Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Cisco Systems Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
The analyzed financial data reveals several trends and fluctuations in key income and comprehensive income metrics over the six-year period.
- Net Income
- Net income exhibits variability with a general peak occurring in the fiscal year ending July 29, 2023, reaching approximately 12.6 billion US dollars. Although the net income decreased in the latest year to about 10.3 billion US dollars, it remains within a relatively high range compared to earlier years. The data indicates a pattern of moderate fluctuations rather than steady growth or decline.
- Available-for-sale Investments: Change and Reclassification
- The net unrealized gains and losses on available-for-sale investments show a downward trend from a positive 459 million US dollars in 2019 to a significant negative value of -557 million in 2022, followed by a rebound to a positive 146 million in 2024. Correspondingly, gains or losses reclassified into earnings have oscillated, generally registering small absolute values, though the most recent year shows a notable increase in gains at 53 million US dollars.
- Cash Flow Hedging Instruments
- The unrealized gains and losses related to cash flow hedging instruments have shown a general upward trend, moving from a minor gain of 7 million in 2020 to a substantial gain of 98 million in 2024. However, net gains or losses reclassified into earnings from these hedging instruments have been negative in four of the six years, with the magnitude of losses increasing notably in recent years, suggesting increased volatility or hedge ineffectiveness.
- Cumulative Translation Adjustment and Actuarial Gains/Losses
- This item fluctuates significantly, evidencing currency translation impacts and actuarial valuation changes. The data displays swings from negative 250 million in 2019 to a positive 230 million in 2021, followed by a steep negative adjustment of -689 million in 2022. The values subsequent years indicate partial recovery but remain volatile.
- Other Comprehensive Income (Loss)
- Other comprehensive income shows notable volatility, with a significant loss in 2022 reaching -1.2 billion US dollars, contrasting with gains in previous and subsequent years. This volatility aligns with the trends observed in net unrealized gains/losses and translation adjustments, indicating substantial influence from non-operational financial elements during that year.
- Comprehensive Income
- Comprehensive income largely mirrors the net income trend but with less pronounced fluctuations. It peaked in 2023 at approximately 12.7 billion US dollars and declined in 2024 to around 10.5 billion US dollars, reflecting the combined effects of operating profit and other comprehensive income variations.
Overall, the data reveals a pattern of operational profitability tempered by significant variability in components of other comprehensive income, particularly from investment valuations and currency translation adjustments. The marked volatility in 2022 within several categories warrants attention, potentially indicating external economic or market disruptions impacting comprehensive income figures during that period.