Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Cisco Systems Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
The data indicates consistent profitability metrics over multiple quarters, with some fluctuations in profitability margins and returns. The analysis covers gross profit margin, operating profit margin, net profit margin, return on equity, and return on assets, reflecting varied aspects of financial performance.
- Gross Profit Margin
- The gross profit margin remained relatively stable, fluctuating slightly within a narrow range. Beginning around 64.26%, it shows a gentle decline, reaching a low near 61.92%, before recovering back towards approximately 65.24%. The stability suggests effective management of production and direct costs over time, allowing the company to maintain healthy profitability on sales despite minor variations.
- Operating Profit Margin
- This margin experienced a mild downward trend overall, starting at approximately 27.63% and gradually decreasing to about 18.98% at one point. Thereafter, a modest recovery is visible, ending near 20.76%. The decline suggests increasing operating expenses or changes in cost structure impacting operational efficiency, while the later improvement may reflect cost controls or operational adjustments implemented.
- Net Profit Margin
- The net profit margin followed a pattern similar to the operating margin but with less pronounced volatility. It began at around 22.75%, exhibited some decline to values near 16.96%, then showed signs of recovery, closing near 17.97%. This trend implies variations in overall profitability after all expenses and taxes, potentially influenced by shifts in non-operating income or tax rates alongside operating cost changes.
- Return on Equity (ROE)
- ROE trends are marked by an initial decrease from about 29.57% to a low near 20.18%, followed by a modest rebound to approximately 21.73%. This pattern may reflect changes in profitability relative to shareholder equity, indicating fluctuations in how effectively equity investment translates into earnings, potentially affected by both income performance and equity base changes over time.
- Return on Assets (ROA)
- The ROA showed more considerable fluctuations, dropping from approximately 11.82% to a low near 7.57%, then gradually increasing again to around 8.32%. This measure indicates asset utilization efficiency and overall profitability of the company’s asset base. The decrease suggests periods of lower asset efficiency or profitability pressure, whereas the subsequent modest recovery points to improvement in leveraging assets to generate earnings.
Overall, the company demonstrates solid gross profit margins with some variability in operational efficiencies and profitability measures. The downward trends in margins and returns during certain periods highlight cost pressures or market challenges, while recoveries indicate responsive management initiatives. Continuous focus on operational control and asset utilization appears critical for sustaining profitability and shareholder value.
Return on Sales
Return on Investment
Gross Profit Margin
Cisco Systems Inc., gross profit margin calculation (quarterly data)
| Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Gross margin | 9,280) | 9,278) | 9,111) | 9,121) | 8,781) | 8,273) | 8,217) | 9,557) | 9,748) | 9,232) | 8,427) | 8,346) | 8,025) | 8,121) | 8,049) | 8,053) | 8,344) | 8,185) | 7,784) | 7,581) | 7,684) | 7,771) | 7,764) | 8,464) | |||||||
| Revenue | 14,673) | 14,149) | 13,991) | 13,841) | 13,642) | 12,702) | 12,791) | 14,668) | 15,203) | 14,571) | 13,592) | 13,632) | 13,102) | 12,835) | 12,720) | 12,900) | 13,126) | 12,803) | 11,960) | 11,929) | 12,154) | 11,983) | 12,005) | 13,159) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||
| Gross profit margin1 | 64.94% | 65.24% | 65.13% | 64.92% | 64.73% | 64.65% | 64.22% | 63.69% | 62.73% | 61.99% | 61.92% | 62.23% | 62.55% | 63.14% | 63.30% | 63.73% | 64.02% | 63.94% | 64.17% | 64.07% | 64.26% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | — | 46.68% | 46.63% | 46.52% | 46.21% | 45.96% | 45.59% | 45.03% | 44.13% | 43.45% | 43.18% | 43.06% | 43.31% | 43.31% | 43.32% | 43.02% | 41.78% | 41.01% | 39.88% | 38.78% | 38.23% | 38.19% | 38.11% | 37.95% | |||||||
| Arista Networks Inc. | — | — | 64.24% | 64.09% | 64.13% | 64.41% | 64.01% | 62.94% | 61.95% | 60.76% | 60.18% | 60.27% | 61.07% | 61.82% | 62.77% | 63.64% | 63.80% | 63.95% | 63.87% | 63.72% | 63.94% | — | — | — | |||||||
| Dell Technologies Inc. | 22.24% | 22.18% | 22.51% | 23.07% | 23.60% | 23.38% | 23.36% | 22.57% | 22.18% | 21.42% | 20.92% | 21.40% | 21.63% | 24.59% | 27.13% | 29.32% | 31.22% | 31.42% | 31.49% | 31.46% | 31.40% | — | — | — | |||||||
| Super Micro Computer Inc. | 11.06% | 11.27% | 12.44% | 13.20% | 13.75% | 15.97% | 16.39% | 17.44% | 18.01% | 18.23% | 17.80% | 16.78% | 15.40% | 14.22% | 13.68% | 14.18% | 15.03% | 15.14% | 16.03% | 15.91% | 15.76% | — | — | — | |||||||
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025
+ Gross marginQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (9,280 + 9,278 + 9,111 + 9,121)
÷ (14,673 + 14,149 + 13,991 + 13,841)
= 64.94%
2 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends across the reported periods. Revenue demonstrates fluctuations with an overall upward trajectory, particularly noticeable from early 2021 through mid-2023. Starting around 11,960 million USD in January 2021, revenue rose to a peak of approximately 15,203 million USD by July 2023, followed by a decline in late 2023 and early 2024, before recovering again towards mid-2025. This pattern indicates periods of growth interrupted by short-term contractions.
