Cisco Systems Inc (CSCO)
Operating return on assets (Operating ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,925,000 | 12,181,000 | 12,181,000 | 15,031,000 | 15,031,000 |
| Total assets | US$ in thousands | 122,564,000 | 124,413,000 | 124,413,000 | 101,852,000 | 101,852,000 |
| Operating ROA | 10.55% | 9.79% | 9.79% | 14.76% | 14.76% |
July 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $12,925,000K ÷ $122,564,000K
= 10.55%
The operating return on assets (operating ROA) for Cisco Systems Inc. exhibits notable fluctuations over the periods analyzed. As of July 29 and July 31, 2023, the operating ROA stood at 14.76%, indicating a healthy level of operating efficiency relative to the company's total assets during this timeframe. However, by July 27 and July 31, 2024, the operating ROA declined sharply to 9.79%, reflecting a significant decrease in operational profitability relative to assets employed. This decline suggests that the company's ability to generate operating income from its assets diminished markedly in the 2024 period. Moving into the subsequent period, the operating ROA shows a modest recovery to 10.55% as of July 31, 2025. Although this indicates some improvement, the ratio remains well below the prior year’s levels, signaling lingering challenges in maintaining previous levels of operating efficiency. Overall, the trend from 2023 through 2025 suggests a period of operational contraction followed by a partial rebound, which warrants further investigation into underlying operational factors affecting asset utilization and profitability.
Peer comparison
Jul 31, 2025