Cisco Systems Inc (CSCO)
Return on total capital
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,181,000 | 15,745,000 | 14,837,000 | 13,696,000 | 14,555,000 |
| Long-term debt | US$ in thousands | 19,621,000 | 6,658,000 | 8,416,000 | 9,018,000 | 11,578,000 |
| Total stockholders’ equity | US$ in thousands | 45,457,000 | 44,353,000 | 39,773,000 | 41,275,000 | 37,920,000 |
| Return on total capital | 18.72% | 30.87% | 30.79% | 27.23% | 29.41% |
July 27, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,181,000K ÷ ($19,621,000K + $45,457,000K)
= 18.72%
Cisco Systems Inc's return on total capital has fluctuated over the past five years, ranging from 18.72% in July 2024 to a high of 30.87% in July 2023. Despite the slight decrease in the most recent year, the company has generally maintained a strong performance in generating returns from its total capital investment. This indicates that Cisco has been effectively utilizing its capital resources to generate profits for its shareholders. The downward trend in the most recent year could be a point of concern and may warrant further investigation to understand the reasons behind the decrease in the return on total capital. Overall, Cisco Systems Inc has demonstrated a consistent ability to generate favorable returns on its total capital over the years.
Peer comparison
Jul 27, 2024