Cisco Systems Inc (CSCO)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 9,463,000 | 8,921,000 | 8,096,000 | 8,568,000 | 9,040,000 | 10,792,000 | 12,544,000 | 13,868,000 | 15,192,000 | 14,766,000 | 14,340,000 | 13,155,000 | 11,970,000 | 11,428,000 | 10,886,000 | 10,928,000 | 10,970,000 | 11,344,000 | 11,647,000 | 11,805,000 |
| Total stockholders’ equity | US$ in thousands | 45,530,000 | 45,277,000 | 45,457,000 | 45,457,000 | 45,768,000 | 45,768,000 | 46,251,000 | 46,251,000 | 45,210,000 | 45,210,000 | 44,353,000 | 44,353,000 | 42,295,000 | 42,295,000 | 41,474,000 | 41,474,000 | 40,272,000 | 40,272,000 | 39,773,000 | 39,773,000 |
| ROE | 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% | 29.28% | 29.68% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $9,463,000K ÷ $45,530,000K
= 20.78%
Return on equity (ROE) is a key profitability ratio that measures a company's ability to generate profit from its shareholders' equity. Looking at the data provided for Cisco Systems Inc, we can see some fluctuations in the ROE over the specified period.
Cisco's ROE stood at 29.68% as of July 30, 2022, indicating that the company was generating $0.2968 in profit for every dollar of shareholders' equity. The ROE remained relatively stable around the high 20s until January 31, 2023, where it dipped slightly to 26.25%. However, the ROE picked up in the following quarters, reaching a peak of 33.60% on October 31, 2023.
Subsequently, Cisco's ROE experienced a downward trend, dropping to 17.81% by July 31, 2024. This decline continued, with the ROE further decreasing to 19.70% by October 31, 2024. However, there was a slight improvement in the following quarter as of January 31, 2025, with the ROE rising to 20.78%.
Overall, Cisco Systems Inc's ROE exhibited fluctuations over the periods analyzed, with both peaks and troughs. Investors and analysts may want to further investigate the factors behind these fluctuations to gain a deeper understanding of the company's profitability and efficiency in utilizing its equity to generate returns.
Peer comparison
Jan 31, 2025