Stock Analysis on Net
Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 27, 2024 29.06% = 13.29% × 2.19
Oct 28, 2023 30.04% = 13.75% × 2.18
Jul 29, 2023 28.44% = 12.38% × 2.30
Apr 29, 2023 27.12% = 11.76% × 2.31
Jan 28, 2023 27.25% = 11.79% × 2.31
Oct 29, 2022 28.56% = 12.36% × 2.31
Jul 30, 2022 29.70% = 12.57% × 2.36
Apr 30, 2022 29.72% = 12.94% × 2.30
Jan 29, 2022 29.94% = 12.54% × 2.39
Oct 30, 2021 26.69% = 11.87% × 2.25
Jul 31, 2021 25.66% = 10.86% × 2.36
May 1, 2021 25.41% = 10.88% × 2.34
Jan 23, 2021 25.89% = 10.60% × 2.44
Oct 24, 2020 27.42% = 11.01% × 2.49
Jul 25, 2020 29.57% = 11.82% × 2.50
Apr 25, 2020 30.20% = 11.80% × 2.56
Jan 25, 2020 31.11% = 12.22% × 2.54
Oct 26, 2019 31.95% = 11.89% × 2.69
Jul 27, 2019 34.62% = 11.88% × 2.91
Apr 27, 2019 35.91% = 13.59% × 2.64
Jan 26, 2019 31.54% = 12.56% × 2.51
Oct 27, 2018 2.88% = 1.20% × 2.40
Jul 28, 2018 0.25% = 0.10% × 2.52
Apr 28, 2018 — = — × 2.44
Jan 27, 2018 — = — × 2.53
Oct 28, 2017 — = — × 1.99

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 27, 2024 29.06% = 23.49% × 0.57 × 2.19
Oct 28, 2023 30.04% = 23.40% × 0.59 × 2.18
Jul 29, 2023 28.44% = 22.13% × 0.56 × 2.30
Apr 29, 2023 27.12% = 20.89% × 0.56 × 2.31
Jan 28, 2023 27.25% = 21.26% × 0.55 × 2.31
Oct 29, 2022 28.56% = 22.00% × 0.56 × 2.31
Jul 30, 2022 29.70% = 22.91% × 0.55 × 2.36
Apr 30, 2022 29.72% = 23.28% × 0.56 × 2.30
Jan 29, 2022 29.94% = 22.94% × 0.55 × 2.39
Oct 30, 2021 26.69% = 22.44% × 0.53 × 2.25
Jul 31, 2021 25.66% = 21.26% × 0.51 × 2.36
May 1, 2021 25.41% = 20.92% × 0.52 × 2.34
Jan 23, 2021 25.89% = 21.09% × 0.50 × 2.44
Oct 24, 2020 27.42% = 21.76% × 0.51 × 2.49
Jul 25, 2020 29.57% = 22.75% × 0.52 × 2.50
Apr 25, 2020 30.20% = 21.32% × 0.55 × 2.56
Jan 25, 2020 31.11% = 21.44% × 0.57 × 2.54
Oct 26, 2019 31.95% = 21.15% × 0.56 × 2.69
Jul 27, 2019 34.62% = 22.39% × 0.53 × 2.91
Apr 27, 2019 35.91% = 25.76% × 0.53 × 2.64
Jan 26, 2019 31.54% = 25.31% × 0.50 × 2.51
Oct 27, 2018 2.88% = 2.52% × 0.48 × 2.40
Jul 28, 2018 0.25% = 0.22% × 0.45 × 2.52
Apr 28, 2018 — = — × — × 2.44
Jan 27, 2018 — = — × — × 2.53
Oct 28, 2017 — = — × — × 1.99

