Cisco Systems Inc. (NASDAQ:CSCO)

Net Fixed Asset Turnover

There is a clear upward trend in the net fixed asset turnover ratio starting from the earliest recorded value in October 2019, with the ratio increasing from 20.1 to a peak of approximately 28.96 in January 2024. After reaching this peak, a slight decline is observed in the subsequent quarters, with values settling around 26.79 to 27.34 by mid-2025. Overall, the ratio demonstrates a long-term improvement, indicating a progressively more efficient use of fixed assets to generate revenue over this period.

Total Asset Turnover

The total asset turnover ratio remains relatively stable with minor fluctuations between 0.45 and 0.59 throughout the recorded quarters. Initially, the ratio hovers around 0.50 to 0.56, showing a modest increase up to 0.59 in early 2024, which suggests a slight improvement in utilizing total assets to generate sales. However, after early 2024, a notable decline occurs, with the ratio dropping and then stabilizing around 0.45 to 0.46 by mid-2025. This pattern points to a peak in asset efficiency followed by a decrease and stabilization at a lower level.

Equity Turnover

The equity turnover ratio exhibits a gradual decrease from around 1.30 in late 2019 to approximately 1.17 by mid-2024. This indicates a slight reduction in how effectively the equity base is being used to generate sales. Toward the end of the period, the ratio marginally recovers to around 1.19 to 1.21. Despite fluctuations, the changes are relatively moderate, demonstrating a generally consistent, though somewhat declining, efficiency in using shareholders’ equity.

The revenue exhibits a general upward trend over the analyzed periods, despite some fluctuations. Starting at $13,159 million in October 2019, revenue dips notably by January 2020 and remains relatively stable through mid-2020. From late 2020 onward, a progressive recovery and growth phase are evident, with revenue reaching peaks around $15,203 million in July 2023 before experiencing a decline towards early 2024. The latter part of the data suggests renewed growth, culminating in revenue of approximately $14,673 million by October 2025.

The net value of property and equipment shows a steady decline over the period. Beginning at $2,669 million in late 2019, there is a gradual reduction through mid-2022, bottoming near $1,964 million in early 2023. Following this trough, the asset base stabilizes and slightly increases towards the end of the period, ending around $2,113 million in October 2025. This trend may reflect ongoing depreciation or asset disposals, partially offset by new investments or revaluations in later periods.

The net fixed asset turnover ratio, a measure of revenue generated per unit of fixed assets, displays a marked improvement over time. Although data for initial quarters are missing, the available figures from mid-2020 show a rising trajectory from 20.1 to a peak near 28.96 in January 2024. This suggests enhanced efficiency in utilizing fixed assets to generate revenue, potentially driven by operational improvements or shifts towards less capital-intensive revenue streams. After the peak, the ratio slightly fluctuates but remains elevated relative to early figures, indicating sustained asset productivity.

Revenue

Experiences a mild decline initially in early 2020, stabilizes, followed by steady growth peaking in mid-2023; slight decrease observed in early 2024 with signs of recovery into late 2025.

Property and Equipment, net

Declines steadily from late 2019 through early 2023, indicating asset depreciation or disposals; stabilizes and shows minor increases thereafter into late 2025.

Net Fixed Asset Turnover Ratio

Exhibits significant improvement from mid-2020 onward, increasing from about 20.1 to nearly 29, reflecting better asset utilization efficiency; remains relatively high with minor oscillations toward the end of the period.

The financial data over the analyzed periods illustrate several noticeable trends in revenue, total assets, and total asset turnover ratios.

Revenue Trends

Revenue generally shows a positive trajectory from October 2019 through mid-2023, increasing from approximately 13.16 billion US dollars to a peak of 15.20 billion US dollars in July 2023. This growth is followed by some fluctuations starting late 2023 and throughout 2024, where revenue dips to around 12.70 billion US dollars before recovering towards the end of the period to nearly 14.67 billion US dollars. Overall, the revenue pattern reflects steady growth with intermittent declines during the latter part of the dataset.

Total Assets Trends

Total assets remain relatively stable over the period with values fluctuating generally between 90 billion and 125 billion US dollars. Starting at about 92.49 billion US dollars in October 2019, assets show moderate increments and some volatility, rising to approximately 124.41 billion US dollars in January 2025. There is a noticeable increase beginning around mid-2023, suggesting asset base expansion, followed by slight reductions and stabilization towards the last periods reported.

Total Asset Turnover Ratio Trends

Data on total asset turnover ratios begin from April 2020, showing values mainly in the 0.50 to 0.56 range through the mid-2023 periods, indicating relatively stable efficiency in utilizing assets to generate revenue. However, from late 2023 onwards, there is a marked decline to lows around 0.43-0.45, reflecting decreased efficiency in asset utilization. Towards the last two reported quarters, the ratio begins to recover slightly but remains below earlier levels, suggesting a possible need for management focus on improving asset productivity.

In summary, revenue growth has been positive overall but with some recent volatility. Total assets have grown modestly with some fluctuations, and asset turnover ratios demonstrate a decline in asset efficiency in the latter periods, which could impact profitability if not addressed. These observations indicate that while the company has expanded its asset base, it has faced challenges in maintaining earlier levels of asset utilization effectiveness.

Revenue Trends

The revenue displayed variability over the observed periods. Initially, there was a decline from 13,159 million USD in October 2019 to 11,983 million USD by April 2020, reflecting a contraction. Subsequently, a gradual recovery and growth phase occurred, with revenue increasing to 15,203 million USD by July 2023. A noticeable dip followed in the periods ending January and April 2024, when revenue fell below 13,000 million USD. In the most recent quarters, revenue rebounded once again, reaching 14,673 million USD by October 2024. Overall, the revenue exhibits a cyclical pattern with periods of decline and recovery, ending on a positive upward trend.

Total Equity Trends

The total equity consistently increased over the entire time frame, rising from 34,423 million USD in October 2019 to 46,843 million USD by October 2024. Minor fluctuations are present, such as a dip around the period ending January 2022, but the overall trajectory is upward. This steady increase in total equity suggests sustained accumulation of net assets and retained earnings over time.

Equity Turnover Analysis

Equity turnover data, reported from April 2020 onward, showed a downward trend from a high of 1.3 in April 2020 to around 1.17 by April 2025, with some minor upturns thereafter, ending near 1.21 in July 2025. This ratio's decline indicates that revenue generated per unit of equity decreased over the period, suggesting a moderation in the efficiency of equity utilization despite the absolute growth in revenue.

Combined Insights

The juxtaposition of rising total equity with fluctuating revenue and declining equity turnover points to an expanding equity base that is not always translating into proportionally higher revenue. The company's equity growth outpaces its revenue growth efficiency, as illustrated by the falling equity turnover ratio. Periods of revenue decline, especially notable around early 2020 and early 2024, coupled with consistent equity accumulation, may imply strategic reinvestment or cautious growth policies. The more recent recovery in revenue alongside maintained equity levels suggests potential improvement in operational effectiveness moving forward.