Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Cisco Systems Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Goodwill	58,660)	38,535)	38,304)	38,168)	33,806)	33,529)
Customer related	6,844)	1,228)	1,354)	1,387)	760)	840)
Technology	6,680)	2,998)	2,631)	3,629)	3,298)	3,270)
Trade name	553)	—)	—)	—)	—)	—)
Other	—)	40)	41)	71)	26)	41)
Purchased intangible assets with finite lives, gross	14,077)	4,266)	4,026)	5,087)	4,084)	4,151)
Accumulated amortization	(2,884)	(2,618)	(1,887)	(1,973)	(2,721)	(2,286)
Purchased intangible assets with finite lives, net	11,193)	1,648)	2,139)	3,114)	1,363)	1,865)
In-process research and development, with indefinite lives	26)	170)	430)	505)	213)	336)
Purchased intangible assets	11,219)	1,818)	2,569)	3,619)	1,576)	2,201)
Goodwill and purchased intangible assets	69,879)	40,353)	40,873)	41,787)	35,382)	35,730)

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Cisco Systems Inc. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Purchased intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Cisco Systems Inc. purchased intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill and purchased intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Cisco Systems Inc. goodwill and purchased intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Cisco Systems Inc., adjustments to financial statements

US$ in millions

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Adjustment to Total Assets
Total assets (as reported)	124,413)	101,852)	94,002)	97,497)	94,853)	97,793)
Less: Goodwill	58,660)	38,535)	38,304)	38,168)	33,806)	33,529)
Total assets (adjusted)	65,753)	63,317)	55,698)	59,329)	61,047)	64,264)
Adjustment to Equity
Equity (as reported)	45,457)	44,353)	39,773)	41,275)	37,920)	33,571)
Less: Goodwill	58,660)	38,535)	38,304)	38,168)	33,806)	33,529)
Equity (adjusted)	(13,203)	5,818)	1,469)	3,107)	4,114)	42)

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

Cisco Systems Inc., Financial Data: Reported vs. Adjusted

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Cisco Systems Inc., adjusted financial ratios

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Total Asset Turnover
Reported total asset turnover	0.43	0.56	0.55	0.51	0.52	0.53
Adjusted total asset turnover	0.82	0.90	0.93	0.84	0.81	0.81
Financial Leverage
Reported financial leverage	2.74	2.30	2.36	2.36	2.50	2.91
Adjusted financial leverage	—	10.88	37.92	19.10	14.84	1,530.10
Return on Equity (ROE)
Reported ROE	22.70%	28.44%	29.70%	25.66%	29.57%	34.62%
Adjusted ROE	—	216.79%	804.08%	340.88%	272.58%	27,669.05%
Return on Assets (ROA)
Reported ROA	8.29%	12.38%	12.57%	10.86%	11.82%	11.88%
Adjusted ROA	15.70%	19.92%	21.21%	17.85%	18.37%	18.08%

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cisco Systems Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Cisco Systems Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Cisco Systems Inc., Financial Ratios: Reported vs. Adjusted

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	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Total assets	124,413)	101,852)	94,002)	97,497)	94,853)	97,793)
Activity Ratio
Total asset turnover¹	0.43	0.56	0.55	0.51	0.52	0.53
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Adjusted total assets	65,753)	63,317)	55,698)	59,329)	61,047)	64,264)
Activity Ratio
Adjusted total asset turnover²	0.82	0.90	0.93	0.84	0.81	0.81

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

2024 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 53,803 ÷ 124,413 = 0.43

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 53,803 ÷ 65,753 = 0.82

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cisco Systems Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	124,413)	101,852)	94,002)	97,497)	94,853)	97,793)
Equity	45,457)	44,353)	39,773)	41,275)	37,920)	33,571)
Solvency Ratio
Financial leverage¹	2.74	2.30	2.36	2.36	2.50	2.91
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	65,753)	63,317)	55,698)	59,329)	61,047)	64,264)
Adjusted equity	(13,203)	5,818)	1,469)	3,107)	4,114)	42)
Solvency Ratio
Adjusted financial leverage²	—	10.88	37.92	19.10	14.84	1,530.10

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

2024 Calculations

¹ Financial leverage = Total assets ÷ Equity
= 124,413 ÷ 45,457 = 2.74

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity
= 65,753 ÷ -13,203 = —

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	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Equity	45,457)	44,353)	39,773)	41,275)	37,920)	33,571)
Profitability Ratio
ROE¹	22.70%	28.44%	29.70%	25.66%	29.57%	34.62%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Adjusted equity	(13,203)	5,818)	1,469)	3,107)	4,114)	42)
Profitability Ratio
Adjusted ROE²	—	216.79%	804.08%	340.88%	272.58%	27,669.05%

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

2024 Calculations

¹ ROE = 100 × Net income ÷ Equity
= 100 × 10,320 ÷ 45,457 = 22.70%

² Adjusted ROE = 100 × Net income ÷ Adjusted equity
= 100 × 10,320 ÷ -13,203 = —

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	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Total assets	124,413)	101,852)	94,002)	97,497)	94,853)	97,793)
Profitability Ratio
ROA¹	8.29%	12.38%	12.57%	10.86%	11.82%	11.88%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Adjusted total assets	65,753)	63,317)	55,698)	59,329)	61,047)	64,264)
Profitability Ratio
Adjusted ROA²	15.70%	19.92%	21.21%	17.85%	18.37%	18.08%

Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 10,320 ÷ 124,413 = 8.29%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 10,320 ÷ 65,753 = 15.70%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Cisco Systems Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Cisco Systems Inc. (NASDAQ:CSCO)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Cisco Systems Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Cisco Systems Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)