Cisco Systems Inc. (NASDAQ:CSCO)

Total Asset Turnover

The reported total asset turnover displayed a slight fluctuation before declining noticeably in the most recent two years, dropping from 0.56 in 2023 to a low of 0.43 in 2024, followed by a minor recovery to 0.46 in 2025. The adjusted total asset turnover mirrored this trend, peaking at 0.62 in 2023 prior to dropping significantly to 0.48 in 2024 and marginally improving to 0.50 in 2025. This indicates that asset utilization efficiency weakened recently after several years of gradual improvement.

Current Ratio

The reported current ratio showed a consistent decreasing trend over the six-year period, falling from 1.72 in 2020 to 1.00 in 2025, indicating a lowering short-term liquidity position. The adjusted current ratio, which accounts for certain adjustments to current assets and liabilities, also declined but from a higher starting point, dropping from 3.14 to 1.88. While both ratios decreased, the adjusted versions suggest liquidity remains stronger than the reported ratios imply, although the downward trend signals tightening liquidity positions.

Debt to Equity Ratio

There was a clear downward trajectory in both reported and adjusted debt to equity ratios from 2020 through 2023, reflecting a reduction in leverage and reliance on debt financing. However, from 2023 to 2025, both ratios rose sharply, with reported debt to equity increasing from 0.19 to 0.60, and adjusted from 0.15 to 0.43. This indicates a notable increase in financial leverage in recent years, potentially signaling increased risk or strategic financing changes.

Debt to Capital Ratio

Similar to debt to equity, the reported debt to capital ratio declined steadily from 0.28 in 2020 to 0.16 in 2023, then rose sharply to 0.37 by 2025. Adjusted figures followed the same pattern, dropping to 0.13 at 2023 before rising to 0.30 by 2025. These patterns confirm increased leverage and debt financing relative to overall capital in the latter years.

Financial Leverage

The reported financial leverage ratio decreased gradually from 2.50 in 2020 to 2.30 in 2023, followed by an increase to 2.61 in 2025. The adjusted financial leverage demonstrated a similar downward trend until 2023, reaching 1.49, then increased to 1.67 in 2025. This indicates a modest rise in leverage after a period of deleveraging, consistent with observed debt ratio changes.

Net Profit Margin

Reported net profit margin generally declined over the six years, starting at 22.75% in 2020 and ending at 17.97% in 2025, with only minor fluctuations in between. The adjusted net profit margin, slightly higher in earlier years, showed a similar downward trend, declining from 26.26% in 2020 to 17.07% in 2025. This suggests a decreasing profitability per sales dollar, potentially due to rising costs or competitive pressures.

Return on Equity (ROE)

ROE exhibited a decreasing trend in both reported and adjusted measures. Reported ROE declined from 29.57% in 2020 to 21.73% in 2025, reflecting a significant drop but remaining relatively high. Adjusted ROE showed a more pronounced decline, from 24.48% to 14.10% over the same period, suggesting a reduction in the efficiency of equity use to generate earnings.

Return on Assets (ROA)

The reported ROA initially increased from 11.82% in 2020 to 12.57% in 2022, maintaining near that level in 2023, before falling sharply to around 8.3% in 2024 and 2025. The adjusted ROA followed a similar pattern, peaking slightly earlier and declining in recent years. This pattern indicates declining overall asset profitability in the latter period.

Revenue Trends

Revenue showed a generally positive trend over the six-year period, increasing from $49,301 million in 2020 to $56,654 million in 2025. There was a noticeable peak in 2023 at $56,998 million, followed by a slight decline in 2024 before rising again in 2025. This pattern indicates strong but somewhat fluctuating growth in revenue over the years.

Total Assets

Total assets experienced moderate fluctuations, starting at $94,853 million in 2020 and ending somewhat higher at $122,291 million in 2025. Assets slightly decreased in 2022 before increasing substantially in 2024, suggesting possible asset acquisitions or growth initiatives during that period. However, a slight decrease occurred in 2025 compared to 2024.

Reported Total Asset Turnover

The reported total asset turnover ratio remained fairly consistent around the mid-0.5 range from 2020 to 2023, ranging between 0.51 and 0.56. A significant decline is observed in 2024, dropping sharply to 0.43, with a minor recovery to 0.46 in 2025. This decline in turnover suggests reduced efficiency in using assets to generate revenue during the latter period.