Gross margin figures closely correspond to revenue trends, presenting a generally rising pattern from 2019 through mid-2023. Beginning at roughly 7,764 million USD in early 2020, gross margin climbed to a high of about 9,748 million USD in July 2023, with some variability thereafter. Despite revenue decreases noted in late 2023 and early 2024, the gross margin remained relatively stable, suggesting effective cost management or product mix adjustments during those periods.
The gross profit margin percentage data shows a relatively narrow range of fluctuation, generally oscillating around the low to mid-60 percent range. The values start around 64.26% in mid-2020, dip slightly during subsequent quarters, then gradually increase to surpass 65% by mid-2025. This slow but steady increase signals gradual improvements in profitability efficiency, possibly through enhanced operational leverage or favorable pricing dynamics.
- Revenue Trend
- Exhibited overall growth from early 2021, peaking mid-2023, with short declines thereafter followed by recovery.
- Gross Margin Trend
- Generally increased over the period, reaching highs aligned with revenue peaks, maintaining stability even through short revenue dips.
- Gross Profit Margin Percentage
- Remained relatively stable with mild fluctuations around 60-65%, showing a gradual improving trend toward the end of the analyzed timeframe.
In summary, the company demonstrated growth in both absolute revenue and gross margin values across the majority of reported quarters, along with slight but consistent improvements in gross profit margin percentage. Despite occasional short-term revenue declines, the firm managed to maintain its profitability levels, reflecting operational resilience and potential strategic financial management.
Operating Profit Margin
Cisco Systems Inc., operating profit margin calculation (quarterly data)
| Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Operating income | 3,087) | 3,202) | 3,113) | 2,358) | 2,618) | 2,191) | 3,096) | 4,276) | 4,253) | 3,946) | 3,292) | 3,540) | 3,434) | 3,610) | 3,487) | 3,438) | 3,575) | 3,465) | 3,223) | 2,570) | 3,247) | 3,414) | 3,380) | 3,579) | |||||||
| Revenue | 14,673) | 14,149) | 13,991) | 13,841) | 13,642) | 12,702) | 12,791) | 14,668) | 15,203) | 14,571) | 13,592) | 13,632) | 13,102) | 12,835) | 12,720) | 12,900) | 13,126) | 12,803) | 11,960) | 11,929) | 12,154) | 11,983) | 12,005) | 13,159) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||
| Operating profit margin1 | 20.76% | 20.30% | 18.98% | 19.37% | 22.64% | 24.95% | 27.21% | 27.17% | 26.37% | 25.89% | 26.10% | 26.91% | 27.09% | 27.36% | 27.09% | 26.98% | 25.76% | 25.60% | 25.93% | 26.23% | 27.63% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | — | 31.87% | 31.81% | 31.76% | 31.51% | 31.27% | 30.98% | 30.76% | 29.82% | 29.23% | 29.16% | 29.41% | 30.29% | 30.53% | 30.93% | 30.90% | 29.78% | 28.79% | 27.32% | 25.24% | 24.15% | 24.52% | 24.48% | 24.71% | |||||||
| Arista Networks Inc. | — | — | 43.14% | 42.27% | 42.05% | 42.11% | 41.23% | 40.01% | 38.52% | 37.29% | 36.12% | 35.71% | 34.86% | 33.69% | 32.55% | 31.56% | 31.37% | 30.79% | 30.76% | 30.72% | 30.19% | — | — | — | |||||||
| Dell Technologies Inc. | 6.53% | 5.87% | 5.81% | 5.69% | 5.89% | 5.39% | 5.54% | 5.45% | 5.64% | 5.88% | 5.12% | 4.99% | 4.60% | 5.26% | 5.51% | 5.72% | 5.46% | 4.00% | 3.71% | 3.01% | 2.85% | — | — | — | |||||||
| Super Micro Computer Inc. | 5.70% | 6.09% | 7.42% | 8.23% | 8.08% | 9.72% | 9.40% | 9.65% | 10.68% | 10.64% | 10.39% | 8.75% | 6.45% | 4.52% | 3.27% | 3.20% | 3.48% | 2.79% | 2.85% | 2.52% | 2.57% | — | — | — | |||||||
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (3,087 + 3,202 + 3,113 + 2,358)
÷ (14,673 + 14,149 + 13,991 + 13,841)