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Cisco Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 27, 2024 29.06% = 0.84 × 0.97 × 28.80% × 0.57 × 2.19
Oct 28, 2023 30.04% = 0.83 × 0.97 × 28.82% × 0.59 × 2.18
Jul 29, 2023 28.44% = 0.82 × 0.97 × 27.62% × 0.56 × 2.30
Apr 29, 2023 27.12% = 0.80 × 0.97 × 26.73% × 0.56 × 2.31
Jan 28, 2023 27.25% = 0.80 × 0.97 × 27.27% × 0.55 × 2.31
Oct 29, 2022 28.56% = 0.80 × 0.97 × 28.05% × 0.56 × 2.31
Jul 30, 2022 29.70% = 0.82 × 0.98 × 28.78% × 0.55 × 2.36
Apr 30, 2022 29.72% = 0.81 × 0.98 × 29.39% × 0.56 × 2.30
Jan 29, 2022 29.94% = 0.81 × 0.97 × 29.04% × 0.55 × 2.39
Oct 30, 2021 26.69% = 0.80 × 0.97 × 28.84% × 0.53 × 2.25
Jul 31, 2021 25.66% = 0.80 × 0.97 × 27.49% × 0.51 × 2.36
May 1, 2021 25.41% = 0.80 × 0.97 × 27.20% × 0.52 × 2.34
Jan 23, 2021 25.89% = 0.80 × 0.96 × 27.40% × 0.50 × 2.44
Oct 24, 2020 27.42% = 0.81 × 0.96 × 28.05% × 0.51 × 2.49
Jul 25, 2020 29.57% = 0.80 × 0.96 × 29.52% × 0.52 × 2.50
Apr 25, 2020 30.20% = 0.75 × 0.96 × 29.73% × 0.55 × 2.56
Jan 25, 2020 31.11% = 0.76 × 0.95 × 29.66% × 0.57 × 2.54
Oct 26, 2019 31.95% = 0.77 × 0.95 × 29.17% × 0.56 × 2.69
Jul 27, 2019 34.62% = 0.80 × 0.94 × 29.73% × 0.53 × 2.91
Apr 27, 2019 35.91% = 0.91 × 0.94 × 29.89% × 0.53 × 2.64
Jan 26, 2019 31.54% = 0.91 × 0.94 × 29.52% × 0.50 × 2.51
Oct 27, 2018 2.88% = 0.09 × 0.94 × 29.67% × 0.48 × 2.40
Jul 28, 2018 0.25% = 0.01 × 0.93 × 28.34% × 0.45 × 2.52
Apr 28, 2018 — = — × — × — × — × 2.44
Jan 27, 2018 — = — × — × — × — × 2.53
Oct 28, 2017 — = — × — × — × — × 1.99

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Cisco Systems Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 27, 2024 13.29% = 23.49% × 0.57
Oct 28, 2023 13.75% = 23.40% × 0.59
Jul 29, 2023 12.38% = 22.13% × 0.56
Apr 29, 2023 11.76% = 20.89% × 0.56
Jan 28, 2023 11.79% = 21.26% × 0.55
Oct 29, 2022 12.36% = 22.00% × 0.56
Jul 30, 2022 12.57% = 22.91% × 0.55
Apr 30, 2022 12.94% = 23.28% × 0.56
Jan 29, 2022 12.54% = 22.94% × 0.55
Oct 30, 2021 11.87% = 22.44% × 0.53
Jul 31, 2021 10.86% = 21.26% × 0.51
May 1, 2021 10.88% = 20.92% × 0.52
Jan 23, 2021 10.60% = 21.09% × 0.50
Oct 24, 2020 11.01% = 21.76% × 0.51
Jul 25, 2020 11.82% = 22.75% × 0.52
Apr 25, 2020 11.80% = 21.32% × 0.55
Jan 25, 2020 12.22% = 21.44% × 0.57
Oct 26, 2019 11.89% = 21.15% × 0.56
Jul 27, 2019 11.88% = 22.39% × 0.53
Apr 27, 2019 13.59% = 25.76% × 0.53
Jan 26, 2019 12.56% = 25.31% × 0.50
Oct 27, 2018 1.20% = 2.52% × 0.48
Jul 28, 2018 0.10% = 0.22% × 0.45
Apr 28, 2018 — = — × —
Jan 27, 2018 — = — × —
Oct 28, 2017 — = — × —

