How much of Arista Networks’ revenue comes from haram?

Arista Networks is a networking company that specializes in designing Multilayer Network Switches typically used in data centers, cloud computing, and high-frequency trading environments. 

Arista earns its revenue from the following segments:

  • Product Revenue:

Includes revenue generated from sales of Arista’s switching and routing products, as well as software licenses. These allow companies to transfer large amounts of data with low latency.    

  • Service Revenue:

Includes revenue generated from post-contract support which is typically sold alongside its products.

The contributions from each of Arista Networks’ revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Arista Networks’ revenue comes from anything inherently haram.

Does Arista Networks rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income(Net) $3,917$27,139$51,144
Total Revenue$1,374,881$2,317,512$2,410,706
Interest Expense
Total Expenses$949,224$1,617,828$1,604,932
Interest Income / Revenue0.28%1.17%2.12%
Interest Expense / Total Expense
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes: 

Riba is used but not relied upon in Arista Networks’ operations.

What is Arista Networks’ Environmental, Social, and Governance (ESG) impact?

Environment

In 2020, Arista networks reduced direct and indirect greenhouse emissions associated with purchasing electricity, heat, cooling, or steam by 10% from 2019. 

In addition, as of 2020, 34% of Arista Networks’ energy consumption comes from renewable sources.

Social

Arista Networks has a Glassdoor rating of 4.2 out of 5.0 from over 600 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Arista Networks has a net positive ESG impact.

Comfort Rating

From Arista’s business, financial, and ESG reviews, Practical Islamic Finance rates Arista Networks stock as:

Comfortable to invest in from a Halal perspective.

Sources

Arista Networks Q2 2021 10-Q

Arista Networks 2020 10-K

Arista Reviews

Arista Sustainability