Return on Equity (ROE)
since 2005
Calculation
Cisco Systems Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Equity1 | |
|---|---|---|---|---|---|---|---|
| Jul 25, 2026 | 26.38% | = | 100 | × | 13,267) | ÷ | 50,285) |
| Jul 26, 2025 | 21.73% | = | 100 | × | 10,180) | ÷ | 46,843) |
| Jul 27, 2024 | 22.70% | = | 100 | × | 10,320) | ÷ | 45,457) |
| Jul 29, 2023 | 28.44% | = | 100 | × | 12,613) | ÷ | 44,353) |
| Jul 30, 2022 | 29.70% | = | 100 | × | 11,812) | ÷ | 39,773) |
| Jul 31, 2021 | 25.66% | = | 100 | × | 10,591) | ÷ | 41,275) |
| Jul 25, 2020 | 29.57% | = | 100 | × | 11,214) | ÷ | 37,920) |
| Jul 27, 2019 | 34.62% | = | 100 | × | 11,621) | ÷ | 33,571) |
| Jul 28, 2018 | 0.25% | = | 100 | × | 110) | ÷ | 43,204) |
| Jul 29, 2017 | 14.53% | = | 100 | × | 9,609) | ÷ | 66,137) |
| Jul 30, 2016 | 16.89% | = | 100 | × | 10,739) | ÷ | 63,586) |
| Jul 25, 2015 | 15.04% | = | 100 | × | 8,981) | ÷ | 59,698) |
| Jul 26, 2014 | 13.86% | = | 100 | × | 7,853) | ÷ | 56,654) |
| Jul 27, 2013 | 16.89% | = | 100 | × | 9,983) | ÷ | 59,120) |
| Jul 28, 2012 | 15.68% | = | 100 | × | 8,041) | ÷ | 51,286) |
| Jul 30, 2011 | 13.74% | = | 100 | × | 6,490) | ÷ | 47,226) |
| Jul 31, 2010 | 17.55% | = | 100 | × | 7,767) | ÷ | 44,267) |
| Jul 25, 2009 | 15.87% | = | 100 | × | 6,134) | ÷ | 38,647) |
| Jul 26, 2008 | 23.44% | = | 100 | × | 8,052) | ÷ | 34,353) |
| Jul 28, 2007 | 23.29% | = | 100 | × | 7,333) | ÷ | 31,480) |
| Jul 29, 2006 | 23.34% | = | 100 | × | 5,580) | ÷ | 23,912) |
| Jul 30, 2005 | 24.77% | = | 100 | × | 5,741) | ÷ | 23,174) |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).
1 US$ in millions
The analysis of return on equity (ROE) reveals a trajectory characterized by an initial period of stability, a prolonged phase of compression, and a subsequent structural shift resulting in elevated returns.
- Stability and Initial Compression (2005–2017)
- Between 2005 and 2008, ROE remained consistently high and stable, ranging from 23.29% to 24.77%. Following this period, a general downward trend is observed, with ROE fluctuating between 13.74% and 17.55% for nearly a decade. This decline is closely linked to the steady accumulation of equity, which grew from US$ 23.17 billion in 2005 to a peak of US$ 66.14 billion in 2017, effectively diluting the return on each unit of shareholder equity as net income growth failed to keep pace with equity expansion.
- The 2018 Fiscal Anomaly
- A severe contraction occurred in 2018, where ROE dropped to a nominal 0.25%. This collapse was driven by a precipitous decline in net income to US$ 110 million, the lowest point in the observed period. This represents a significant outlier in the company's profitability profile, though it coincided with a sharp reduction in total equity, which fell to US$ 43.20 billion.
- Structural Recovery and Capital Optimization (2019–2026)
- From 2019 onward, ROE experienced a substantial rebound, peaking at 34.62% in 2019. This resurgence was fueled by a combination of net income recovering to levels above US$ 11 billion and a significantly lower equity base, which hit a floor of US$ 33.57 billion in 2018. The trend from 2020 through 2026 indicates a stabilization of ROE within a higher band, generally fluctuating between 21.73% and 29.70%. This suggests a shift in capital management strategy, where lower equity levels relative to earnings have enhanced the efficiency of shareholder returns.
