Cisco Systems Inc. (NASDAQ:CSCO)

The analysis of the quarterly financial ratios reveals several notable patterns regarding asset and equity utilization over the observed periods.

Net Fixed Asset Turnover

This ratio shows a general upward trend from October 2020 through April 2024, indicating improving efficiency in generating sales from fixed assets. The ratio rose from approximately 19.93 to a peak near 28.96, reflecting enhanced productivity or better utilization of fixed assets during this period. However, after the peak, a gradual decline is observed, with the ratio falling to around 25.67 by October 2025. This decrease may suggest a relative slowdown in fixed asset efficiency or potential asset base growth outpacing sales increases.

Total Asset Turnover

The total asset turnover ratio initially exhibits modest fluctuations around the 0.50 to 0.56 range, demonstrating a stable but moderate level of efficiency in overall asset usage to generate revenue. There is a noticeable peak at about 0.59 in October 2023, pointing to a temporary improvement in asset utilization. Following this peak, the ratio declines more significantly to between 0.43 and 0.48 from early 2024 through October 2025, which may indicate either an increase in asset base relative to sales or a reduction in sales relative to assets.

Equity Turnover

The equity turnover ratio maintains relative stability around 1.2 to 1.3 for most of the observed timeframe, implying steady use of equity capital to generate revenues. Some variability is noted, with a slight dip below 1.2 starting in mid-2023 through early 2025, followed by a modest rebound towards 1.23 near the end of the period. This pattern suggests that while equity efficiency experienced minor fluctuations, the overall capacity to generate sales from equity did not undergo drastic changes.

In summary, the company demonstrated improvements in fixed asset efficiency up to early 2024, followed by a moderate decline. Total asset turnover similarly peaked in late 2023 before dropping to lower levels in subsequent periods, signaling possible changes in asset management or sales growth. Equity turnover remained relatively constant, reflecting consistent use of equity in generating revenues throughout the timeframe.

Revenue Trends

Over the observed periods, revenue generally exhibits a positive upward trend. Starting at approximately $11.9 billion, revenue initially increases steadily, peaking near $15.2 billion in mid-2023. This peak is followed by a noticeable dip in late 2023 and early 2024, with revenue decreasing to around $12.7 billion. Subsequently, revenue recovers and rises again, reaching levels close to $14.9 billion by late 2025. This demonstrates some volatility but an overall growth pattern over the five-year span.

Property and Equipment, Net

The net value of property and equipment shows a gradual decline from $2.4 billion in late 2020 to around $2.0 billion by early 2024. After this trough, there is a modest recovery with values climbing back to approximately $2.2 billion by late 2025. This pattern suggests a period of asset depreciation or divestment followed by reinvestment or acquisition of fixed assets in the latter periods.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio consistently increases over most of the period, rising from nearly 20 at the start to a peak of about 29 in late 2023. This indicates improving efficiency in utilizing fixed assets to generate revenue. After reaching this peak, the ratio fluctuates but remains generally high, ranging between 25.4 and 27.7 in the subsequent periods. This sustained level suggests continued effective asset utilization, despite some variability.

Combined Insights

The data reveals an overall improvement in revenue generation relative to the fixed asset base, as demonstrated by the increasing net fixed asset turnover. The initial decline and later recovery of property and equipment net value might reflect strategic asset management decisions, possibly involving asset refreshment or optimization. The revenue dip around late 2023 to early 2024 could be linked to external factors or transitional business conditions, but the subsequent recovery indicates resilience. Efficiency in asset use appears to have strengthened consistently, supporting sustainable revenue growth despite fluctuations in the asset base.

The financial data reveals several notable trends in the company's performance and asset utilization over the reported periods.

Revenue

Overall, revenue demonstrates a general upward trend from October 2020 through approximately July 2023, increasing from 11,929 million USD to a peak of 15,203 million USD. After this peak, a decline is observed, with revenue dropping to lows around 12,700 million USD in early 2024 before gradually recovering again towards 14,883 million USD by October 2025. This pattern indicates a phase of growth followed by a noticeable contraction and subsequent moderate recovery in sales or service income.

Total Assets

The total assets maintain relative stability with minor fluctuations between October 2020 and early 2023, ranging roughly between 92,797 million USD and 101,852 million USD. From early 2023 onwards, a significant increase occurs, peaking at approximately 124,413 million USD in January 2025. In the final few quarters, total assets experience a slight decline but remain elevated relative to earlier years, suggesting either acquisition of new assets, investments, or capital expansion efforts.

Total Asset Turnover

The asset turnover ratio, which measures efficiency in using assets to generate revenue, remains fairly stable between 0.50 and 0.59 in the initial periods through early 2024. Following this period, a sharp decline is visible, with the ratio dropping to around 0.43 by early and mid-2024, indicating a reduced efficiency in asset utilization. Modest improvement occurs subsequently, with ratios climbing back towards 0.48 by late 2025. This downward shift coincides with the period where total assets increased significantly, while revenue experienced a temporary drop, thereby diluting asset turnover.

In summary, the company's revenue exhibited growth until mid-2023, followed by a contraction and recovery phase. Total assets remained stable initially without significant expansion but surged notably starting in early 2023, implying strategic asset accumulation. The asset turnover ratio's decline after early 2024 suggests that the added assets did not immediately translate into proportional revenue gains, highlighting a potential area for operational focus to enhance efficiency and return on asset investments. The later partial rebound in turnover ratio may reflect efforts to optimize asset use or recovery in revenue generation.

The company's revenue demonstrates a generally positive trend over the periods observed, showing periodic fluctuations but with an overall upward trajectory. Starting from just under 12 billion US dollars, the revenue gradually increased to peak levels exceeding 15 billion US dollars before experiencing a moderate decline and stabilization in recent quarters. This pattern indicates growth with some variability, potentially influenced by market conditions or operational adjustments. The resurgence in the latter periods suggests resilience and recovery.

Total equity displays a consistent increase throughout most of the timeline, beginning at approximately 38 billion US dollars and steadily rising past 46 billion US dollars. There is a minor fluctuation around the early 2022 periods, where equity slightly dips and then resumes its growth. This steady accumulation of equity could reflect retained earnings, reinvestment strategies, or capital inflows enhancing the company's financial stability and shareholder value.

The equity turnover ratio remains relatively stable, fluctuating within a narrow range from approximately 1.17 to 1.31. Notably, a slightly higher equity turnover is recorded in early 2022, followed by a gradual decline towards the middle of the timeline before stabilizing again towards the later periods. This ratio's stability indicates consistent efficiency in utilizing equity to generate revenue, suggesting effective asset management practices despite the external or internal changes impacting revenue and equity levels.

Revenue Trends

General upward movement with periodic peaks and troughs, ranging from about 12 billion to above 15 billion US dollars; recent quarters indicate stabilization after a peak.

Total Equity

Progressive growth with minor fluctuations; equity increased from roughly 38 billion to close to 47 billion US dollars over the timeline, indicating strengthening financial position.

Equity Turnover Ratio

Relatively stable ratio fluctuating around 1.2 to 1.3, implying consistent efficiency in generating revenue from equity.

Overall, the financial indicators suggest a company with solid revenue growth and equity accumulation, alongside consistent use of equity to produce sales. The data points to sound financial health with cautious but steady expansion and resilience against short-term fluctuations.