Stock Analysis on Net
Stock Analysis on Net
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Cisco Systems Inc. (NASDAQ:CSCO)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Cisco Systems Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Activity Ratio
Total Asset Turnover
Reported 0.53 0.45 0.37 0.40 0.43 0.45
Adjusted 0.53 0.47 0.39 0.43 0.46 0.47
Liquidity Ratio
Current Ratio
Reported 1.51 2.29 3.03 3.16 3.23 3.39
Adjusted 2.28 3.99 5.01 5.35 5.42 6.33
Solvency Ratios
Debt to Equity
Reported 0.73 0.59 0.51 0.45 0.42 0.37
Adjusted 0.53 0.44 0.43 0.39 0.37 0.33
Debt to Capital
Reported 0.42 0.37 0.34 0.31 0.30 0.27
Adjusted 0.35 0.31 0.30 0.28 0.27 0.25
Financial Leverage
Reported 2.91 2.52 1.96 1.91 1.90 1.86
Adjusted 1.95 1.77 1.56 1.55 1.54 1.51
Profitability Ratios
Net Profit Margin
Reported 22.39% 0.22% 20.02% 21.81% 18.27% 16.66%
Adjusted 20.18% 2.15% 23.80% 22.35% 18.82% 16.89%
Return on Equity (ROE)
Reported 34.62% 0.25% 14.53% 16.89% 15.04% 13.86%
Adjusted 21.05% 1.80% 14.63% 14.72% 13.19% 11.96%
Return on Assets (ROA)
Reported 11.88% 0.10% 7.40% 8.83% 7.91% 7.47%
Adjusted 10.77% 1.02% 9.38% 9.52% 8.57% 7.92%

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cisco Systems Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Cisco Systems Inc.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Cisco Systems Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Cisco Systems Inc.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cisco Systems Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cisco Systems Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Cisco Systems Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cisco Systems Inc.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Cisco Systems Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Revenue 51,904  49,330  48,005  49,247  49,161  47,142 
Total assets 97,793  108,784  129,818  121,652  113,481  105,134 
Activity Ratio
Total asset turnover1 0.53 0.45 0.37 0.40 0.43 0.45
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 50,686  50,521  50,027  50,536  50,202  47,861 
Adjusted total assets3 94,959  106,812  126,941  118,681  110,280  102,037 
Activity Ratio
Adjusted total asset turnover4 0.53 0.47 0.39 0.43 0.46 0.47

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Total asset turnover = Revenue ÷ Total assets
= 51,904 ÷ 97,793 = 0.53

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 50,686 ÷ 94,959 = 0.53

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cisco Systems Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Current assets 47,755  61,837  83,703  78,719  76,283  67,114 
Current liabilities 31,712  27,035  27,583  24,911  23,623  19,809 
Liquidity Ratio
Current ratio1 1.51 2.29 3.03 3.16 3.23 3.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 47,891  61,966  83,914  78,968  73,670  64,571 
Adjusted current liabilities3 21,044  15,545  16,762  14,756  13,587  10,197 
Liquidity Ratio
Adjusted current ratio4 2.28 3.99 5.01 5.35 5.42 6.33

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 47,755 ÷ 31,712 = 1.51

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 47,891 ÷ 21,044 = 2.28

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Cisco Systems Inc.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 24,666  25,569  33,717  28,643  25,354  20,909 
Total Cisco shareholders’ equity 33,571  43,204  66,137  63,586  59,698  56,654 
Solvency Ratio
Debt to equity1 0.73 0.59 0.51 0.45 0.42 0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 25,761  26,687  34,868  29,722  26,414  22,055 
Adjusted total equity3 48,579  60,372  81,398  76,744  71,625  67,578 
Solvency Ratio
Adjusted debt to equity4 0.53 0.44 0.43 0.39 0.37 0.33

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Cisco shareholders’ equity
= 24,666 ÷ 33,571 = 0.73

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 25,761 ÷ 48,579 = 0.53

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Cisco Systems Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 24,666  25,569  33,717  28,643  25,354  20,909 
Total capital 58,237  68,773  99,854  92,229  85,052  77,563 
Solvency Ratio
Debt to capital1 0.42 0.37 0.34 0.31 0.30 0.27
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 25,761  26,687  34,868  29,722  26,414  22,055 
Adjusted total capital3 74,340  87,059  116,266  106,466  98,039  89,633 
Solvency Ratio
Adjusted debt to capital4 0.35 0.31 0.30 0.28 0.27 0.25

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,666 ÷ 58,237 = 0.42

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 25,761 ÷ 74,340 = 0.35

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Cisco Systems Inc.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Total assets 97,793  108,784  129,818  121,652  113,481  105,134 
Total Cisco shareholders’ equity 33,571  43,204  66,137  63,586  59,698  56,654 
Solvency Ratio
Financial leverage1 2.91 2.52 1.96 1.91 1.90 1.86
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 94,959  106,812  126,941  118,681  110,280  102,037 
Adjusted total equity3 48,579  60,372  81,398  76,744  71,625  67,578 
Solvency Ratio
Adjusted financial leverage4 1.95 1.77 1.56 1.55 1.54 1.51

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Cisco shareholders’ equity
= 97,793 ÷ 33,571 = 2.91

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 94,959 ÷ 48,579 = 1.95

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cisco Systems Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Net income 11,621  110  9,609  10,739  8,981  7,853 
Revenue 51,904  49,330  48,005  49,247  49,161  47,142 
Profitability Ratio
Net profit margin1 22.39% 0.22% 20.02% 21.81% 18.27% 16.66%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 10,228  1,087  11,908  11,295  9,447  8,083 
Adjusted revenue3 50,686  50,521  50,027  50,536  50,202  47,861 
Profitability Ratio
Adjusted net profit margin4 20.18% 2.15% 23.80% 22.35% 18.82% 16.89%

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 11,621 ÷ 51,904 = 22.39%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 10,228 ÷ 50,686 = 20.18%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cisco Systems Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Net income 11,621  110  9,609  10,739  8,981  7,853 
Total Cisco shareholders’ equity 33,571  43,204  66,137  63,586  59,698  56,654 
Profitability Ratio
ROE1 34.62% 0.25% 14.53% 16.89% 15.04% 13.86%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 10,228  1,087  11,908  11,295  9,447  8,083 
Adjusted total equity3 48,579  60,372  81,398  76,744  71,625  67,578 
Profitability Ratio
Adjusted ROE4 21.05% 1.80% 14.63% 14.72% 13.19% 11.96%

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
ROE = 100 × Net income ÷ Total Cisco shareholders’ equity
= 100 × 11,621 ÷ 33,571 = 34.62%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 10,228 ÷ 48,579 = 21.05%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Cisco Systems Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Reported
Selected Financial Data (US$ in millions)
Net income 11,621  110  9,609  10,739  8,981  7,853 
Total assets 97,793  108,784  129,818  121,652  113,481  105,134 
Profitability Ratio
ROA1 11.88% 0.10% 7.40% 8.83% 7.91% 7.47%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 10,228  1,087  11,908  11,295  9,447  8,083 
Adjusted total assets3 94,959  106,812  126,941  118,681  110,280  102,037 
Profitability Ratio
Adjusted ROA4 10.77% 1.02% 9.38% 9.52% 8.57% 7.92%

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 11,621 ÷ 97,793 = 11.88%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 10,228 ÷ 94,959 = 10.77%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cisco Systems Inc.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.