= 20.76%
2 Click competitor name to see calculations.
The financial data exhibits several observable trends relating to operating income, revenue, and operating profit margin over the reported quarterly periods.
- Operating Income
- Operating income experienced fluctuations throughout the periods analyzed. Initially, it showed moderate variability, generally remaining in the range of approximately 2,500 million to 3,600 million US dollars. Notably, there was a significant increase during the quarters around early to mid-2023, reaching peaks above 4,200 million US dollars. However, a decline followed in late 2023 and early 2024 periods, dropping below 2,200 million US dollars at one point, before recovering moderately in quarters thereafter towards the end of the data set.
- Revenue
- Revenue displayed a steady growth trajectory across most quarters. Early in the timeline, revenue hovered around 11,900 million to 13,200 million US dollars per quarter. From mid-2022 onward, a consistently upward trend is clear, culminating in revenues nearing or exceeding 14,600 million US dollars in the latest quarters. Despite some minor quarterly dips, overall revenue growth remained positive and relatively stable over the medium term.
- Operating Profit Margin
- The operating profit margin showed a general range between approximately 18% to 27% during the observed quarters. Early data was incomplete; however, during the recorded periods, the margin mostly stayed in the mid to upper 20% range until early 2024. Subsequently, there was a noticeable compression in the margin, with values dropping below 20% around mid-2024 and remaining at relatively lower levels (around 19-21%) through the final reported quarters. This suggests some margin pressure in more recent periods despite the overall revenue growth.
In summary, while revenue has grown steadily over time, operating income and operating profit margin experienced more volatility, with income peaking and then declining notably in late 2023 to early 2024. The narrowing of operating profit margins in the most recent periods could reflect increased costs, pricing pressures, or shifts in product mix that merit further detailed investigation. The recovery in operating income towards the end of the data series may indicate some operational improvements or favorable market conditions returning.
Net Profit Margin
Cisco Systems Inc., net profit margin calculation (quarterly data)
| Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Net income | 2,550) | 2,491) | 2,428) | 2,711) | 2,162) | 1,886) | 2,634) | 3,638) | 3,958) | 3,212) | 2,773) | 2,670) | 2,815) | 3,044) | 2,973) | 2,980) | 3,009) | 2,863) | 2,545) | 2,174) | 2,636) | 2,774) | 2,878) | 2,926) | |||||||
| Revenue | 14,673) | 14,149) | 13,991) | 13,841) | 13,642) | 12,702) | 12,791) | 14,668) | 15,203) | 14,571) | 13,592) | 13,632) | 13,102) | 12,835) | 12,720) | 12,900) | 13,126) | 12,803) | 11,960) | 11,929) | 12,154) | 11,983) | 12,005) | 13,159) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||
| Net profit margin1 | 17.97% | 17.60% | 16.96% | 17.73% | 19.18% | 21.88% | 23.49% | 23.40% | 22.13% | 20.89% | 21.26% | 22.00% | 22.91% | 23.28% | 22.94% | 22.44% | 21.26% | 20.92% | 21.09% | 21.76% | 22.75% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | — | 24.30% | 24.30% | 24.30% | 23.97% | 26.44% | 26.31% | 26.16% | 25.31% | 24.68% | 24.49% | 24.56% | 25.31% | 25.71% | 26.41% | 26.58% | 25.88% | 25.00% | 23.45% | 21.73% | 20.91% | 21.33% | 21.35% | 21.49% | |||||||
