Arista Networks, Inc. — Earnings Quality Grade C
ANET · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 17 days (59 → 76)
AR growth 65.4% exceeds revenue growth 28.6%
Revenue 28.6%, CFFO 17.9%. Cash follows revenue
Expense Quality
Inventory 22.5% vs COGS 28.9%. Normal
CapEx growth 273.4% is >2x revenue growth 28.6%
SG&A/Gross Profit = 11.7%, excellent (<30%)
Gross margin 64.1%, change -0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $4.3B, FCF/NI = 1.21
Accruals ratio = -4.4%. Low accruals
Insufficient data
Balance Sheet Health
Goodwill+Intangibles $0.4B = 3% of equity. Manageable
Insufficient data
Other assets grew 105.6% vs revenue 28.6%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 26% YoY. Normal
Manipulation Score
M-Score = -2.24 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10