Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Cisco Systems Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Federal	1,939)	3,754)	2,203)	1,959)	1,101)	1,760)
State	388)	623)	458)	513)	264)	302)
Foreign	559)	412)	313)	583)	1,429)	1,238)
Current	2,886)	4,789)	2,974)	3,055)	2,794)	3,300)
Federal	(883)	(1,955)	(176)	(203)	(374)	(84)
State	11)	(175)	(156)	(46)	287)	(2)
Foreign	(100)	46)	23)	(135)	49)	(264)
Deferred	(972)	(2,084)	(309)	(384)	(38)	(350)
Provision for income taxes	1,914)	2,705)	2,665)	2,671)	2,756)	2,950)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Cisco Systems Inc. current increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Cisco Systems Inc. deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cisco Systems Inc. provision for income taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Cisco Systems Inc., effective income tax rate (EITR) reconciliation

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State taxes, net of federal tax benefit	2.80%	2.40%	1.70%	2.70%	3.50%	2.00%
Foreign income at other than U.S. rates	-0.30%	-0.10%	0.80%	1.50%	-1.50%	-4.50%
Tax credits	-2.40%	-0.30%	-1.60%	-1.40%	-0.90%	-1.70%
Foreign-derived intangible income deduction	-5.50%	-5.80%	-3.90%	-4.20%	-2.60%	-1.30%
Stock-based compensation	0.70%	1.10%	0.30%	0.60%	-0.10%	-0.60%
Other, net	-0.70%	-0.60%	0.10%	-0.10%	0.30%	-0.80%
Effective income tax rate, before impact of the Tax Act	15.60%	17.70%	18.40%	20.10%	19.70%	14.10%
Impact of the Tax Act	0.00%	0.00%	0.00%	0.00%	0.00%	6.10%
Effective income tax rate	15.60%	17.70%	18.40%	20.10%	19.70%	20.20%

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
Effective income tax rate, before impact of the Tax Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cisco Systems Inc. effective income tax rate, before impact of the Tax Act decreased from 2022 to 2023 and from 2023 to 2024.

Cisco Systems Inc., components of deferred tax assets and liabilities

US$ in millions

	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Allowance for accounts receivable and returns	94)	81)	90)	68)	110)	127)
Sales-type and direct-financing leases	23)	22)	29)	157)	179)	176)
Inventory write-downs and capitalization	530)	452)	430)	392)	350)	409)
Deferred foreign income	277)	218)	210)	164)	253)	—)
IPR&D and purchased intangible assets	1,039)	1,082)	1,184)	1,195)	1,289)	1,427)
Depreciation	184)	16)	10)	—)	—)	—)
Deferred revenue	2,034)	1,801)	1,744)	1,526)	1,182)	1,150)
Credits and net operating loss carryforwards	1,863)	1,218)	1,336)	1,264)	1,105)	1,241)
Share-based compensation expense	297)	198)	138)	123)	135)	164)
Accrued compensation	275)	328)	333)	333)	353)	342)
Lease liabilities	308)	246)	248)	277)	240)	—)
Capitalized research expenditures	3,030)	2,042)	149)	303)	223)	—)
Other	442)	484)	439)	454)	348)	419)
Gross deferred tax assets	10,396)	8,188)	6,340)	6,256)	5,767)	5,455)
Valuation allowance	(1,024)	(754)	(834)	(771)	(700)	(457)
Deferred tax assets	9,372)	7,434)	5,506)	5,485)	5,067)	4,998)
Goodwill and purchased intangible assets	(2,808)	(602)	(767)	(686)	(577)	(705)
Depreciation	—)	—)	—)	(164)	(179)	(141)
Unrealized gains on investments	—)	—)	(26)	(112)	(119)	(70)
ROU lease assets	(259)	(234)	(237)	(260)	(222)	—)
Other	(119)	(84)	(82)	(37)	(61)	(112)
Deferred tax liabilities	(3,186)	(920)	(1,112)	(1,259)	(1,158)	(1,028)
Net deferred tax assets (liabilities)	6,186)	6,514)	4,394)	4,226)	3,909)	3,970)