| Arista Networks Inc. | — | — | 40.89% | 40.72% | 40.73% | 40.29% | 39.01% | 37.64% | 35.62% | 33.97% | 32.48% | 31.24% | 30.87% | 29.63% | 29.55% | 29.54% | 28.52% | 28.30% | 27.72% | 27.48% | 27.38% | — | — | — | |||||||
| Dell Technologies Inc. | 4.81% | 4.44% | 4.41% | 4.04% | 3.63% | 2.92% | 2.03% | 2.01% | 2.39% | 1.74% | 5.07% | 5.49% | 5.50% | 6.83% | 3.92% | 4.21% | 3.45% | 2.64% | 2.29% | 4.85% | 5.01% | — | — | — | |||||||
| Super Micro Computer Inc. | 4.77% | 5.34% | 6.94% | 7.55% | 7.69% | 8.88% | 7.92% | 8.29% | 8.98% | 8.93% | 8.70% | 7.38% | 5.49% | 3.96% | 3.00% | 2.89% | 3.14% | 2.69% | 2.71% | 2.56% | 2.52% | — | — | — | |||||||
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (2,550 + 2,491 + 2,428 + 2,711)
÷ (14,673 + 14,149 + 13,991 + 13,841)
= 17.97%
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends over the observed periods. Revenue demonstrates an overall increasing trajectory, with some fluctuations. Starting at approximately 13,159 million USD in October 2019, revenue dips slightly in early 2020 but recovers gradually. By mid-2023, revenue peaks at around 15,203 million USD before experiencing a decline in late 2023 and early 2024, and then shows signs of recovery towards mid-2025, reaching approximately 14,673 million USD.
Net income shows a less consistent pattern compared to revenue. Initially, net income is strong, with values around 2,926 million USD in late 2019, but it trends downward through 2020, reaching a low of approximately 2,174 million USD in October 2020. Recovery is observed in subsequent quarters, peaking at 3,958 million USD in July 2023. However, this peak is followed by a notable decline through early 2024, with net income falling to around 1,886 million USD, before partially rebounding to approximately 2,550 million USD by July 2025.
The net profit margin percentage, available only from mid-2020 onwards, indicates a general decrease over time. Starting in the range between about 22.75% and 21.76% in mid to late 2020, it experiences minor fluctuations but exhibits a downward trend from early 2023, hitting a low near 16.96% in early 2025. A slight improvement is seen toward the middle of 2025, with the margin settling near 17.97%. This decline in profit margin accompanies the volatility in net income and suggests increasing cost pressures relative to revenue.
When analyzing the relationship between revenue and net income, it is evident that even as revenue grows, net income does not consistently increase at the same rate, pointing toward potential challenges in cost control or changes in expense structure. The sharp fluctuations in net income and profit margin around 2023–2025 indicate a period of financial instability or strategic shifts affecting profitability.
- Revenue Trend
- Overall growth with mid-cycle fluctuations, peaking in mid-2023, followed by a dip and partial recovery by mid-2025.
- Net Income Trend
- Variable pattern with initial decline in 2020, highest peak in mid-2023, then a sharp decline and partial rebound by mid-2025.
- Net Profit Margin
- Decreasing trend from around 23% in 2020 to below 18% in early 2025, indicating declining profitability ratios over time.
- Profitability Insights
- Declining net profit margins despite revenue growth suggest increased costs or reduced operational efficiency during recent periods.