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Comparison to Competitors
Cisco Systems Inc., ROE, long-term trends, comparison to competitors
| Cisco Systems Inc. | Apple Inc. | Arista Networks Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Jul 25, 2026 | 26.38% | — | — | — | -149.34% | 15.40% |
| Jul 26, 2025 | 21.73% | 151.91% | 28.39% | — | 2.28% | 16.64% |
| Jul 27, 2024 | 22.70% | 164.59% | 28.54% | — | -57.09% | 21.28% |
| Jul 29, 2023 | 28.44% | 156.08% | 28.91% | — | -9.71% | 32.45% |
| Jul 30, 2022 | 29.70% | 196.96% | 27.68% | — | 10.61% | 20.00% |
| Jul 31, 2021 | 25.66% | 150.07% | 21.13% | 131.10% | 20.14% | 10.20% |
| Jul 25, 2020 | 29.57% | 87.87% | 19.11% | — | 7.75% | 7.91% |
| Jul 27, 2019 | 34.62% | 61.06% | 29.71% | — | -2.43% | 7.64% |
| Jul 28, 2018 | 0.25% | 55.56% | 15.31% | — | 26.79% | 5.47% |
| Jul 29, 2017 | 14.53% | 36.07% | 25.46% | — | -16.56% | 8.64% |
| Jul 30, 2016 | 16.89% | 35.62% | 16.63% | — | 1.87% | 9.99% |
| Jul 25, 2015 | 15.04% | 44.74% | 15.37% | — | -0.89% | 16.46% |
| Jul 26, 2014 | 13.86% | 35.42% | 15.63% | — | — | 11.55% |
| Jul 27, 2013 | 16.89% | 29.98% | — | — | — | 5.70% |
| Jul 28, 2012 | 15.68% | 35.30% | — | — | — | 8.82% |
| Jul 30, 2011 | 13.74% | 33.83% | — | — | — | 14.00% |
| Jul 31, 2010 | 17.55% | 29.32% | — | — | — | 11.98% |
| Jul 25, 2009 | 15.87% | 20.49% | — | — | — | 9.02% |
| Jul 26, 2008 | 23.44% | 22.99% | — | — | — | 16.74% |
| Jul 28, 2007 | 23.29% | 24.06% | — | — | — | 16.69% |
| Jul 29, 2006 | 23.34% | 19.92% | — | — | — | — |
| Jul 30, 2005 | 24.77% | 17.88% | — | — | — | — |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).
Comparison to Sector (Technology Hardware & Equipment)
Cisco Systems Inc., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| Cisco Systems Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Jul 25, 2026 | 26.38% | — |
| Jul 26, 2025 | 21.73% | 94.58% |
| Jul 27, 2024 | 22.70% | 95.15% |
| Jul 29, 2023 | 28.44% | 100.63% |
| Jul 30, 2022 | 29.70% | 122.76% |
| Jul 31, 2021 | 25.66% | 96.47% |
| Jul 25, 2020 | 29.57% | 68.72% |
| Jul 27, 2019 | 34.62% | 52.95% |
| Jul 28, 2018 | 0.25% | 39.07% |
| Jul 29, 2017 | 14.53% | 28.71% |
| Jul 30, 2016 | 16.89% | 29.20% |
| Jul 25, 2015 | 15.04% | 34.61% |
| Jul 26, 2014 | 13.86% | 28.07% |
| Jul 27, 2013 | 16.89% | 25.70% |
| Jul 28, 2012 | 15.68% | 29.32% |
| Jul 30, 2011 | 13.74% | 26.14% |
| Jul 31, 2010 | 17.55% | 23.63% |
| Jul 25, 2009 | 15.87% | 17.78% |
| Jul 26, 2008 | 23.44% | 23.25% |
| Jul 28, 2007 | 23.29% | 23.52% |
| Jul 29, 2006 | 23.34% | 22.33% |
| Jul 30, 2005 | 24.77% | 23.09% |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).
Comparison to Industry (Information Technology)
Cisco Systems Inc., ROE, long-term trends, comparison to industry (information technology)
| Cisco Systems Inc. | Information Technology | |
|---|---|---|
| Jul 25, 2026 | 26.38% | — |
| Jul 26, 2025 | 21.73% | 34.38% |
| Jul 27, 2024 | 22.70% | 28.82% |
| Jul 29, 2023 | 28.44% | 31.26% |
| Jul 30, 2022 | 29.70% | 38.03% |
| Jul 31, 2021 | 25.66% | 41.64% |
| Jul 25, 2020 | 29.57% | 35.38% |
| Jul 27, 2019 | 34.62% | 35.94% |
| Jul 28, 2018 | 0.25% | 30.23% |
| Jul 29, 2017 | 14.53% | 23.19% |
| Jul 30, 2016 | 16.89% | 23.00% |
| Jul 25, 2015 | 15.04% | 25.97% |
| Jul 26, 2014 | 13.86% | 25.43% |
| Jul 27, 2013 | 16.89% | 24.73% |
| Jul 28, 2012 | 15.68% | 26.09% |
| Jul 30, 2011 | 13.74% | 29.03% |
| Jul 31, 2010 | 17.55% | 27.62% |
| Jul 25, 2009 | 15.87% | 20.05% |
| Jul 26, 2008 | 23.44% | 25.24% |
| Jul 28, 2007 | 23.29% | 23.67% |
| Jul 29, 2006 | 23.34% | 22.58% |
| Jul 30, 2005 | 24.77% | 21.92% |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).