Cisco Systems Inc. (NASDAQ:CSCO)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates a generally increasing trend from the earliest available data in late 2018 through to mid-2024. Starting around 18.61, the ratio steadily rose with minor fluctuations, reaching a peak slightly above 28.96 by mid-2023. After this peak, a slight decline is observed towards the end of the data period, where it decreases to approximately 26.79 by late 2024. Overall, this indicates improved efficiency in generating sales from fixed assets over time, although there is some moderation in this efficiency in the latest quarters.

Total Asset Turnover

The total asset turnover ratio generally fluctuates within a narrow range over the observed periods. Initially, the ratio starts near 0.53 in late 2018 and exhibits minor increases and decreases over the following years, peaking near 0.59 in early 2024. However, there is a noticeable downward trend beginning in early 2024, with the ratio falling to approximately 0.43 by mid-2024 before showing a slight improvement at the end of the period. This pattern suggests relatively stable asset utilization with some recent challenges or changes in asset management or sales generation efficiency.

Equity Turnover

The equity turnover ratio shows a declining trend from late 2018 through early 2021, moving from around 1.55 down to approximately 1.19. Following this period, the ratio remains relatively steady with minor fluctuations between 1.17 and 1.31. Toward the end of the data set, a small uptick is observed, concluding near 1.21 in late 2024. This trend may reflect changes in how effectively equity is being used to generate revenue, with initial decreases possibly indicating more equity relative to sales, followed by stabilization in the more recent periods.

The financial data reveals notable trends in revenue, property and equipment net values, and fixed asset turnover over the observed periods.

Revenue

The revenue shows fluctuations across the periods with no consistent growth pattern. Initial revenue starts at a high point around 13,072 million US dollars, followed by some decline and recovery phases. Notably, there is a dip around early 2020, potentially reflecting external economic conditions during that time. Subsequently, the revenue experiences an upward trend reaching peaks near 15,203 million US dollars in mid-2023 before moderate declines occur towards the later periods. This pattern might suggest seasonality or external market influences affecting sales performance.

Property and Equipment, Net

The net value of property and equipment exhibits a gradual and steady decline over the entire timeline, starting approximately at 2,956 million US dollars and decreasing to around 1,992 million by mid-2024. This downward trend indicates possible asset disposals, depreciation outpacing new investments, or strategy shifts reducing fixed assets. The consistency of this reduction suggests a strategic move to optimize or downsize capital assets rather than volatility in asset valuation.

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates a clear, steady upward trajectory. Beginning with values near 18.61, the ratio increases progressively to surpass 27.00 in recent quarters. This rising ratio implies improved efficiency in generating revenue from fixed assets, possibly due to better asset management, enhanced operational efficiencies, or a shift to less capital-intensive business segments. It also signals that the company can generate more revenue per unit of fixed asset, which is consistent with the observed decline in net fixed assets, suggesting improved utilization of existing assets.

Overall, the data illustrates a company experiencing revenue variability while managing to improve asset utilization efficiency amidst decreasing property and equipment net values. The improvements in fixed asset turnover ratio, in the context of lower net fixed assets, suggest operational efficiencies and potentially strategic realignment in asset usage or capital investment.

The revenue of the company exhibits fluctuations throughout the analyzed quarters, with values oscillating between approximately $11,983 million and $15,203 million. While some quarters show incremental growth, others reflect slight contractions, indicating moderate volatility in revenue generation. The highest revenue points occur in the quarters ending July 2023, with a peak near $15,203 million, followed by a decrease in subsequent quarters, ending near $14,149 million in July 2024.

Total assets demonstrate a gradual decline from the initial figure of approximately $105,429 million toward lower values around $90,000 million in mid-periods, followed by recovery and growth reaching about $124,413 million in January 2025. This rebound signals potential asset accumulation after a phase of contraction, suggesting strategic asset management or acquisition activities in the latter part of the timeline.

Total asset turnover ratios, available for most quarters, indicate a generally stable efficiency in asset utilization, hovering around 0.5 to 0.6. There is a noticeable dip to approximately 0.43–0.46 in the latest quarters, possibly reflecting a rapid increase in assets relative to revenue or a slowdown in revenue growth efficiency. This decline in turnover ratio warrants monitoring, as it may suggest diminishing returns from asset usage or recent investments not yet translating into proportional revenue.

Revenue Trend

Overall fluctuating with moderate growth peaks around mid-2023 followed by a slight decline.

Total Assets

Initial decrease followed by a sustained increase, ending with a marked asset base expansion.

Total Asset Turnover

Relatively stable with a recent decline, indicating reduced efficiency in asset conversion to revenue.

In summary, the company displays cyclical revenue performance coupled with strategic asset growth. The declining asset turnover ratio in recent periods suggests a need for focused attention on the efficiency of employing assets to generate sales, which could impact future profitability if the trend persists.

Revenue Trends

Revenue figures exhibit fluctuations over the analyzed periods. Starting at $13,072 million in October 2018, revenue experienced a slight decline in early 2019, reaching a low point around $11,983 million in April 2020. Subsequently, there was a recovery and an upward trend, peaking at $15,203 million in July 2023. More recently, revenue has shown modest decline and stabilization, ending near $14,149 million in July 2024. This indicates a period of volatility with recovery and growth in the latter periods analyzed.

Total Equity Movements

Total equity displays a downward trend from $43,848 million in October 2018 to a trough of approximately $33,571 million around July 2019. After this low point, equity gradually increased, reaching $45,210 million by January 2024, before slightly decreasing again towards $45,935 million in July 2024. The general pattern suggests initial contraction followed by steady rebuilding of equity over time.

Equity Turnover Analysis

Equity turnover ratios, although not available for the earliest periods, begin at 1.55 in April 2019 and show a gradual decline over the following quarters. The ratio falls to approximately 1.18 by January 2025, indicating a decrease in the frequency with which equity is being used to generate revenue. Minor fluctuations appear mid-series, but the overall trend points to a mild reduction in turnover efficiency.

Insights

The financial data outlines a period marked by revenue volatility and equity contraction early on, followed by recovery and growth phases. While total equity has stabilized and grown over the longer term, the decline in equity turnover may suggest either an increase in equity base relative to revenue or a slight slowing in revenue generation efficiency with respect to shareholders' equity. The interplay of these metrics signals cautious improvement in financial health accompanied by potential challenges in optimizing equity utilization.