Return on Equity (ROE)
Higher than 72% of Technology sector peers
Updated 1928h ago
Sector Performance
72th percentileANET
28.4%
Sector Median
8.2%
Sector Avg
2.4%
Deep Analysis
Arista Networks’ Return on Equity (ROE) of 28.4% means the company generated $28.40 in profit for every $100 of shareholders’ equity over the past year, indicating strong efficiency in using investor capital.
This figure far exceeds the technology sector median of 6.7%, placing Arista in the 77th percentile among sector peers—well above the typical company in its industry. The metric shows no trend data because the year-over-year and quarter-over-quarter changes are both listed as N/A; only a single historical value of 28.4% is provided, so no direction can be inferred. The combination of a high ROE level with an absent trend suggests the current profitability is excellent, but without prior comparisons, investors cannot assess whether this performance is improving or declining. This lack of trend introduces a degree of uncertainty, yet the extremely strong relative standing points to a favorable risk/reward profile. The 28.4% ROE directly supports the overall BULLISH verdict, as it demonstrates that Arista is generating far superior returns on equity compared to the vast majority of its technology-sector peers.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about ANET?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does ANET's Return on Equity (ROE) compare to its sector?
ANET's Return on Equity (ROE) of 28.4% compares to a Technology sector median of 8.2%, placing it in the 72th percentile.
Who are ANET's closest peers by Return on Equity (ROE)?
The closest Technology peers by Return on Equity (ROE) include: AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%), UCTT (-22.5%).
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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28.4%
Sector Median
8.2%
Sector Avg
2.4%
How ANET's Return on Equity (ROE) compares to sector peers.
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