Cisco Systems Inc (CSCO)

Return on equity (ROE)

		Jul 27, 2024	Apr 27, 2024	Jan 27, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 23, 2021	Oct 24, 2020	Jul 25, 2020	Apr 25, 2020	Jan 25, 2020	Oct 26, 2019
Net income (ttm)	US$ in thousands	10,320,000	12,116,000	13,442,000	13,581,000	12,613,000	11,470,000	11,302,000	11,502,000	11,812,000	12,006,000	11,825,000	11,397,000	10,591,000	10,218,000	10,129,000	10,462,000	11,214,000	10,784,000	11,054,000	10,998,000
Total stockholders’ equity	US$ in thousands	45,457,000	45,768,000	46,251,000	45,210,000	44,353,000	42,295,000	41,474,000	40,272,000	39,773,000	40,400,000	39,496,000	42,701,000	41,275,000	40,205,000	39,121,000	38,157,000	37,920,000	35,708,000	35,533,000	34,423,000
ROE		22.70%	26.47%	29.06%	30.04%	28.44%	27.12%	27.25%	28.56%	29.70%	29.72%	29.94%	26.69%	25.66%	25.41%	25.89%	27.42%	29.57%	30.20%	31.11%	31.95%

July 27, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $10,320,000K ÷ $45,457,000K
= 22.70%

The Return on Equity (ROE) of Cisco Systems Inc has displayed a generally positive trend over the past few years, with fluctuations in the range of 22.70% to 31.95%. The ROE peaked at 31.95% in October 2019 and has since demonstrated some variability but has generally remained relatively high, indicating that the company has been effectively utilizing its equity to generate profits for shareholders.

The highest ROE recorded was in early 2020, indicating a strong performance during that period. Despite some fluctuations, the ROE has generally remained above 25% consistently, which is a positive sign of the company's profitability and efficiency in generating returns from shareholders' equity.

Overall, Cisco Systems Inc has shown a strong ability to generate returns for its shareholders in recent years, reflecting the company's effective management of assets and ability to generate profits relative to its equity base.