Cisco Systems Inc (CSCO)
Return on total capital
| Jul 31, 2025 | Apr 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,048,000 | 12,140,000 | 11,408,000 | 10,709,000 | 10,616,000 | 11,083,000 | 11,746,000 | 13,707,000 | 15,668,000 | 16,969,000 | 18,270,000 | 17,783,000 | 17,296,000 | 16,236,000 | 15,176,000 | 14,685,000 | 14,194,000 | 14,181,000 | 14,168,000 | 14,484,000 |
| 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 |
| Total stockholders’ equity | US$ in thousands | 47,116,000 | 45,935,000 | 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 |
| Return on total capital | 27.69% | 26.43% | 25.06% | 23.65% | 23.35% | 17.03% | 25.66% | 20.81% | 33.88% | 32.07% | 40.41% | 34.28% | 39.00% | 31.83% | 35.88% | 30.00% | 34.22% | 28.88% | 35.18% | 30.24% |
July 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,048,000K ÷ ($—K + $47,116,000K)
= 27.69%
The analysis of Cisco Systems Inc.'s return on total capital over the designated period reveals notable fluctuations. At the beginning of the timeframe, in October 2022, the ratio was approximately 30.24%, indicating a strong initial return upon capital deployment. This value increased significantly by October 2022, reaching 35.18%, suggesting enhanced profitability or effective utilization of total capital during that period.
Subsequently, the ratio experienced some decline in early 2023, with January 2023 figures showing a decrease to 28.88%, although the adjacent data point at January 31, 2023, reflects a partial recovery to 34.22%. Throughout mid-2023, the ratio displayed upward momentum, peaking at 39.00% in July 2023, which marks the highest observed value within this timeframe.
Following this peak, a modest downward trend commenced, with October 2023 reporting a decrease to 34.28%. This downward trend continued into early 2024, with January 2024's ratio declining to approximately 32.07% and further dropping to 20.81% by April 2024. The decline reflects a period of decreased attractiveness or efficiency in capital utilization.
As 2024 progressed, the ratio demonstrated signs of recovery, increasing to 25.66% in April, and reaching 17.03% in July 2024. The ratio slightly improved again by October 2024 to 23.65%, followed by a gradual increase through early 2025, culminating in March 2025 at approximately 27.69%. Throughout the observed period, the data indicates cyclicality with periods of peak capital performance followed by declines, reflecting varying operational efficiency and profitability dynamics over time.
In summary, Cisco's return on total capital has demonstrated considerable variability, characterized by periods of substantial growth followed by declines, which may be influenced by market conditions, strategic investments, or operational efficiencies. The overall trend showcases periods of strong capital efficiency interspersed with downturns, highlighting the company's evolving financial performance over the analyzed timeframe.
Peer comparison
Jul 31, 2025