Is Arista Networks Stock Halal?
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?
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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: