Analysis of Geographic Areas
Cisco Systems Inc. operates in 2 regions: United States and International.
Area Asset Turnover
Cisco Systems Inc., asset turnover by geographic area
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | |
|---|---|---|---|---|---|---|
| United States | 12.74 | 14.15 | 13.32 | 11.92 | 11.21 | 12.09 |
| International | 27.80 | 28.74 | 24.93 | 19.07 | 22.18 | 46.85 |
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).
- United States Asset Turnover
- The asset turnover ratio in the United States displayed some fluctuations over the observed periods. Starting at 12.09 in July 2019, it decreased to 11.21 in July 2020, indicating a slight reduction in efficiency. Subsequently, it rose moderately to 11.92 in July 2021. A more notable increase occurred in July 2022, reaching 13.32, followed by a peak at 14.15 in July 2023. However, in the latest period of July 2024, the ratio decreased to 12.74. Overall, the trend shows some variability but an underlying recovery and improvement after 2020, although the latest figure suggests a slight pullback in asset efficiency in the U.S. segment.
- International Asset Turnover
- The international asset turnover ratio experienced a significant decline from July 2019 to July 2021. Beginning at a high of 46.85 in July 2019, it sharply fell to 22.18 in July 2020 and continued declining to 19.07 in July 2021. Post this decline, the ratio showed signs of recovery, increasing to 24.93 in July 2022 and further rising to 28.74 in July 2023. In the most recent period, July 2024, there was a slight decrease to 27.8. Despite the large initial drop, the international turnover ratio exhibited a positive rebound over the latter periods but did not return to its original high level.
- Comparative Insights
- Across the two geographic areas, the United States consistently showed a much lower asset turnover ratio compared to the international segment throughout the timeline. The international segment demonstrated higher volatility, with a dramatic initial decline followed by a recovery phase, whereas the U.S. segment showed a more moderate variation with a general upward trend after 2020. The differences in pattern between regions may suggest distinct operational dynamics or market conditions affecting asset utilization efficiency.
Area Asset Turnover: United States
Cisco Systems Inc.; United States; area asset turnover calculation
| 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 | 28,700) | 29,900) | 26,700) | 26,100) | 26,100) | 27,400) |
| Long-lived assets | 2,253) | 2,113) | 2,004) | 2,189) | 2,328) | 2,266) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 12.74 | 14.15 | 13.32 | 11.92 | 11.21 | 12.09 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 28,700 ÷ 2,253 = 12.74
- Revenue Trends
- Revenue in the United States showed a decline from 27,400 million USD in 2019 to 26,100 million USD in 2020, remaining stable in 2021 at 26,100 million USD. In 2022, revenue increased slightly to 26,700 million USD. The largest increase occurred in 2023, reaching 29,900 million USD, followed by a decline to 28,700 million USD in 2024. Overall, revenue demonstrated some volatility with a significant peak in 2023.
- Long-lived Assets Trends
- Long-lived assets decreased from 2,266 million USD in 2019 to 2,189 million USD in 2021, with a low point at 2,004 million USD in 2022. After this decline, assets increased moderately to 2,113 million USD in 2023 and further to 2,253 million USD in 2024. This pattern indicates a contraction in asset base until 2022, followed by a recovery phase.
- Area Asset Turnover Trends
- The area asset turnover ratio started at 12.09 in 2019, decreased slightly to 11.21 in 2020, and then steadily increased through 2021 to 11.92 and 13.32 in 2022. The ratio peaked at 14.15 in 2023 before declining to 12.74 in 2024. This suggests improving efficiency in asset utilization up to 2023, with some reduction in 2024.
- Overall Insights
- The data shows an initial downturn in revenue and assets through 2020 to 2022, corresponding with a recovery phase in both metrics in 2023. Asset turnover efficiency improved notably between 2021 and 2023, indicating better utilization of the asset base during this period. Despite the revenue peak in 2023, a decline in 2024 suggests market or operational challenges. The recovery in long-lived assets and increased turnover ratio generally reflects enhanced operational performance post-2022 decline.
Area Asset Turnover: International
Cisco Systems Inc.; International; area asset turnover calculation
| 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 | 25,103) | 27,098) | 24,857) | 23,718) | 23,201) | 24,504) |
| Long-lived assets | 903) | 943) | 997) | 1,244) | 1,046) | 523) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 27.80 | 28.74 | 24.93 | 19.07 | 22.18 | 46.85 |
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 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 25,103 ÷ 903 = 27.80
- Revenue
- Revenue in the International geographic area exhibits some fluctuations over the examined period. Starting at $24,504 million in 2019, there was a decline to $23,201 million in 2020, followed by a modest increase to $23,718 million in 2021. The revenue then rose more substantially to $24,857 million in 2022 and further to a peak of $27,098 million in 2023. However, in 2024, revenue decreased to $25,103 million, indicating some volatility in the most recent period.
- Long-lived assets
- The value of long-lived assets showed a significant increase between 2019 and 2021, more than doubling from $523 million to $1,244 million. Post-2021, there was a downward trend with assets reducing to $997 million in 2022, $943 million in 2023, and $903 million in 2024, suggesting disposals, depreciation, or adjustments to the asset base in recent years.