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Cisco Systems Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 27, 2024 13.29% = 0.84 × 0.97 × 28.80% × 0.57
Oct 28, 2023 13.75% = 0.83 × 0.97 × 28.82% × 0.59
Jul 29, 2023 12.38% = 0.82 × 0.97 × 27.62% × 0.56
Apr 29, 2023 11.76% = 0.80 × 0.97 × 26.73% × 0.56
Jan 28, 2023 11.79% = 0.80 × 0.97 × 27.27% × 0.55
Oct 29, 2022 12.36% = 0.80 × 0.97 × 28.05% × 0.56
Jul 30, 2022 12.57% = 0.82 × 0.98 × 28.78% × 0.55
Apr 30, 2022 12.94% = 0.81 × 0.98 × 29.39% × 0.56
Jan 29, 2022 12.54% = 0.81 × 0.97 × 29.04% × 0.55
Oct 30, 2021 11.87% = 0.80 × 0.97 × 28.84% × 0.53
Jul 31, 2021 10.86% = 0.80 × 0.97 × 27.49% × 0.51
May 1, 2021 10.88% = 0.80 × 0.97 × 27.20% × 0.52
Jan 23, 2021 10.60% = 0.80 × 0.96 × 27.40% × 0.50
Oct 24, 2020 11.01% = 0.81 × 0.96 × 28.05% × 0.51
Jul 25, 2020 11.82% = 0.80 × 0.96 × 29.52% × 0.52
Apr 25, 2020 11.80% = 0.75 × 0.96 × 29.73% × 0.55
Jan 25, 2020 12.22% = 0.76 × 0.95 × 29.66% × 0.57
Oct 26, 2019 11.89% = 0.77 × 0.95 × 29.17% × 0.56
Jul 27, 2019 11.88% = 0.80 × 0.94 × 29.73% × 0.53
Apr 27, 2019 13.59% = 0.91 × 0.94 × 29.89% × 0.53
Jan 26, 2019 12.56% = 0.91 × 0.94 × 29.52% × 0.50
Oct 27, 2018 1.20% = 0.09 × 0.94 × 29.67% × 0.48
Jul 28, 2018 0.10% = 0.01 × 0.93 × 28.34% × 0.45
Apr 28, 2018 — = — × — × — × —
Jan 27, 2018 — = — × — × — × —
Oct 28, 2017 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Cisco Systems Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 27, 2024 23.49% = 0.84 × 0.97 × 28.80%
Oct 28, 2023 23.40% = 0.83 × 0.97 × 28.82%
Jul 29, 2023 22.13% = 0.82 × 0.97 × 27.62%
Apr 29, 2023 20.89% = 0.80 × 0.97 × 26.73%
Jan 28, 2023 21.26% = 0.80 × 0.97 × 27.27%
Oct 29, 2022 22.00% = 0.80 × 0.97 × 28.05%
Jul 30, 2022 22.91% = 0.82 × 0.98 × 28.78%
Apr 30, 2022 23.28% = 0.81 × 0.98 × 29.39%
Jan 29, 2022 22.94% = 0.81 × 0.97 × 29.04%
Oct 30, 2021 22.44% = 0.80 × 0.97 × 28.84%
Jul 31, 2021 21.26% = 0.80 × 0.97 × 27.49%
May 1, 2021 20.92% = 0.80 × 0.97 × 27.20%
Jan 23, 2021 21.09% = 0.80 × 0.96 × 27.40%
Oct 24, 2020 21.76% = 0.81 × 0.96 × 28.05%
Jul 25, 2020 22.75% = 0.80 × 0.96 × 29.52%
Apr 25, 2020 21.32% = 0.75 × 0.96 × 29.73%
Jan 25, 2020 21.44% = 0.76 × 0.95 × 29.66%
Oct 26, 2019 21.15% = 0.77 × 0.95 × 29.17%
Jul 27, 2019 22.39% = 0.80 × 0.94 × 29.73%
Apr 27, 2019 25.76% = 0.91 × 0.94 × 29.89%
Jan 26, 2019 25.31% = 0.91 × 0.94 × 29.52%
Oct 27, 2018 2.52% = 0.09 × 0.94 × 29.67%
Jul 28, 2018 0.22% = 0.01 × 0.93 × 28.34%
Apr 28, 2018 — = — × — × —
Jan 27, 2018 — = — × — × —
Oct 28, 2017 — = — × — × —

Based on: 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26), 10-K (reporting date: 2019-07-27), 10-Q (reporting date: 2019-04-27), 10-Q (reporting date: 2019-01-26), 10-Q (reporting date: 2018-10-27), 10-K (reporting date: 2018-07-28), 10-Q (reporting date: 2018-04-28), 10-Q (reporting date: 2018-01-27), 10-Q (reporting date: 2017-10-28).

The primary reason for the increase in net profit margin ratio over Q2 2024 is the increase in effect of taxes measured by tax burden ratio.