Cisco Systems Inc (CSCO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,408,000 | 10,709,000 | 10,616,000 | 10,910,000 | 11,573,000 | 13,411,000 | 15,372,000 | 16,846,000 | 18,147,000 | 17,750,000 | 17,263,000 | 16,203,000 | 15,143,000 | 14,685,000 | 14,194,000 | 14,181,000 | 14,168,000 | 14,484,000 | 14,399,000 | 14,581,000 |
| Long-term debt | US$ in thousands | — | — | — | 19,621,000 | — | 20,102,000 | — | 6,669,000 | — | 6,660,000 | — | 6,658,000 | — | 6,663,000 | — | 7,637,000 | — | 7,629,000 | — | 8,416,000 |
| 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 |
| Return on total capital | 25.06% | 23.65% | 23.35% | 16.76% | 25.29% | 20.36% | 33.24% | 31.83% | 40.14% | 34.22% | 38.92% | 31.76% | 35.80% | 30.00% | 34.22% | 28.88% | 35.18% | 30.24% | 36.20% | 30.26% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $11,408,000K ÷ ($—K + $45,530,000K)
= 25.06%
The return on total capital for Cisco Systems Inc has shown fluctuations over the periods indicated. The values ranged from a low of 16.76% on July 27, 2024, to a high of 40.14% on October 31, 2023. Generally, the return on total capital has been relatively high, with most values above 25%. This indicates that Cisco has been effectively generating returns from its total invested capital. It is important for investors to monitor these trends to assess the company's ability to generate profits relative to the total capital employed in its operations. The company's ability to consistently generate favorable returns on total capital is crucial for sustainable growth and value creation for its shareholders.
Peer comparison
Jan 31, 2025