Return on Equity (ROE)
Cisco Systems Inc., ROE calculation (quarterly data)
| Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Net income | 2,550) | 2,491) | 2,428) | 2,711) | 2,162) | 1,886) | 2,634) | 3,638) | 3,958) | 3,212) | 2,773) | 2,670) | 2,815) | 3,044) | 2,973) | 2,980) | 3,009) | 2,863) | 2,545) | 2,174) | 2,636) | 2,774) | 2,878) | 2,926) | |||||||
| Total equity | 46,843) | 45,935) | 45,530) | 45,277) | 45,457) | 45,768) | 46,251) | 45,210) | 44,353) | 42,295) | 41,474) | 40,272) | 39,773) | 40,400) | 39,496) | 42,701) | 41,275) | 40,205) | 39,121) | 38,157) | 37,920) | 35,708) | 35,533) | 34,423) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||
| ROE1 | 21.73% | 21.32% | 20.18% | 20.75% | 22.70% | 26.47% | 29.06% | 30.04% | 28.44% | 27.12% | 27.25% | 28.56% | 29.70% | 29.72% | 29.94% | 26.69% | 25.66% | 25.41% | 25.89% | 27.42% | 29.57% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | — | 150.81% | 145.66% | 144.03% | 164.59% | 152.84% | 135.31% | 136.18% | 156.08% | 157.22% | 151.74% | 167.77% | 196.96% | 171.46% | 151.24% | 139.79% | 150.07% | 135.04% | 110.31% | 96.54% | 87.87% | 80.83% | 72.96% | 64.25% | |||||||
| Arista Networks Inc. | — | — | 29.83% | 29.93% | 28.54% | 28.82% | 29.20% | 29.11% | 28.91% | 29.22% | 29.18% | 28.46% | 27.68% | 26.56% | 25.84% | 22.46% | 21.13% | 20.30% | 19.70% | 19.60% | 19.11% | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | 75.81% | 78.28% | 114.54% | 131.10% | 275.31% | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 16.64% | 18.04% | 23.16% | 24.16% | 21.28% | 20.59% | 23.80% | 28.29% | 32.45% | 33.21% | 31.80% | 27.33% | 20.00% | 14.41% | 10.53% | 9.77% | 10.20% | 8.65% | 8.32% | 7.88% | 7.91% | — | — | — | |||||||
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
1 Q4 2025 Calculation
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total equity
= 100 × (2,550 + 2,491 + 2,428 + 2,711)
÷ 46,843 = 21.73%
2 Click competitor name to see calculations.
The net income demonstrates variability over the observed periods with a general trend of fluctuations rather than consistent growth or decline. Initially, net income decreases from 2926 million US$ in October 2019 to 2174 million US$ in October 2020, indicating a downturn possibly influenced by external or internal challenges. Following this low point, the company experiences a recovery phase with net income rising to 3958 million US$ by July 2023, marking the highest reported value in the data set. However, subsequent quarters show a decline again, with net income falling to values around 2491 to 2550 million US$ in 2025, indicating some volatility in profitability.
Total equity shows a predominantly upward trajectory across the periods, rising from 34423 million US$ in October 2019 to 46843 million US$ in July 2025. This steady increase signals strengthening of the company's financial base and accumulation of shareholders' equity. Notable is a slight dip around the early 2022 period, but the overall trend remains positive, reflecting retained earnings or capital inflows contributing to greater equity.
The Return on Equity (ROE) metric is available starting around the July 2020 period and consistently remains in the mid to high twenties percentage range until early 2024. ROE peaks around 30.04% in October 2023, suggesting efficient utilization of equity to generate profits at that point. However, from 2024 onwards, there is a discernible declining trend in ROE, dropping from approximately 29.06% down to 20.18% by April 2025. This decline could imply either a reduction in net profitability or an increase in equity not fully matched by income growth, affecting the efficiency of generating returns for shareholders.
In summary, the company exhibits a stable and increasing equity base with fluctuating net income and a ROE that peaked in late 2023 but subsequently declined. The variations in net income and the recent decrease in ROE highlight potential challenges in maintaining profitability efficiency despite a growing equity position.
