Cisco Systems Inc (CSCO)

Return on assets (ROA)

		Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023	Jul 31, 2022
Net income	US$ in thousands	10,320,000	10,320,000	12,613,000	12,613,000	11,812,000
Total assets	US$ in thousands	124,413,000	124,413,000	101,852,000	101,852,000	94,002,000
ROA		8.29%	8.29%	12.38%	12.38%	12.57%

July 31, 2024 calculation

ROA = Net income ÷ Total assets
= $10,320,000K ÷ $124,413,000K
= 8.29%

The return on assets (ROA) for Cisco Systems Inc has shown a consistent trend in recent years. As of July 31, 2022, the ROA stood at 12.57%, indicating that the company generated $12.57 in net income for every $100 of assets. Over the following year, the ROA remained relatively stable, registering at 12.38% by July 29, 2023, and maintaining this level until July 31, 2023.

However, there was a noticeable decline in ROA in the subsequent period, with the ratio dropping to 8.29% by July 27, 2024, and remaining at this level through July 31, 2024. This decrease suggests that Cisco Systems Inc may have experienced challenges in effectively utilizing its assets to generate profits during this time.

Overall, while Cisco Systems Inc has historically demonstrated solid performance in terms of ROA, investors and analysts may want to closely monitor any further fluctuations in this ratio to assess the company's ability to generate earnings from its asset base efficiently.