Arista Networks (WBO:ANET) Interest Coverage

: No Debt ⁽¹⁾ (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Arista Networks's Operating Income for the three months ended in Dec. 2023 was €587 Mil. Arista Networks's Interest Expense for the three months ended in Dec. 2023 was €0 Mil. Arista Networks has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Arista Networks Inc has enough cash to cover all of its debt. Its financial situation is stable.

(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

The historical rank and industry rank for Arista Networks's Interest Coverage or its related term are showing as below:

WBO:ANET's Interest Coverage is not ranked ^*
in the Hardware industry.
Industry Median: 12.765
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Arista Networks Interest Coverage Historical Data

The historical data trend for Arista Networks's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Arista Networks Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

N/A

No Debt

Arista Networks Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																N/A	N/A	N/A	N/A	No Debt

Competitive Comparison

For the Computer Hardware subindustry, Arista Networks's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Hardware industry and Technology sector, Arista Networks's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arista Networks's Interest Coverage falls into.

Arista Networks Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Arista Networks's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Arista Networks's Interest Expense was €0 Mil. Its Operating Income was €2,070 Mil. And its Long-Term Debt & Capital Lease Obligation was €0 Mil.

Arista Networks had no debt ⁽¹⁾.

Arista Networks's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Arista Networks's Interest Expense was €0 Mil. Its Operating Income was €587 Mil. And its Long-Term Debt & Capital Lease Obligation was €0 Mil.

Arista Networks had no debt ⁽¹⁾.

The higher the ratio, the stronger the company's Financial Strength is.

Arista Networks (WBO:ANET) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Arista Networks Interest Coverage Related Terms

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Arista Networks (WBO:ANET) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Arista Networks Inc (WBO:ANET) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ANET:USA ANET:Mexico 117:Germany A1NE34:Brazil

Address

5453 Great America Parkway, Santa Clara, CA, USA, 95054

Website

https://www.arista.com

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.