Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Cisco Systems Inc., profitability ratios

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Return on Sales
Gross profit margin 62.73% 62.55% 64.02% 64.26% 62.94% 62.04%
Operating profit margin 26.37% 27.09% 25.76% 27.63% 27.39% 24.95%
Net profit margin 22.13% 22.91% 21.26% 22.75% 22.39% 0.22%
Return on Investment
Return on equity (ROE) 28.44% 29.70% 25.66% 29.57% 34.62% 0.25%
Return on assets (ROA) 12.38% 12.57% 10.86% 11.82% 11.88% 0.10%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Cisco Systems Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Cisco Systems Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Cisco Systems Inc. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Cisco Systems Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Cisco Systems Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Gross Profit Margin

Cisco Systems Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Selected Financial Data (US$ in millions)
Gross margin 35,753 32,248 31,894 31,683 32,666 30,606
Revenue 56,998 51,557 49,818 49,301 51,904 49,330
Profitability Ratio
Gross profit margin1 62.73% 62.55% 64.02% 64.26% 62.94% 62.04%
Benchmarks
Gross Profit Margin, Competitors2
Apple Inc. 44.13% 43.31% 41.78% 38.23% 37.82% 38.34%
Arista Networks Inc. 61.95% 61.07% 63.80% 63.94% 64.06%
Super Micro Computer Inc. 18.01% 15.40% 15.03% 15.76% 14.16% 12.80%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

1 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 35,753 ÷ 56,998 = 62.73%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Cisco Systems Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Operating Profit Margin

Cisco Systems Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Selected Financial Data (US$ in millions)
Operating income 15,031 13,969 12,833 13,620 14,219 12,309
Revenue 56,998 51,557 49,818 49,301 51,904 49,330
Profitability Ratio
Operating profit margin1 26.37% 27.09% 25.76% 27.63% 27.39% 24.95%
Benchmarks
Operating Profit Margin, Competitors2
Apple Inc. 29.82% 30.29% 29.78% 24.15% 24.57% 26.69%
Arista Networks Inc. 38.52% 34.86% 31.37% 30.19% 33.42%
Super Micro Computer Inc. 10.68% 6.45% 3.48% 2.57% 2.78% 2.82%
Operating Profit Margin, Sector
Technology Hardware & Equipment 29.20% 29.70% 29.10% 24.49% 24.86%
Operating Profit Margin, Industry
Information Technology 26.31% 28.45% 28.75% 24.95% 25.41%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 15,031 ÷ 56,998 = 26.37%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Cisco Systems Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Net Profit Margin

Cisco Systems Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Selected Financial Data (US$ in millions)
Net income 12,613 11,812 10,591 11,214 11,621 110
Revenue 56,998 51,557 49,818 49,301 51,904 49,330
Profitability Ratio
Net profit margin1 22.13% 22.91% 21.26% 22.75% 22.39% 0.22%
Benchmarks
Net Profit Margin, Competitors2
Apple Inc. 25.31% 25.31% 25.88% 20.91% 21.24% 22.41%
Arista Networks Inc. 35.62% 30.87% 28.52% 27.38% 35.67%
Super Micro Computer Inc. 8.98% 5.49% 3.14% 2.52% 2.05% 1.37%
Net Profit Margin, Sector
Technology Hardware & Equipment 24.78% 24.87% 25.16% 21.05% 21.32%
Net Profit Margin, Industry
Information Technology 22.13% 24.06% 25.54% 21.37% 22.17%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 12,613 ÷ 56,998 = 22.13%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Cisco Systems Inc. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Return on Equity (ROE)

Cisco Systems Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Selected Financial Data (US$ in millions)
Net income 12,613 11,812 10,591 11,214 11,621 110
Equity 44,353 39,773 41,275 37,920 33,571 43,204
Profitability Ratio
ROE1 28.44% 29.70% 25.66% 29.57% 34.62% 0.25%
Benchmarks
ROE, Competitors2
Apple Inc. 156.08% 196.96% 150.07% 87.87% 61.06% 55.56%
Arista Networks Inc. 28.91% 27.68% 21.13% 19.11% 29.71%
Super Micro Computer Inc. 32.45% 20.00% 10.20% 7.91% 7.64% 5.47%
ROE, Sector
Technology Hardware & Equipment 97.10% 117.05% 97.06% 64.42% 53.02%
ROE, Industry
Information Technology 31.94% 38.70% 42.55% 35.28% 36.69%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

1 2023 Calculation
ROE = 100 × Net income ÷ Equity
= 100 × 12,613 ÷ 44,353 = 28.44%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Cisco Systems Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Return on Assets (ROA)

Cisco Systems Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Jul 29, 2023 Jul 30, 2022 Jul 31, 2021 Jul 25, 2020 Jul 27, 2019 Jul 28, 2018
Selected Financial Data (US$ in millions)
Net income 12,613 11,812 10,591 11,214 11,621 110
Total assets 101,852 94,002 97,497 94,853 97,793 108,784
Profitability Ratio
ROA1 12.38% 12.57% 10.86% 11.82% 11.88% 0.10%
Benchmarks
ROA, Competitors2
Apple Inc. 27.51% 28.29% 26.97% 17.73% 16.32% 16.28%
Arista Networks Inc. 20.98% 19.96% 14.66% 13.39% 20.54%
Super Micro Computer Inc. 17.42% 8.90% 4.99% 4.39% 4.27% 2.61%
ROA, Sector
Technology Hardware & Equipment 24.00% 24.80% 23.27% 16.30% 15.34%
ROA, Industry
Information Technology 13.10% 15.14% 15.64% 12.15% 12.81%

Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 12,613 ÷ 101,852 = 12.38%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Cisco Systems Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.