Cisco Systems Inc (CSCO)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 27, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 10,707,000 | 10,360,000 | 10,193,000 | 10,683,000 | 11,161,000 | 12,671,000 | 14,756,000 | 15,901,000 | 17,058,000 | 16,728,000 | 16,398,000 | 15,437,000 | 14,476,000 | 14,070,000 | 13,664,000 | 13,844,000 | 13,986,000 | 14,056,000 | 14,003,000 | 14,018,000 |
| Total assets | US$ in thousands | 121,375,000 | 123,333,000 | 124,413,000 | 124,413,000 | 122,998,000 | 122,998,000 | 101,174,000 | 101,174,000 | 98,782,000 | 98,782,000 | 101,852,000 | 101,852,000 | 97,529,000 | 97,529,000 | 95,840,000 | 95,840,000 | 93,054,000 | 93,054,000 | 94,002,000 | 94,002,000 |
| Operating ROA | 8.82% | 8.40% | 8.19% | 8.59% | 9.07% | 10.30% | 14.58% | 15.72% | 17.27% | 16.93% | 16.10% | 15.16% | 14.84% | 14.43% | 14.26% | 14.44% | 15.03% | 15.11% | 14.90% | 14.91% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $10,707,000K ÷ $121,375,000K
= 8.82%
Operating return on assets (ROA) is a key financial ratio that measures how efficiently a company generates operating profits relative to its total assets. For Cisco Systems Inc, the operating ROA has fluctuated over the period covered in the data provided.
From July 2022 to October 2023, Cisco's operating ROA showed a steady improvement, increasing from around 14.90% to 17.27%. This indicates that the company was effectively utilizing its assets to generate operating income during this period.
However, starting from January 2024, there was a notable decline in Cisco's operating ROA. The ratio dropped to as low as 8.19% in July 2024 before slightly increasing to 8.82% in January 2025. This downward trend suggests that Cisco may have faced challenges in maintaining its profitability relative to its asset base.
Overall, Cisco Systems Inc's operating return on assets has shown both positive growth and periods of decline, reflecting fluctuations in the company's operating efficiency and profitability over the specified time frame. Further analysis of the underlying factors driving these changes would be necessary to gain a comprehensive understanding of Cisco's financial performance.
Peer comparison
Jan 31, 2025