Cisco Systems Inc (CSCO)

Total asset turnover

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Revenue	US$ in thousands	56,654,000	53,803,000	53,861,000	56,998,000	56,682,000
Total assets	US$ in thousands	122,564,000	124,413,000	124,413,000	101,852,000	101,852,000
Total asset turnover		0.46	0.43	0.43	0.56	0.56

July 31, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $56,654,000K ÷ $122,564,000K
= 0.46

The total asset turnover ratio for Cisco Systems Inc. exhibits a notable decline from the period ending July 31, 2023, to the period ending July 31, 2024. Specifically, the ratio decreased from 0.56 in both July 29 and July 31, 2023, to 0.43 in July 27 and July 31, 2024. This represents a reduction of approximately 23.2%, indicating that the company generated less sales revenue per dollar of total assets during this period.

Subsequently, the ratio showed a slight improvement in the subsequent period ending July 31, 2025, increasing to 0.46. Although this reflects a modest recovery, it remains below the levels observed in 2023, suggesting a continued, albeit less pronounced, decline in asset efficiency over the analyzed timeframe.

Overall, the trend suggests a decrease in Cisco’s operational efficiency in utilizing its total assets to generate sales over the two-year span, with a partial recovery in the most recent period. This pattern warrants further investigation into underlying operational or strategic changes that may have impacted asset utilization.