Cisco Systems Inc (CSCO)
Fixed asset turnover
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 53,861,000 | 56,682,000 | 51,376,000 | 49,690,000 | 48,991,000 |
| Property, plant and equipment | US$ in thousands | 2,090,000 | 2,085,000 | 1,997,000 | 2,338,000 | 2,453,000 |
| Fixed asset turnover | 25.77 | 27.19 | 25.73 | 21.25 | 19.97 |
July 27, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $53,861,000K ÷ $2,090,000K
= 25.77
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better asset utilization.
Based on the data provided for Cisco Systems Inc, the fixed asset turnover ratios for the last five years are as follows:
- July 27, 2024: 25.77
- July 29, 2023: 27.19
- July 30, 2022: 25.73
- July 31, 2021: 21.25
- July 25, 2020: 19.97
The trend of Cisco's fixed asset turnover ratios shows an improvement over the years, indicating that the company has been able to generate more revenue relative to its investment in fixed assets. This trend suggests that Cisco has been effectively utilizing its fixed assets to drive sales and maintain operational efficiency. A higher fixed asset turnover ratio reflects better efficiency in utilizing fixed assets to generate sales, which is a positive indicator for investors as it signifies improved operational performance and asset management.
Peer comparison
Jul 27, 2024