Cisco Systems Inc (CSCO)
Profitability ratios
Return on sales
| Jul 31, 2025 | Apr 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 65.14% | 65.24% | 64.23% | 64.22% | 64.40% | 64.37% | 65.26% | 65.26% | 64.98% | 64.92% | 64.84% | 64.40% | 63.93% | 63.42% | 62.88% | 62.34% | 61.78% | 61.46% | 61.25% | 61.75% |
| Operating profit margin | 21.47% | 20.30% | 19.21% | 17.98% | 18.16% | 19.37% | 20.92% | 24.11% | 26.95% | 27.84% | 28.64% | 28.14% | 27.62% | 26.72% | 25.77% | 25.47% | 25.16% | 25.73% | 26.22% | 26.75% |
| Pretax margin | 20.22% | 18.87% | 17.85% | 17.07% | 17.49% | 19.24% | 21.35% | 24.76% | 27.80% | 28.92% | 29.93% | 29.17% | 28.39% | 27.35% | 26.25% | 25.82% | 25.38% | 25.61% | 25.84% | 26.85% |
| Net profit margin | 18.45% | 17.60% | 16.98% | 16.39% | 15.29% | 16.44% | 17.89% | 20.55% | 22.93% | 24.28% | 25.51% | 24.84% | 24.15% | 22.77% | 21.31% | 20.69% | 20.05% | 20.31% | 20.57% | 21.59% |
The analysis of Cisco Systems Inc.'s profitability ratios reveals several notable trends over the observed periods.
Gross Profit Margin:
The gross profit margin has demonstrated a consistent upward trend, increasing from approximately 61.75% in October 2022 to a high of around 65.26% in April 2024, and slightly tapering to approximately 64.22% in October 2024 before stabilizing around 64.23% to 65.24% in early 2025. This progressive increase indicates an improvement in the company's ability to manage the cost of goods sold effectively, suggesting favorable pricing strategies, cost controls, or a shift toward higher-margin products or services.
Operating Profit Margin:
Operating margins have shown variability but an overall upward trajectory until mid-2023, reaching around 28.14% in October 2023. Subsequently, a decline is observed, with margins falling to approximately 17.98% in October 2024. The recent increase to over 20% in early 2025 indicates some recovery. This pattern reflects fluctuating operational efficiency, possibly influenced by changes in operating expenses, strategic restructuring, or macroeconomic factors affecting costs and revenues.
Pretax Margin:
The pretax margin closely mirrors the operating margin's fluctuations, with a high of around 29.17% in October 2023. After that peak, a decline occurs, reaching approximately 17.07% in October 2024. The margin then shows signs of stabilization and slight recovery to about 20.22% by mid-2025. This trend suggests that the company’s ability to retain earnings before taxes has been impacted by operational costs, non-operating expenses, or tax considerations.
Net Profit Margin:
The net profit margin has experienced a similar pattern, peaking at 25.51% in October 2023 and declining thereafter to a low of around 15.29% in July 2024. Recent data indicates a modest recovery, with margins approaching 18% in early 2025. This indicates that after accounting for all expenses, including taxes, the company’s profitability has been challenged but is showing signs of improvement.
Summary:
Overall, Cisco's gross profit margin has steadily increased, signaling effective management of direct costs and pricing. However, the operating, pretax, and net profit margins experienced periods of decline, particularly after late 2023, likely due to rising operating expenses, market conditions, or strategic investments. The most recent data suggests a potential stabilization or modest recovery in profitability ratios, pointing to an improving but volatile profitability profile.
Return on investment
| Jul 31, 2025 | Apr 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.92% | 9.43% | 8.82% | 7.93% | 7.73% | 8.11% | 8.60% | 10.29% | 14.57% | 15.72% | 17.27% | 16.93% | 16.10% | 15.16% | 14.84% | 14.43% | 14.26% | 14.44% | 15.03% | 15.11% |
| Return on assets (ROA) | 8.53% | 8.17% | 7.80% | 7.23% | 6.51% | 6.89% | 7.35% | 8.77% | 12.40% | 13.71% | 15.38% | 14.95% | 14.08% | 12.92% | 12.27% | 11.72% | 11.36% | 11.40% | 11.79% | 12.19% |
| Return on total capital | 27.69% | 26.43% | 25.06% | 23.65% | 23.35% | 17.03% | 25.66% | 20.81% | 33.88% | 32.07% | 40.41% | 34.28% | 39.00% | 31.83% | 35.88% | 30.00% | 34.22% | 28.88% | 35.18% | 30.24% |
| Return on equity (ROE) | 22.19% | 21.32% | 20.78% | 19.70% | 17.81% | 18.85% | 19.75% | 23.58% | 27.12% | 29.98% | 33.60% | 32.66% | 32.33% | 29.66% | 28.30% | 27.02% | 26.25% | 26.35% | 27.24% | 28.17% |
The profitability ratios of Cisco Systems Inc. indicate a multi-faceted view of its financial performance over the period reflected in the provided data.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibits a general upward trend from October 2022 through October 2023, starting at approximately 15.11% and reaching a peak of 17.27%. This suggests improved operational efficiency in generating profit from its assets during this period. However, subsequent quarters reveal a notable decline, dropping sharply to around 8.60% by April 2024 and continuing downward to approximately 7.73% by July 2024. Thereafter, the trend stabilizes at a lower level, around 7–9%, with slight upward movement into 2025, reaching nearly 9.92% by July 2025. This pattern indicates a significant dip in operational effectiveness post-October 2023, followed by partial recovery.
Return on Assets (ROA):
The ROA mirrors the trajectory observed in Operating ROA, rising from approximately 12.19% in October 2022 to a high of 15.38% in October 2023. Subsequently, the ratio declines markedly, reaching around 6.51% by July 2024, before gradually improving again in early 2025 to about 8.53% in July 2025. The sharp decline post-October 2023 suggests increased challenges in overall asset efficiency in generating net income, with a modest recovery evident in later periods.
Return on Total Capital:
This ratio demonstrates more variability but maintains an overall trend of decline from late 2022 through mid-2024. It starts at elevated levels above 30%, with a peak around 40% in October 2023, followed by a significant drop to approximately 17% in July 2024, before gradually returning to near mid-20% levels in 2025. The fluctuations reflect changes in capital efficiency and overall profitability, with a substantial dip indicating decreased effectiveness in utilizing total capital during the second half of the observed period.
Return on Equity (ROE):
ROE data reflect both stability and fluctuations. It remains relatively high, fluctuating around 27–33% from late 2022 through October 2023, with a peak of 33.6% in October 2023. After this peak, a downward trend ensues, dropping to about 17.81% in July 2024, followed by gradual recovery into 2025, reaching over 22%. The pattern suggests periods of strong profitability driven by equity, offset by phases of reduced efficiency or increased equity capital, leading to variations in the ratio.
Summary:
Overall, Cisco's profitability ratios indicate a period of solid operational and net income performance through late 2022 and into late 2023. However, beginning in early 2024, there is a significant decline across operating and net profit measures, likely reflecting increased challenges or shifts in business environments, cost structures, or revenue streams. Recent data shows signs of partial recovery, especially in 2025, suggesting efforts to regain profitability efficiencies. The patterns highlight a company experiencing volatility in profitability metrics, with a notable dip followed by subsequent stabilization and modest improvements in profitability ratios over the course of the period analyzed.