Arista Networks

Arista’s balance sheet is exceptionally strong. The company holds enormous liquidity (around $2.76B cash and $5.54B marketable securities at end-2024) and has essentially zero debt. Total current assets ($11.9B) vastly exceed current liabilities ($2.73B).

Free cash flow has been huge (around $3.7B in FY2024), easily covering capex and shareholder returns. This means even a severe downturn could be weathered without refinancing; the firm seems immune to bankruptcy risk. We score financial strength extremely high.

The only minor point is that Arista holds a lot of inventory (nearly $2B of inventory), which can fluctuate asset utilization, but this is manageable. Overall, Arista’s low leverage and large cash cushions earn it a near-top score.