Cisco Systems Inc., adjustment to net income

US$ in millions

12 months ended:	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
Net income (as reported)	12,613)	11,812)	10,591)	11,214)	11,621)	110)
Add: Available-for-sale investments, change in net unrealized gains and losses, net of tax	(78)	(557)	(95)	336)	459)	(554)
Less: Available-for-sale investments, net (gains) losses reclassified into earnings, net of tax	17)	(4)	(38)	(21)	19)	(183)
Net income (adjusted)	12,552)	11,251)	10,458)	11,529)	12,099)	(627)

Download chart

Cisco Systems Inc., adjusted profitability ratios

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
Net Profit Margin
Reported net profit margin	22.13%	22.91%	21.26%	22.75%	22.39%	0.22%
Adjusted net profit margin	22.02%	21.82%	20.99%	23.38%	23.31%	-1.27%
Return on Equity (ROE)
Reported ROE	28.44%	29.70%	25.66%	29.57%	34.62%	0.25%
Adjusted ROE	28.30%	28.29%	25.34%	30.40%	36.04%	-1.45%
Return on Assets (ROA)
Reported ROA	12.38%	12.57%	10.86%	11.82%	11.88%	0.10%
Adjusted ROA	12.32%	11.97%	10.73%	12.15%	12.37%	-0.58%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cisco Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cisco Systems Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Cisco Systems Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Download chart

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	12,613)	11,812)	10,591)	11,214)	11,621)	110)
Revenue	56,998)	51,557)	49,818)	49,301)	51,904)	49,330)
Profitability Ratio
Net profit margin¹	22.13%	22.91%	21.26%	22.75%	22.39%	0.22%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	12,552)	11,251)	10,458)	11,529)	12,099)	(627)
Revenue	56,998)	51,557)	49,818)	49,301)	51,904)	49,330)
Profitability Ratio
Adjusted net profit margin²	22.02%	21.82%	20.99%	23.38%	23.31%	-1.27%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 12,613 ÷ 56,998 = 22.13%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 12,552 ÷ 56,998 = 22.02%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cisco Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	12,613)	11,812)	10,591)	11,214)	11,621)	110)
Equity	44,353)	39,773)	41,275)	37,920)	33,571)	43,204)
Profitability Ratio
ROE¹	28.44%	29.70%	25.66%	29.57%	34.62%	0.25%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	12,552)	11,251)	10,458)	11,529)	12,099)	(627)
Equity	44,353)	39,773)	41,275)	37,920)	33,571)	43,204)
Profitability Ratio
Adjusted ROE²	28.30%	28.29%	25.34%	30.40%	36.04%	-1.45%

2023 Calculations

¹ ROE = 100 × Net income ÷ Equity
= 100 × 12,613 ÷ 44,353 = 28.44%

² Adjusted ROE = 100 × Adjusted net income ÷ Equity
= 100 × 12,552 ÷ 44,353 = 28.30%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cisco Systems Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019	Jul 28, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	12,613)	11,812)	10,591)	11,214)	11,621)	110)
Total assets	101,852)	94,002)	97,497)	94,853)	97,793)	108,784)
Profitability Ratio
ROA¹	12.38%	12.57%	10.86%	11.82%	11.88%	0.10%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	12,552)	11,251)	10,458)	11,529)	12,099)	(627)
Total assets	101,852)	94,002)	97,497)	94,853)	97,793)	108,784)
Profitability Ratio
Adjusted ROA²	12.32%	11.97%	10.73%	12.15%	12.37%	-0.58%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 12,613 ÷ 101,852 = 12.38%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 12,552 ÷ 101,852 = 12.32%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Cisco Systems Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Cisco Systems Inc. (NASDAQ:CSCO)

Analysis of Investments