Cisco Systems Inc (CSCO)
Operating return on assets (Operating ROA)
| Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,181,000 | 12,181,000 | 15,031,000 | 15,031,000 | 13,969,000 |
| Total assets | US$ in thousands | 124,413,000 | 124,413,000 | 101,852,000 | 101,852,000 | 94,002,000 |
| Operating ROA | 9.79% | 9.79% | 14.76% | 14.76% | 14.86% |
July 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $12,181,000K ÷ $124,413,000K
= 9.79%
The operating return on assets (ROA) ratio for Cisco Systems Inc has shown a relatively stable trend over the analyzed period, varying between 14.86% in July 2022 and 9.79% in July 2024. This ratio indicates that the company generated 14.86 cents of operating income for every dollar of assets in July 2022, but this figure declined to 9.79 cents in July 2024.
It is essential for the management to further examine the factors contributing to the decrease in operating ROA since higher ratios generally signify better operational efficiency. Possible causes could include changes in asset utilization, operating expenses, or revenue generation. Continuous monitoring and improvement of operating ROA are crucial for Cisco Systems Inc to ensure optimal utilization of its assets and sustainable profitability.
Peer comparison
Jul 31, 2024