Cisco Systems Inc. (NASDAQ:CSCO)

Net Fixed Asset Turnover

This ratio demonstrates an overall upward trend from 20.1 in 2020 to a peak of 27.34 in 2023, followed by a slight decline to 26.81 in 2025. The increase suggests improving efficiency in the use of net fixed assets to generate sales over the period, with a minor fluctuation in the last two years.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This alternative measure also shows growth from 14.61 in 2020 to 18.65 in 2023. However, unlike the net fixed asset turnover without leases, this ratio declines more noticeably after the 2023 peak, falling to 16.59 in 2025. This indicates that when including operating lease assets, asset utilization efficiency improved until 2023 but faced a moderate downturn thereafter.

Total Asset Turnover

The total asset turnover remained relatively stable from 2020 (0.52) through 2023 (0.56), indicating consistent overall asset efficiency in generating revenues. However, a decline is observed in 2024 (0.43), with a modest recovery in 2025 (0.46), pointing to a dip in overall asset utilization efficiency during this period.

Equity Turnover

Equity turnover ratios show a slight decrease from 1.3 in 2020 to 1.21 in 2025, with small fluctuations in between. The stability around the 1.2 to 1.3 range suggests that the company’s effectiveness in generating sales relative to shareholders' equity has remained fairly steady, though with a mild downward tendency near the end of the period.

Revenue Trends

Over the six-year period, revenue demonstrated a generally upward trajectory with some variability. Beginning at $49,301 million in 2020, revenue increased modestly to $49,818 million in 2021 and further to $51,557 million in 2022. A more pronounced rise occurred in 2023, reaching $56,998 million. However, 2024 saw a decline to $53,803 million, followed by a recovery to $56,654 million in 2025. The data indicates resilience in revenue generation with occasional fluctuations likely influenced by market or operational factors.

Property and Equipment, Net Trends

The net value of property and equipment showed a declining trend from 2020 to 2022, decreasing from $2,453 million to $1,997 million. This decline was followed by stabilization and a slight increase, with values rising to $2,085 million in 2023, $2,090 million in 2024, and reaching $2,113 million in 2025. This pattern suggests an initial period of asset reduction or depreciation outpacing additions, followed by renewed investment or asset retention in later years.

Net Fixed Asset Turnover Ratio Trends

The net fixed asset turnover ratio exhibited a consistent upward trend throughout the period, starting at 20.1 in 2020 and increasing to a peak of 27.34 in 2023. Although there was a slight decline to 25.74 in 2024, the ratio rose again to 26.81 in 2025. This upward trend signals improved efficiency in utilizing fixed assets to generate revenue, reflecting enhanced asset management or operational effectiveness despite fluctuations in asset base and revenue.

Overall Insights

The data collectively indicates a company that is effectively leveraging its fixed assets to drive revenue growth. Despite variations in revenue and asset base, the improving net fixed asset turnover ratio underscores efficiency gains. The initial reduction in property and equipment net value suggests an asset optimization phase, with subsequent stabilization indicative of strategic reinvestment. Revenue fluctuations highlight possible market dynamics or operational adjustments impacting sales performance. Overall, the trends reflect balanced asset management paired with competitive revenue generation capabilities.

The financial data reveals several notable trends over the six-year period under review. Revenue demonstrates an overall upward trajectory with some fluctuations. Starting at $49,301 million in 2020, revenue experienced gradual increases through 2022 and a more pronounced rise in 2023, peaking at $56,998 million. However, there was a decline in 2024 to $53,803 million, followed by a recovery to $56,654 million in 2025. This indicates growth momentum with some volatility likely influenced by market or operational factors.

The net property and equipment, including operating lease right-of-use assets, showed a somewhat stable but slightly fluctuating pattern. Beginning at $3,374 million in 2020, the value rose modestly to $3,433 million in 2021, then declined to $3,000 million in 2022. After 2022, the net property and equipment assets increased gradually each year, reaching $3,414 million by 2025. This suggests periodic adjustments in capital investment or asset management, possibly reflecting strategic decisions on asset utilization or investment cycles.