Adjusted Revenue

Adjusted revenue closely mirrored reported revenue trends but with slightly higher values throughout. It increased steadily from $51,280 million in 2020 to a peak of $59,284 million in 2023, subsequently dropping to $56,728 million in 2024 and stabilizing around $56,958 million in 2025. The adjustments imply some accounting changes or reclassifications that marginally increased reported revenue figures.

Adjusted Total Assets

Adjusted total assets showed a similar pattern to total assets, beginning at $91,006 million in 2020 and increasing to $115,004 million in 2025 after a peak of $118,238 million in 2024. The adjustments resulted in overall lower asset values compared to reported totals, suggesting conservative estimates or exclusion of certain asset components.

Adjusted Total Asset Turnover

Adjusted total asset turnover was consistently higher than the reported ratio, ranging from 0.55 to 0.62 between 2020 and 2023. Like the reported ratio, it experienced a downward shift in 2024 to 0.48 and a slight improvement in 2025 to 0.50. This trend highlights a notable reduction in asset efficiency during the recent years even after adjustments.

Overall Insights

The data indicates steady revenue growth accompanied by fluctuating asset levels. However, both reported and adjusted asset turnover ratios decline markedly starting in 2024, suggesting potential challenges in asset utilization efficiency despite growing revenues. The divergence between reported and adjusted figures hints at accounting adjustments impacting asset and revenue representations, but the overall trends remain aligned.

Current Assets

Current assets show a declining trend overall, decreasing from 43,573 million US$ in 2020 to 34,986 million US$ in 2025. There was a notable dip in 2022 to 36,717 million US$, followed by a temporary recovery to 43,348 million US$ in 2023 before declining again in the subsequent years.

Current Liabilities

Current liabilities generally increased over the period, rising from 25,331 million US$ in 2020 to a peak of 40,584 million US$ in 2024, before dropping somewhat to 35,064 million US$ in 2025. The liabilities show a strong upward movement especially after 2022.

Reported Current Ratio

The reported current ratio declined steadily from 1.72 in 2020 to 0.91 in 2024, indicating a weakening liquidity position relative to current liabilities. There was a slight improvement to 1.0 in 2025, suggesting marginal recovery in short-term financial strength.

Adjusted Current Assets

Adjusted current assets follow a similar trend to reported current assets, starting at 43,716 million US$ in 2020 and decreasing to 35,055 million US$ in 2025. Fluctuations mirror those seen in reported current assets with a dip in 2022, a bounce in 2023, and a subsequent decline.

Adjusted Current Liabilities

Adjusted current liabilities show an increase from 13,925 million US$ in 2020 to 18,648 million US$ in 2025, with a peak of 24,335 million US$ in 2024. These liabilities grew steadily but at a slower rate compared to reported current liabilities, though still displaying a significant rise over the years.

Adjusted Current Ratio

Adjusted current ratio trends downward from a high of 3.14 in 2020 to a low of 1.52 in 2024, before rebounding to 1.88 in 2025. Despite the decline, the adjusted ratio remains well above the reported current ratio, indicating a stronger liquidity position after adjustments. The ratio's recovery in 2025 suggests some improvement in the company's adjusted short-term liquidity dynamics.

Overall Analysis

The financial data reflects a trend of declining liquidity over time when using reported figures, driven by rising current liabilities and decreasing current assets. However, when adjustments are made, the liquidity position appears stronger, despite also showing a downward trend. Both measures depict a significant deterioration around 2024, with partial recovery in 2025. This suggests increasing pressure on working capital and short-term financial health, necessitating close monitoring and potential management action to stabilize liquidity ratios moving forward.

The analysis of the financial data over the examined periods reveals several noteworthy trends in the company's capital structure, particularly concerning its debt and equity components.

Total Debt

Total debt demonstrates a declining trend from July 25, 2020, up to July 29, 2023, decreasing steadily from 14,583 million USD to 8,391 million USD. However, this trend reverses sharply starting in July 27, 2024, where total debt surges dramatically to 30,962 million USD, before slightly declining to 28,093 million USD by July 26, 2025.

