Cisco Systems Inc (CSCO)
Return on total capital
| Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,240,000 | 12,181,000 | 15,745,000 | 15,745,000 | 14,837,000 |
| Long-term debt | US$ in thousands | — | 19,621,000 | — | 6,658,000 | — |
| Total stockholders’ equity | US$ in thousands | 45,457,000 | 45,457,000 | 44,353,000 | 44,353,000 | 39,773,000 |
| Return on total capital | 29.13% | 18.72% | 35.50% | 30.87% | 37.30% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $13,240,000K ÷ ($—K + $45,457,000K)
= 29.13%
Cisco Systems Inc's return on total capital has shown some fluctuations over the past few years.
As of July 31, 2022, the return on total capital was reported at 37.30%. This indicates that Cisco was generating a return of 37.30% on its total capital investments at that time.
In the following years, there were some fluctuations in the return on total capital. By July 29, 2023, the return had decreased to 30.87%, but then showed an improvement by July 31, 2023, reaching 35.50%.
However, by July 27, 2024, there was a significant drop in the return on total capital to 18.72%, indicating a lower return generated on the total capital invested. This drop was followed by a moderate recovery as of July 31, 2024, with the return on total capital increasing to 29.13%.
Overall, Cisco Systems Inc's return on total capital has been variable, with fluctuations in performance over the years. Investors and stakeholders may want to closely monitor this metric to assess the company's efficiency in generating returns from its total capital investments.
Peer comparison
Jul 31, 2024