Cisco Systems Inc. (CSCO)

Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Cisco Systems Inc., long-term (investment) activity ratios

	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
Net fixed asset turnover	14.45	14.05	14.75	14.50	14.63	13.54
Total asset turnover	0.37	0.40	0.43	0.45	0.48	0.50
Equity turnover	0.73	0.77	0.82	0.83	0.82	0.90

Source: Based on data from Cisco Systems Inc. Annual Reports

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Cisco Systems Inc.'s net fixed asset turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Cisco Systems Inc.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	Cisco Systems Inc.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Cisco Systems Inc., net fixed asset turnover calculation, comparison to benchmarks

	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
Selected Financial Data (USD $ in millions)
Revenue	48,005	49,247	49,161	47,142	48,607	46,061
Property and equipment, net	3,322	3,506	3,332	3,252	3,322	3,402
Ratio
Net fixed asset turnover¹	14.45	14.05	14.75	14.50	14.63	13.54
Benchmarks
Net Fixed Asset Turnover, Competitors
Apple Inc.	6.79	7.98	10.40	8.86	10.30	10.13
Applied Materials Inc.	13.64	11.55	10.83	10.54	8.83	9.58
Broadcom Ltd.	6.79	5.28	4.67	3.69	3.81	4.70
HP Inc.	27.72	27.79	9.32	9.83	9.80	10.07
Intel Corp.	1.53	1.64	1.74	1.68	1.68	–
NVIDIA Corp.	13.26	10.75	8.40	7.09	7.43	–
Qualcomm Inc.	6.93	10.21	9.98	10.65	8.30	6.71
Texas Instruments Inc.	5.62	5.32	5.01	4.59	3.59	–
Net Fixed Asset Turnover, Sector
Technology Hardware & Equipment	5.20	5.68	6.52	5.95	6.11	–
Net Fixed Asset Turnover, Industry
Technology	4.45	4.95	5.74	5.70	6.11	–

Source: Based on data from Cisco Systems Inc. Annual Reports

2017 Calculations

¹ Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 48,005 ÷ 3,322 = 14.45

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Cisco Systems Inc.'s net fixed asset turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Cisco Systems Inc., total asset turnover calculation, comparison to benchmarks

	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
Selected Financial Data (USD $ in millions)
Revenue	48,005	49,247	49,161	47,142	48,607	46,061
Total assets	129,818	121,652	113,481	105,134	101,191	91,759
Ratio
Total asset turnover¹	0.37	0.40	0.43	0.45	0.48	0.50
Benchmarks
Total Asset Turnover, Competitors
Apple Inc.	0.61	0.67	0.80	0.79	0.83	0.89
Applied Materials Inc.	0.75	0.74	0.63	0.69	0.62	0.72
Broadcom Ltd.	0.32	0.26	0.64	0.41	0.74	0.83
HP Inc.	1.58	1.66	0.97	1.08	1.06	1.11
Intel Corp.	0.51	0.52	0.54	0.61	0.57	–
NVIDIA Corp.	0.70	0.68	0.65	0.57	0.67	–
Qualcomm Inc.	0.34	0.45	0.50	0.55	0.55	0.44
Texas Instruments Inc.	0.85	0.81	0.80	0.74	0.64	–
Total Asset Turnover, Sector
Technology Hardware & Equipment	0.57	0.60	0.70	0.72	0.74	–
Total Asset Turnover, Industry
Technology	0.51	0.55	0.61	0.63	0.67	–

Source: Based on data from Cisco Systems Inc. Annual Reports

2017 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 48,005 ÷ 129,818 = 0.37

Ratio	Description	The company
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Cisco Systems Inc.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Cisco Systems Inc., equity turnover calculation, comparison to benchmarks

	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013	Jul 28, 2012
Selected Financial Data (USD $ in millions)
Revenue	48,005	49,247	49,161	47,142	48,607	46,061
Total Cisco shareholders' equity	66,137	63,586	59,698	56,654	59,120	51,286
Ratio
Equity turnover¹	0.73	0.77	0.82	0.83	0.82	0.90
Benchmarks
Equity Turnover, Competitors
Apple Inc.	1.71	1.68	1.96	1.64	1.38	1.32
Applied Materials Inc.	1.55	1.50	1.27	1.15	1.06	1.21
Broadcom Ltd.	0.87	0.70	1.45	1.32	0.87	0.98
HP Inc.	–	–	3.72	4.17	4.12	5.36
Intel Corp.	0.91	0.90	0.91	1.00	0.90	–
NVIDIA Corp.	1.20	1.12	1.06	0.93	0.89	–
Qualcomm Inc.	0.73	0.74	0.80	0.68	0.69	0.57
Texas Instruments Inc.	1.45	1.28	1.31	1.26	1.13	–
Equity Turnover, Sector
Technology Hardware & Equipment	1.37	1.34	1.54	1.44	1.32	–
Equity Turnover, Industry
Technology	1.16	1.14	1.27	1.23	1.23	–

Source: Based on data from Cisco Systems Inc. Annual Reports

2017 Calculations

¹ Equity turnover = Revenue ÷ Total Cisco shareholders' equity
= 48,005 ÷ 66,137 = 0.73

Ratio	Description	The company
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	Cisco Systems Inc.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017.