Equity

Equity exhibits a consistent upward trend throughout the entire period under review. Beginning at 37,920 million USD in July 2020, equity increases periodically, reaching 46,843 million USD by July 2025. This steady growth indicates ongoing strengthening of shareholder investment or retained earnings over time.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio decreases progressively from 0.38 in July 2020 to 0.19 by July 2023, reflecting a reduction in financial leverage and indicating a more conservative capital structure during this timeframe. Nonetheless, there is a marked increase after July 2023, with the ratio rising to 0.68 in July 2024, before slightly declining to 0.60 in July 2025. This pattern corresponds to the sharp rise in total debt observed during these years.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to total debt: a gradual decline from 15,585 million USD in July 2020 to 9,411 million USD in July 2023, then an abrupt increase to 32,232 million USD in July 2024, with a subsequent decline to 29,643 million USD by July 2025.

Adjusted Equity

Adjusted equity shows consistent growth from 55,004 million USD in July 2020 to 68,956 million USD by July 2025, indicating an ongoing increase in adjusted shareholder value over time.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio aligns with the trends seen in reported ratios. It decreases steadily from 0.28 in July 2020 to 0.15 in July 2023, reflecting reduced leverage, followed by a considerable rise to 0.47 in July 2024 and maintaining a similar level at 0.43 in July 2025. This reflects a substantial increase in debt relative to equity starting in 2024, though still lower than the reported ratio in the same periods.

In summary, the company's financial leverage decreased consistently until mid-2023, supported by declining debt levels amidst rising equity values, which suggests a move toward a stronger equity position and lower financial risk. However, from mid-2024 onwards, there is a pronounced increase in debt, substantially raising the leverage ratios. Although equity continues to grow, the magnitude of debt increase outpaces it, indicating a strategic shift toward higher leverage during the most recent periods.

Total Debt

The total debt decreased steadily from 14,583 million USD in July 2020 to 8,391 million USD in July 2023, indicating a consistent reduction in the company's debt over this period. However, there was a sharp increase in total debt in July 2024 to 30,962 million USD, which remained elevated at 28,093 million USD in July 2025. This suggests a significant change in financing strategy or capital structure starting in mid-2024.

Total Capital

Total capital exhibited minor fluctuations in the initial years, moving slightly from 52,503 million USD in July 2020 to 52,744 million USD in July 2023. There was a significant jump to 76,419 million USD in July 2024 and a slight decline to 74,936 million USD by July 2025. This rise aligns with the increased debt, indicating an overall expansion in capital employed by the company.

Reported Debt to Capital Ratio

The reported debt to capital ratio trended downward from 0.28 in July 2020 to 0.16 in July 2023, reflecting a decreasing proportion of debt in the capital structure. However, this ratio surged to 0.41 in July 2024 before slightly decreasing to 0.37 in July 2025. This inflection mirrors the marked increase in debt and indicates a higher risk profile or leveraging during this latter period.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to total debt, decreasing from 15,585 million USD in July 2020 to 9,411 million USD in July 2023, then increasing markedly to 32,232 million USD in July 2024 and marginally declining to 29,643 million USD by July 2025. The adjustment maintains consistency with the trends in reported debt, confirming the changed debt dynamics in recent years.

Adjusted Total Capital

Adjusted total capital remained relatively stable between 70,589 million USD in July 2020 and 73,427 million USD in July 2023, followed by a significant rise to 100,701 million USD in July 2024 and a slight decrease to 98,599 million USD by July 2025. This pattern parallels the reported total capital changes and underscores an expanded capital base starting from mid-2024.

Adjusted Debt to Capital Ratio

This ratio exhibited a declining trend from 0.22 in July 2020 to 0.13 in July 2023, reflecting reducing leverage. Subsequently, the ratio increased substantially to 0.32 in July 2024, followed by a slight decrease to 0.30 in July 2025. The adjusted ratio confirms the indication of increased debt reliance on the company's capital structure during the most recent years.

Total assets

The total assets exhibited a moderate fluctuation between 2020 and 2022, decreasing slightly from 94,853 million US dollars in 2020 to 94,002 million in 2022. Subsequently, a notable increase occurred, with total assets rising to 101,852 million in 2023 and peaking at 124,413 million in 2024, before experiencing a slight decline to 122,291 million in 2025.