- Area asset turnover
- The area asset turnover ratio demonstrates a declining trend from a very high 46.85 in 2019 to a low of 19.07 in 2021. Subsequently, it improved to 24.93 in 2022, then continued to increase to 28.74 in 2023, with a slight decrease to 27.8 in 2024. This indicates an initial reduction in efficiency or asset utilization up to 2021, with enhancements in asset turnover observed from 2022 onwards.
- Overall Insights
- The data reflects a pattern where revenue growth in the International segment experienced some instability, notably with a decline in the most recent year after peaking in 2023. The substantial increase in long-lived assets through 2021, followed by a steady reduction, may have impacted asset utilization efficiency, as reflected by the area asset turnover ratio trends. The initial decline in asset turnover suggests that the increased asset base was not immediately supporting proportional revenue growth. However, improvements after 2021 indicate a positive adjustment in leveraging these assets for revenue generation in subsequent years. The slight revenue decrease in 2024 alongside a stable asset turnover ratio may warrant further investigation into market or operational factors affecting international sales during that period.
Revenue
Cisco Systems Inc., revenue by geographic area
US$ in millions
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | |
|---|---|---|---|---|---|---|
| United States | 28,700) | 29,900) | 26,700) | 26,100) | 26,100) | 27,400) |
| International | 25,103) | 27,098) | 24,857) | 23,718) | 23,201) | 24,504) |
| Total | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) |
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).
- United States Revenue
- The revenue generated in the United States showed some fluctuations over the six-year period. It started at 27,400 million USD in 2019, followed by a decline to 26,100 million USD in 2020 and remained stable at the same level in 2021. In 2022, there was a slight increase to 26,700 million USD, followed by a notable rise to 29,900 million USD in 2023. However, in 2024, the revenue decreased to 28,700 million USD. Overall, the trend indicated a moderate recovery after a dip, although recent data show a slight decline from the peak in 2023.
- International Revenue
- The international revenue also experienced fluctuations but with a different pattern. Starting from 24,504 million USD in 2019, it declined to 23,201 million USD in 2020, then saw a minor increase to 23,718 million USD in 2021. A steady rise occurred in 2022 and 2023 to 24,857 million USD and 27,098 million USD, respectively. However, in 2024, revenue decreased again to 25,103 million USD. The data suggest a recovery trend between 2020 and 2023, followed by a downturn in the most recent year.
- Total Revenue
- Total revenue followed the combined effect of the regional trends. It started at 51,904 million USD in 2019, decreased to 49,301 million USD in 2020, then showed slight improvements to 49,818 million USD in 2021 and 51,557 million USD in 2022. There was a significant increase to 56,998 million USD in 2023, representing the highest value during the period. Nevertheless, it declined to 53,803 million USD in 2024. The total revenue pattern indicates recovery and growth peaks post-2020, although the latest year shows some contraction.
- Overall Analysis
- Both domestic and international revenues experienced decreases in 2020, likely reflecting challenging external conditions. Subsequent years up to 2023 generally showed growth, with 2023 being a peak year across all regions. However, data for 2024 indicate a decrease in revenue in both the United States and international segments, resulting in lower total revenue compared to the previous year. This could suggest emerging pressures or market shifts affecting the company's sales. The patterns highlight a resilient recovery following a downturn but also underscore recent volatility impacting the top-line performance.
Long-lived assets
Cisco Systems Inc., long-lived assets by geographic area
US$ in millions
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | |
|---|---|---|---|---|---|---|
| United States | 2,253) | 2,113) | 2,004) | 2,189) | 2,328) | 2,266) |
| International | 903) | 943) | 997) | 1,244) | 1,046) | 523) |
| Total | 3,156) | 3,056) | 3,001) | 3,433) | 3,374) | 2,789) |
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).
- United States Long-Lived Assets
- Over the six-year period, long-lived assets in the United States exhibit a generally declining trend from 2019 to 2022, decreasing from 2,266 million to 2,004 million US dollars. Following this decline, there is a recovery phase with values increasing to 2,113 million in 2023 and further to 2,253 million in 2024, approaching the initial 2019 level.
- International Long-Lived Assets
- The international segment shows a marked increase in long-lived assets from 2019 to 2021, more than doubling from 523 million to 1,244 million US dollars. This growth is followed by a decline over the next three years, with assets decreasing to 997 million in 2022, 943 million in 2023, and further to 903 million in 2024, indicating a contraction phase after significant expansion.
- Total Long-Lived Assets
- The total long-lived assets reflect the combined effects of the U.S. and international markets. The total value increases substantially from 2,789 million in 2019 to a peak of 3,433 million in 2021. Subsequently, there is a noticeable decrease to 3,001 million in 2022, followed by a slight rebound to 3,056 million in 2023 and 3,156 million in 2024. Despite this fluctuation, total assets remain elevated compared to the 2019 baseline.
- Summary of Trends and Insights
- The data reveals a shift in asset allocation over time with initial international asset accumulation outpacing U.S. assets until 2021. However, the international segment faced a reduction in the following years, while U.S. assets experienced a decline and then a recovery after 2022. The overall total long-lived assets demonstrate growth with intermittent volatility, reflecting possible strategic adjustments, market conditions, or asset revaluations during this period.