Cisco Systems Inc (CSCO)

Operating return on assets (Operating ROA)

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Operating income	US$ in thousands	12,181,000	15,031,000	13,969,000	12,833,000	13,620,000
Total assets	US$ in thousands	124,413,000	101,852,000	94,002,000	97,497,000	94,853,000
Operating ROA		9.79%	14.76%	14.86%	13.16%	14.36%

July 27, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $12,181,000K ÷ $124,413,000K
= 9.79%

Cisco Systems Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years. In the most recent fiscal year ending July 27, 2024, the operating ROA stood at 9.79%, indicating that the company generated approximately $0.098 in operating income for every $1 of assets employed in its operations.

Comparing this with the previous years, we observe a notable drop from 14.76% in July 29, 2023, and a more significant decrease from 14.86% in July 30, 2022. The operating ROA was also lower than the figure in July 31, 2021 (13.16%). However, it is slightly higher than in July 25, 2020 (14.36%).

This downward trend suggests that Cisco Systems Inc may be facing challenges in efficiently utilizing its assets to generate operating income. It could indicate potential inefficiencies in the company's operations or a decrease in profitability relative to its asset base. Further analysis of the company's operational performance and asset management strategies may be necessary to identify the underlying reasons for this decline in operating ROA and to implement corrective measures to improve performance.