Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

$24.99

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.

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Return on Invested Capital (ROIC)

Cisco Systems Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Jul 27, 2024 Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Apple Inc.
Arista Networks Inc.
Super Micro Computer Inc.

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Cisco Systems Inc. ROIC improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Decomposition of ROIC

Cisco Systems Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Jul 27, 2024 = × ×
Jul 29, 2023 = × ×
Jul 30, 2022 = × ×
Jul 31, 2021 = × ×
Jul 25, 2020 = × ×
Jul 27, 2019 = × ×

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2024 year is the decrease in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Cisco Systems Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Jul 27, 2024 Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Revenue
Add: Increase (decrease) in deferred revenue
Adjusted revenue
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Apple Inc.
Arista Networks Inc.
Super Micro Computer Inc.

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Cisco Systems Inc. OPM deteriorated from 2022 to 2023 and from 2023 to 2024.

Turnover of Capital (TO)

Cisco Systems Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Jul 27, 2024 Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019
Selected Financial Data (US$ in millions)
Revenue
Add: Increase (decrease) in deferred revenue
Adjusted revenue
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Apple Inc.
Arista Networks Inc.
Super Micro Computer Inc.

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).

1 Invested capital. See details »

2 2024 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Cisco Systems Inc. TO improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Effective Cash Tax Rate (CTR)

Cisco Systems Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Jul 27, 2024 Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Apple Inc.
Arista Networks Inc.
Super Micro Computer Inc.

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Cisco Systems Inc. CTR increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.