Cisco Systems Inc (CSCO)
Return on equity (ROE)
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,320,000 | 12,613,000 | 11,812,000 | 10,591,000 | 11,214,000 |
| Total stockholders’ equity | US$ in thousands | 45,457,000 | 44,353,000 | 39,773,000 | 41,275,000 | 37,920,000 |
| ROE | 22.70% | 28.44% | 29.70% | 25.66% | 29.57% |
July 27, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $10,320,000K ÷ $45,457,000K
= 22.70%
Cisco Systems Inc's return on equity (ROE) has shown some fluctuation over the past five years. The ROE was 22.70% as of July 27, 2024, slightly lower compared to 28.44% in the previous year. Despite this decrease, the current ROE remains at a healthy level, indicating that the company is generating a respectable return for its shareholders.
Looking back further, the ROE was 29.70% on July 30, 2022, which was the highest among the five years provided. This suggests that Cisco was particularly efficient in generating profits relative to shareholders' equity in that year.
In comparison, the ROE was 25.66% on July 31, 2021, and 29.57% on July 25, 2020. These figures indicate that Cisco has generally maintained a strong ROE in recent years, although there has been some variability in performance.
Overall, Cisco Systems Inc's ROE trend indicates that the company has been effectively utilizing its equity to generate profits for shareholders, with some yearly fluctuations but generally maintaining a solid performance in this key profitability ratio.
Peer comparison
Jul 27, 2024