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.