Return on Equity (ROE)
since 2005
Calculation
Cisco Systems Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Equity1 | |
|---|---|---|---|---|---|---|---|
| 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: 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 financial data reveals several key trends in profitability, equity growth, and return on equity (ROE) over the reviewed periods.
- Net Income
- The net income exhibits a generally positive performance with some volatility. From 2005 to 2008, net income increased from $5,741 million to $8,052 million, indicating growth in earnings capacity. However, in 2009, there is a noticeable decline to $6,134 million, likely reflective of external economic influences. The period from 2010 to 2017 shows fluctuations but maintains an upward trajectory, peaking at $11,739 million in 2016. In 2018, a sharp drop to $110 million is observed, representing a significant anomaly. Subsequently, net income rebounds and remains strong in the following years, stabilizing above $10,000 million until 2024, though with slight declines noted in the most recent period.
- Equity
- Shareholders' equity shows a consistent increase from $23,174 million in 2005, rising steadily to $66,137 million by 2017. This indicates an accumulation of retained earnings and possibly additional capital contributions. Thereafter, the equity value declines abruptly in 2018 and 2019 to $43,204 million and $33,571 million respectively, suggesting either an impairment, large dividend distributions, or other equity adjustments. From 2020 to 2024, the equity base gradually recovers, reaching $45,457 million, indicating stabilization and slight growth in the company's net assets.
- Return on Equity (ROE)
- ROE fluctuates over the period but generally remains robust. Initially, it stays above 20% until around 2008, reflecting efficient use of equity to generate profits. In the years following, ROE declines amid rising equity balances and net income variability, falling to a low of 0.25% in 2018, coinciding with the drop in net income and equity values. Subsequently, ROE sharply increases to above 29% in 2019 and 2020, signaling improved profitability relative to equity levels. In the last few years, ROE decreases moderately to around 22.7% by 2024, denoting a normalization after the prior peaks.
In summary, the financial trends demonstrate periods of growth, significant volatility around 2018, and recovery thereafter. The interplay between net income and equity values directly impacts the ROE, highlighting critical points of financial performance fluctuation. The recovery in net income and equity after the 2018 anomaly points to resilience, while the overall ROE suggests a generally efficient deployment of equity despite recent moderations.
Comparison to Competitors
Cisco Systems Inc., ROE, long-term trends, comparison to competitors
| Cisco Systems Inc. | Apple Inc. | Arista Networks Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|
| Jul 27, 2024 | 22.70% | 164.59% | 28.54% | — | 21.28% |
| Jul 29, 2023 | 28.44% | 156.08% | 28.91% | — | 32.45% |
| Jul 30, 2022 | 29.70% | 196.96% | 27.68% | — | 20.00% |
| Jul 31, 2021 | 25.66% | 150.07% | 21.13% | 131.10% | 10.20% |
| Jul 25, 2020 | 29.57% | 87.87% | 19.11% | — | 7.91% |
| Jul 27, 2019 | 34.62% | 61.06% | 29.71% | — | 7.64% |
| Jul 28, 2018 | 0.25% | 55.56% | 15.31% | — | 5.47% |
| Jul 29, 2017 | 14.53% | 36.07% | 25.46% | — | 8.64% |
| Jul 30, 2016 | 16.89% | 35.62% | 16.63% | — | 9.99% |
| Jul 25, 2015 | 15.04% | 44.74% | 15.37% | — | 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: 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 27, 2024 | 22.70% | 96.41% |
| Jul 29, 2023 | 28.44% | 101.96% |
| Jul 30, 2022 | 29.70% | 124.98% |
| Jul 31, 2021 | 25.66% | 97.82% |
| Jul 25, 2020 | 29.57% | 69.73% |
| Jul 27, 2019 | 34.62% | 53.63% |
| Jul 28, 2018 | 0.25% | 39.14% |
| Jul 29, 2017 | 14.53% | 28.85% |
| Jul 30, 2016 | 16.89% | 29.27% |
| Jul 25, 2015 | 15.04% | 34.69% |
| 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: 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 27, 2024 | 22.70% | 29.38% |
| Jul 29, 2023 | 28.44% | 31.90% |
| Jul 30, 2022 | 29.70% | 39.03% |
| Jul 31, 2021 | 25.66% | 42.37% |
| Jul 25, 2020 | 29.57% | 35.70% |
| Jul 27, 2019 | 34.62% | 36.62% |
| Jul 28, 2018 | 0.25% | 30.36% |
| Jul 29, 2017 | 14.53% | 23.39% |
| Jul 30, 2016 | 16.89% | 23.35% |
| Jul 25, 2015 | 15.04% | 26.16% |
| Jul 26, 2014 | 13.86% | 25.60% |
| Jul 27, 2013 | 16.89% | 24.88% |
| Jul 28, 2012 | 15.68% | 26.23% |
| Jul 30, 2011 | 13.74% | 29.20% |
| Jul 31, 2010 | 17.55% | 27.88% |
| Jul 25, 2009 | 15.87% | 20.28% |
| Jul 26, 2008 | 23.44% | 25.66% |
| Jul 28, 2007 | 23.29% | 24.00% |
| Jul 29, 2006 | 23.34% | 22.73% |
| Jul 30, 2005 | 24.77% | 22.11% |
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), 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).