Regarding asset efficiency, the net fixed asset turnover ratio illustrates how effectively the company utilizes its net fixed assets to generate revenue. The ratio started at 14.61 in 2020, showed a slight dip to 14.51 in 2021, then increased significantly to 17.19 in 2022. The ratio reached its highest point of 18.65 in 2023, indicating improved efficiency in asset utilization that year. Although it declined somewhat to 17.05 in 2024 and further to 16.59 in 2025, these values remain higher than those seen in the earlier years, suggesting a sustained improvement in asset turnover efficiency compared to the initial period.

Overall, the company exhibits revenue growth combined with moderately managed increases in property and equipment assets. The efficiency ratios indicate an enhanced ability to generate sales from fixed assets over the period, despite some minor reversals in the latest years. These observations imply a focus on optimizing asset utilization alongside maintaining revenue growth, although the dip in revenue in 2024 may warrant further analysis to understand underlying causes.

The financial data exhibits several notable trends over the analyzed periods, reflecting the company's operational performance and asset management efficiency.

Revenue

Revenue demonstrates an overall upward trajectory from July 25, 2020, to July 26, 2025. The initial periods show a steady increase from $49,301 million in 2020 to $56,998 million in 2023. There is a slight decline observed in 2024 where revenue decreased to $53,803 million, followed by a rebound to $56,654 million in 2025. The fluctuations in revenue suggest some variability in sales or market conditions affecting the company during the mid-term period.

Total Assets

Total assets have generally increased over the period, moving from $94,853 million in 2020 to a peak of $124,413 million in 2024, before experiencing a minor reduction to $122,291 million in 2025. This upward trend indicates an expansion in the company's asset base, which may be reflective of investment in capacity, acquisitions, or other capital expenditures.

Total Asset Turnover

The total asset turnover ratio, which measures the efficiency of asset usage to generate revenue, fluctuates modestly throughout the periods under review. Starting at 0.52 in 2020, the ratio remains relatively stable through 2023 with minor increases, reaching 0.56. However, a notable decrease occurs in 2024 to 0.43, implying a decline in asset efficiency despite higher asset levels. In 2025, the ratio slightly improves to 0.46 but remains below earlier years, signaling ongoing challenges in optimizing asset utilization to support revenue generation.

Overall, the company maintains growth in revenue and asset base but faces a temporary downturn in asset efficiency towards the later years. This suggests the need for review of asset management strategies to enhance returns on investments corresponding to scaled asset levels.

Revenue Trends

Revenue demonstrated an overall increasing trend from 2020 to 2025, rising from approximately 49.3 billion US dollars in 2020 to around 56.7 billion US dollars in 2025. There was a steady growth observed each year except for a slight dip in 2024 where revenue decreased to 53.8 billion US dollars from 57.0 billion US dollars in 2023. This fluctuation indicates some volatility in sales or service income during that year, though the subsequent recovery by 2025 suggests resilience or effective corrective actions.

Equity Trends

Equity increased consistently over the six-year period from approximately 37.9 billion US dollars in 2020 to 46.8 billion US dollars in 2025. Despite small fluctuations, such as a decrease in 2022 compared to 2021, the general direction was upward, indicating growth in shareholder value or retained earnings accumulation. The equity base's steady rise complements the revenue growth and supports the firm’s improving financial health.

Equity Turnover Analysis

The equity turnover ratio, which measures how efficiently equity is used to generate revenue, fluctuated slightly but remained relatively stable between 1.18 and 1.3 across the given years. The ratio started at 1.3 in 2020, dipped to its lowest of 1.18 in 2024, and rose marginally to 1.21 in 2025. This stability suggests consistent efficiency in the utilization of equity to produce revenue, although the dip in 2024 aligns with the decrease in revenue for the same year.

Overall Insights

The data indicates a company maintaining steady growth and financial robustness with increasing revenue and equity over the years. Minor fluctuations in revenue and equity turnover in 2024 point to a period of slight operational challenges or market conditions affecting performance; however, the recovery in 2025 signifies effective management or adaptation. The relatively stable equity turnover ratio underscores consistent operational efficiency in leveraging equity to generate revenue.