Return on Assets (ROA)
Cisco Systems Inc., ROA calculation (quarterly data)
| Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Net income | 2,550) | 2,491) | 2,428) | 2,711) | 2,162) | 1,886) | 2,634) | 3,638) | 3,958) | 3,212) | 2,773) | 2,670) | 2,815) | 3,044) | 2,973) | 2,980) | 3,009) | 2,863) | 2,545) | 2,174) | 2,636) | 2,774) | 2,878) | 2,926) | |||||||
| Total assets | 122,291) | 119,782) | 121,375) | 123,333) | 124,413) | 122,998) | 101,174) | 98,782) | 101,852) | 97,529) | 95,840) | 93,054) | 94,002) | 92,797) | 94,262) | 95,981) | 97,497) | 93,896) | 95,601) | 95,003) | 94,853) | 91,394) | 90,426) | 92,492) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||
| ROA1 | 8.32% | 8.17% | 7.57% | 7.62% | 8.29% | 9.85% | 13.29% | 13.75% | 12.38% | 11.76% | 11.79% | 12.36% | 12.57% | 12.94% | 12.54% | 11.87% | 10.86% | 10.88% | 10.60% | 11.01% | 11.82% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | — | 29.95% | 29.37% | 27.94% | 25.68% | 30.75% | 29.75% | 28.55% | 27.51% | 28.28% | 28.40% | 27.45% | 28.29% | 29.63% | 29.07% | 26.38% | 26.97% | 26.32% | 22.63% | 18.06% | 17.73% | 18.41% | 17.86% | 16.89% | |||||||
| Arista Networks Inc. | — | — | 19.67% | 20.86% | 20.31% | 20.74% | 21.18% | 21.69% | 20.98% | 20.96% | 20.88% | 20.11% | 19.96% | 18.90% | 17.77% | 15.27% | 14.66% | 14.43% | 13.99% | 13.82% | 13.39% | — | — | — | |||||||
| Dell Technologies Inc. | 5.76% | 5.10% | 4.90% | 4.52% | 3.91% | 3.20% | 2.22% | 2.32% | 2.73% | 2.15% | 6.11% | 6.50% | 6.00% | 5.00% | 3.08% | 3.28% | 2.63% | 2.04% | 1.73% | 3.71% | 3.88% | — | — | — | |||||||
| Super Micro Computer Inc. | 7.48% | 10.72% | 14.85% | 13.09% | 11.73% | 11.84% | 13.55% | 14.96% | 17.42% | 18.39% | 18.81% | 13.45% | 8.90% | 5.98% | 4.67% | 4.56% | 4.99% | 4.56% | 4.67% | 4.65% | 4.39% | — | — | — | |||||||
Based on: 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-23), 10-Q (reporting date: 2020-10-24), 10-K (reporting date: 2020-07-25), 10-Q (reporting date: 2020-04-25), 10-Q (reporting date: 2020-01-25), 10-Q (reporting date: 2019-10-26).
1 Q4 2025 Calculation
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × (2,550 + 2,491 + 2,428 + 2,711)
÷ 122,291 = 8.32%
2 Click competitor name to see calculations.
- Net Income
- Over the examined periods, net income exhibits notable fluctuations. Initially, from late 2019 through the first half of 2020, there is a gradual decline from 2926 million USD to 2636 million USD. This downward trend continues into late 2020, reaching a low point of 2174 million USD in October 2020. From early 2021, the net income shows a recovery trend, peaking at 3958 million USD by July 2023. After this peak, however, there is a marked decline through early 2024, dipping to 1886 million USD by January 2024. The figures then show a modest rebound toward mid-2025, concluding around 2550 million USD. Overall, net income demonstrates volatility with periods of both growth and decline, with a pronounced peak in mid-2023 followed by a significant decrease.
- Total Assets
- Total assets across the quarters present a general upward trajectory with some variability. Beginning near 92,492 million USD in late 2019, the total assets fluctuate modestly through 2020 and 2021, maintaining a range between approximately 90,000 and 98,000 million USD. From mid-2022 onward, a more distinct increase emerges, reaching a peak of about 124,413 million USD in early 2024. Subsequently, this level slightly decreases, settling around 122,291 million USD by mid-2025. This trend indicates a pattern of asset growth over the longer term, despite occasional short-term oscillations.
- Return on Assets (ROA)
- ROA data starts from mid-2020 and reveals a generally stable to slightly increasing performance through early 2023. The ratio remains within the range of roughly 10.6% to 13.75% during much of this period. The highest ROA of 13.75% is observed around July 2023, which aligns temporally with the peak in net income. Post this peak, however, ROA declines significantly, dropping to approximately 7.57% in late 2024. A slight uptick is seen by mid-2025, where the ROA again approaches 8.32%. This pattern reflects initial improvement in asset profitability followed by a downturn, paralleling the fluctuations observed in net income.
- Summary of Trends
- The financial metrics collectively indicate a period of initial decline in profitability and net income through 2020, followed by a recovery phase peaking around mid-2023. Asset base expansion accompanies this recovery but exhibits some delays in growth relative to profitability. The subsequent decline in net income and ROA after the peak suggests challenges in maintaining profitability despite a relatively stable asset position. The modest recovery in the most recent quarters implies some stabilization, though the key profitability ratios remain below earlier highs. The correlations between net income peaks and ROA peaks suggest efficiency in generating returns on assets was a significant factor during the strongest periods.