Equity

Equity showed an overall upward trend across the six-year period. Starting at 37,920 million US dollars in 2020, it increased to 41,275 million in 2021, followed by a decrease to 39,773 million in 2022. From 2023 onwards, equity consistently increased, reaching 44,353 million in 2023 and culminating at 46,843 million in 2025.

Reported financial leverage

The reported financial leverage ratio demonstrated a general decline from 2.5 in 2020 to 2.3 by 2023, indicating a reduction in debt relative to equity. However, this trend reversed in 2024, with the ratio rising sharply to 2.74, before slightly decreasing to 2.61 in 2025.

Adjusted total assets

Adjusted total assets mirrored the pattern seen in total assets but at a lower scale. They decreased from 91,006 million in 2020 to 89,636 million in 2022, then increased substantially to 95,361 million in 2023, peaking at 118,238 million in 2024, and subsequently decreasing to 115,004 million in 2025.

Adjusted equity

Adjusted equity consistently grew throughout the period, beginning at 55,004 million in 2020 and rising steadily to 68,956 million in 2025, with no declines observed in any year. This continuous growth suggests improved net asset quality when adjustments are considered.

Adjusted financial leverage

The adjusted financial leverage ratio decreased from 1.65 in 2020 to a low of 1.49 in 2023, reflecting reduced leverage and potentially lower financial risk. This trend shifted in 2024, with the ratio increasing to 1.73, before a minor decrease to 1.67 occurred in 2025, indicating a slight increase in leverage compared to the previous year.

Summary

Overall, the company’s asset base expanded significantly after 2022, accompanied by steady increases in equity. The reported financial leverage ratios suggest an initial deleveraging phase followed by a modest re-leveraging starting in 2024. The adjusted figures indicate a similar trend but at lower leverage levels, highlighting potential differences in accounting adjustments. Continuous growth in adjusted equity implies strengthening intrinsic financial position, though the increase in leverage ratios in the last two years warrants attention for risk management.

Revenue Trends

Revenue demonstrated a generally upward trajectory over the multi-year period analyzed. Starting at $49,301 million in July 2020, it increased steadily, reaching a peak of $56,998 million by July 2023. A decline followed in July 2024 to $53,803 million, before a subsequent rise to $56,654 million in July 2025. Adjusted revenue followed a similar pattern, increasing from $51,280 million in 2020 to a high of $59,284 million in 2023, then decreasing and stabilizing near $56,958 million in 2025.

Net Income Patterns

Reported net income fluctuated throughout the period without a consistent positive or negative trend. After an initial level of $11,214 million in 2020, it declined slightly to $10,591 million in 2021, recovered to a high of $12,613 million in 2023, then dropped notably to $10,320 million in 2024, followed by a minor decrease to $10,180 million in 2025. Adjusted net income showed a peak at $13,464 million in 2020, followed by a downward trend to $11,344 million in 2022, a rebound to $13,064 million in 2023, and another decline to $9,720 million by 2025.

Profit Margin Analysis

The reported net profit margin generally declined over the period. Starting at 22.75% in 2020, it trended downward to 17.97% by 2025. Despite fluctuations, particularly a peak at 22.91% in 2022, the overall tendency was negative. Adjusted net profit margin mirrored this pattern, peaking at 26.26% in 2020 before decreasing to 17.07% in 2025, indicating diminished profitability relative to revenue in recent years despite some intermittent improvements.

Overall Insights

The financial data reveals a company experiencing growth in revenue but facing challenges in maintaining net income and profit margins. The divergence between rising revenue figures and declining profitability margins suggests increasing costs, pricing pressures, or other operational factors adversely impacting net profits. The volatility in both reported and adjusted figures highlights the presence of non-recurring items or adjustments affecting income, leading to fluctuating adjusted net income and margins. Careful attention to operational efficiency and cost management may be necessary to sustain profitability amid growing revenues.

Net Income

Net income exhibited fluctuations over the observed periods, peaking at 12,613 million USD in July 2023, followed by a notable decline to 10,320 million USD in July 2024 and a further decrease to 10,180 million USD in July 2025. Earlier years showed a relatively stable trend with values ranging from approximately 10,591 to 11,812 million USD.

