Operating Margin % is calculated as Operating Income divided by its Revenue. Arista Networks's Operating Income for the
three
months ended in Dec. 2023 was $640 Mil. Arista Networks's Revenue for the
three
months ended in Dec. 2023 was $1,540 Mil. Therefore, Arista Networks's Operating Margin % for the quarter that ended in Dec. 2023 was 41.54%.
Good Sign:
Arista Networks Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Arista Networks's Operating Margin % or its related term are showing as below:
ANET'
s Operating Margin % Range Over the Past 10 Years
Min: 17.83 Med: 30.78 Max: 38.52
Current: 38.52
ANET's Operating Margin % is ranked better than 99.11% of 2463
companies
in the Hardware industry
Industry Median: 3.64
vs ANET: 38.52
Arista Networks's 5-Year Average Operating Margin % Growth Rate was 3.40% per year.
Arista Networks's Operating Income for the
three
months ended in Dec. 2023 was $640 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,257 Mil.
Arista Networks Operating Margin % Historical Data
The historical data trend for Arista Networks's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Computer Hardware subindustry, Arista Networks's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arista Networks Operating Margin % Distribution
For the Hardware industry and Technology sector, Arista Networks's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Arista Networks's Operating Margin % falls into.
Arista Networks Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Arista Networks's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Arista Networks Operating Margin % Related Terms
Thank you for viewing the detailed overview of Arista Networks's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arista Networks (Arista Networks) Business Description
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ANET has been successfully added to your 