Cisco Systems Inc (CSCO)
Profitability ratios
Return on sales
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.66% | 63.08% | 62.77% | 64.19% | 64.67% |
| Operating profit margin | 22.62% | 26.52% | 27.19% | 25.83% | 27.80% |
| Pretax margin | 22.71% | 27.02% | 28.18% | 26.69% | 28.52% |
| Net profit margin | 19.16% | 22.25% | 22.99% | 21.31% | 22.89% |
Cisco Systems Inc has shown relatively consistent gross profit margins over the past five years, ranging from 62.77% to 64.67%. This indicates the company has effectively managed its cost of goods sold.
In terms of operating profit margin, Cisco exhibited a downward trend from 27.19% in 2022 to 22.62% in 2024. This suggests that the company's operating expenses may have increased in relation to its revenue during this period.
The pretax margin also decreased from 28.18% in 2022 to 22.71% in 2024, indicating that Cisco's pre-tax profitability has been slightly impacted by increased expenses or other factors.
Net profit margin, a key profitability indicator, followed a similar downward trend as the operating and pretax margins, declining from 22.99% in 2022 to 19.16% in 2024. This suggests that Cisco's bottom-line profitability has been affected by various factors, such as increased expenses or changes in revenue.
Overall, while Cisco's gross profit margins have remained relatively stable, its operating, pretax, and net profit margins have shown a downward trend over the past five years, indicating potential challenges in maintaining profitability levels.
Return on investment
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.79% | 14.76% | 14.86% | 13.16% | 14.36% |
| Return on assets (ROA) | 8.29% | 12.38% | 12.57% | 10.86% | 11.82% |
| Return on total capital | 18.72% | 30.87% | 30.79% | 27.23% | 29.41% |
| Return on equity (ROE) | 22.70% | 28.44% | 29.70% | 25.66% | 29.57% |
The profitability ratios of Cisco Systems Inc over the past five years show a stable performance with some fluctuations.
- Operating return on assets (Operating ROA) decreased slightly from 14.86% in 2022 to 9.79% in 2024, indicating a drop in the company's ability to generate operating profits from its total assets.
- Return on assets (ROA) followed a similar trend, decreasing from 12.57% in 2022 to 8.29% in 2024. This indicates a decline in the company's overall profitability in relation to its total assets.
- Return on total capital saw a decrease from 30.79% in 2022 to 18.72% in 2024, suggesting a lower return for investors and creditors on total invested capital.
- Return on equity (ROE) also decreased from 29.70% in 2022 to 22.70% in 2024, which reflects a decline in the company's ability to generate profits from shareholders' equity.
Overall, while the profitability ratios of Cisco Systems Inc show some decrease over the analyzed period, the company still remains profitable, though it may need to focus on improving its operational efficiency and capital utilization to enhance profitability in the future.