Equity

Equity demonstrated a consistent upward trajectory throughout all periods, increasing from 37,920 million USD in July 2020 to 46,843 million USD in July 2025. This steady growth indicates an expansion of the company’s net assets over time.

Reported Return on Equity (ROE)

The reported ROE showed a declining trend overall. It started at 29.57% in July 2020, fluctuated moderately reaching 29.7% in July 2022, and then decreased steadily, dropping to 21.73% by July 2025. This decline suggests diminishing efficiency in generating net income from shareholders’ equity.

Adjusted Net Income

Adjusted net income rose initially from 13,464 million USD in July 2020 to a peak of 13,064 million USD in July 2023, followed by a decline to 12,514 million USD in July 2024 and a sharper drop to 9,720 million USD in July 2025. The sharp decrease in the last two periods indicates increased adjustments reducing the reported profitability.

Adjusted Equity

Adjusted equity increased throughout the period, from 55,004 million USD in July 2020 to 68,956 million USD in July 2025. The consistent increase, although at a slower rate in later years, reflects growing adjusted shareholder equity.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE experienced a marked decline over time, starting at 24.48% in July 2020 and gradually decreasing each period to reach 14.1% in July 2025. This trend indicates a significant reduction in the company’s efficiency in earning adjusted net income relative to adjusted equity.

Net Income

Net income exhibited fluctuations over the observed periods. It declined marginally from 11,214 million USD in July 2020 to 10,591 million USD in July 2021, then increased to 11,812 million USD in July 2022 and peaked at 12,613 million USD in July 2023. Subsequently, there was a notable decrease to 10,320 million USD in July 2024, continuing slightly downward to 10,180 million USD in July 2025.

Total Assets

Total assets demonstrated an overall upward trend. Starting at 94,853 million USD in July 2020, they progressed steadily with a minor dip in July 2022 (94,002 million USD) before rising significantly to reach 124,413 million USD by July 2024. A slight decrease followed in July 2025 to 122,291 million USD, but the general movement was an increase in asset base over the six years.

Reported Return on Assets (ROA)

The reported ROA showed variability. It began relatively high at 11.82% in July 2020, decreased progressively to 10.86% in July 2021, improved to a peak of 12.57% in July 2022, and slightly declined to 12.38% in July 2023. Following those years, ROA sharply decreased, reaching 8.29% in July 2024 and marginally increasing to 8.32% in July 2025, suggesting diminishing asset profitability in recent years.

Adjusted Net Income

Adjusted net income portrayed a less consistent pattern compared to net income. It dropped considerably from 13,464 million USD in July 2020 to 11,960 million USD by July 2021 and continued declining to 11,344 million USD in July 2022. Thereafter, it rebounded to 13,064 million USD in July 2023 but experienced a significant decrease over the last two years, with 12,514 million USD in July 2024 and sharply down to 9,720 million USD in July 2025.

Adjusted Total Assets

Adjusted total assets followed a trend similar to total assets. They started at 91,006 million USD in July 2020, showed minor decreases through July 2022 (89,636 million USD), and then increased noticeably to 118,238 million USD by July 2024. A slight decline was observed in July 2025, ending at 115,004 million USD.

Adjusted Return on Assets (ROA)

Adjusted ROA began at a relatively high level of 14.79% in July 2020, declined steadily to 12.83% in July 2021 and 12.66% in July 2022, before increasing to 13.7% in July 2023. A subsequent decline to 10.58% in July 2024 and a further fall to 8.45% in July 2025 indicates a significant reduction in efficiency of asset utilization on an adjusted basis.

Summary Insights

The data reflects an overall growth in the asset base, both reported and adjusted, over the six-year period, albeit with slight reductions in the final year observed. Profitability metrics, as measured by both reported and adjusted ROA, exhibited volatility with a clear downward trajectory starting around July 2023. Net incomes, both reported and adjusted, show a recent declining trend after reaching peaks in the mid-period years. The decline in ROA in conjunction with rising assets suggests that asset growth may not be translating into proportional income generation, indicating potential shifts in operational efficiency or market conditions affecting profitability.