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
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cisco Systems Inc. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cisco Systems Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Cisco Systems Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Cisco Systems Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
	Deferred tax assets	6,262)	6,576)	4,449)	4,360)	3,990)	4,065)
	Deferred tax liabilities	76)	62)	55)	134)	81)	95)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Cisco Systems Inc. deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Cisco Systems Inc. deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

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: Noncurrent deferred tax assets, net	6,262)	6,576)	4,449)	4,360)	3,990)	4,065)
Total assets (adjusted)	118,151)	95,276)	89,553)	93,137)	90,863)	93,728)
Adjustment to Total Liabilities
Total liabilities (as reported)	78,956)	57,499)	54,229)	56,222)	56,933)	64,222)
Less: Noncurrent deferred tax liabilities, net	76)	62)	55)	134)	81)	95)
Total liabilities (adjusted)	78,880)	57,437)	54,174)	56,088)	56,852)	64,127)
Adjustment to Equity
Equity (as reported)	45,457)	44,353)	39,773)	41,275)	37,920)	33,571)
Less: Net deferred tax assets (liabilities)	6,186)	6,514)	4,394)	4,226)	3,909)	3,970)
Equity (adjusted)	39,271)	37,839)	35,379)	37,049)	34,011)	29,601)
Adjustment to Net Income
Net income (as reported)	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Add: Deferred income tax expense (benefit)	(972)	(2,084)	(309)	(384)	(38)	(350)
Net income (adjusted)	9,348)	10,529)	11,503)	10,207)	11,176)	11,271)

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
Net Profit Margin
Reported net profit margin	19.18%	22.13%	22.91%	21.26%	22.75%	22.39%
Adjusted net profit margin	17.37%	18.47%	22.31%	20.49%	22.67%	21.72%
Total Asset Turnover
Reported total asset turnover	0.43	0.56	0.55	0.51	0.52	0.53
Adjusted total asset turnover	0.46	0.60	0.58	0.53	0.54	0.55
Financial Leverage
Reported financial leverage	2.74	2.30	2.36	2.36	2.50	2.91
Adjusted financial leverage	3.01	2.52	2.53	2.51	2.67	3.17
Return on Equity (ROE)
Reported ROE	22.70%	28.44%	29.70%	25.66%	29.57%	34.62%
Adjusted ROE	23.80%	27.83%	32.51%	27.55%	32.86%	38.08%
Return on Assets (ROA)
Reported ROA	8.29%	12.38%	12.57%	10.86%	11.82%	11.88%
Adjusted ROA	7.91%	11.05%	12.84%	10.96%	12.30%	12.03%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cisco Systems Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cisco Systems Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cisco Systems Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Cisco Systems Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted 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)
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Profitability Ratio
Net profit margin¹	19.18%	22.13%	22.91%	21.26%	22.75%	22.39%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	9,348)	10,529)	11,503)	10,207)	11,176)	11,271)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Profitability Ratio
Adjusted net profit margin²	17.37%	18.47%	22.31%	20.49%	22.67%	21.72%

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 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 10,320 ÷ 53,803 = 19.18%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 9,348 ÷ 53,803 = 17.37%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cisco Systems Inc. adjusted net profit margin 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Adjusted total assets	118,151)	95,276)	89,553)	93,137)	90,863)	93,728)
Activity Ratio
Adjusted total asset turnover²	0.46	0.60	0.58	0.53	0.54	0.55

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 ÷ 118,151 = 0.46

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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 improved from 2022 to 2023 but then deteriorated significantly 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	118,151)	95,276)	89,553)	93,137)	90,863)	93,728)
Adjusted equity	39,271)	37,839)	35,379)	37,049)	34,011)	29,601)
Solvency Ratio
Adjusted financial leverage²	3.01	2.52	2.53	2.51	2.67	3.17

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
= 118,151 ÷ 39,271 = 3.01

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cisco Systems Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	9,348)	10,529)	11,503)	10,207)	11,176)	11,271)
Adjusted equity	39,271)	37,839)	35,379)	37,049)	34,011)	29,601)
Profitability Ratio
Adjusted ROE²	23.80%	27.83%	32.51%	27.55%	32.86%	38.08%

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

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted equity
= 100 × 9,348 ÷ 39,271 = 23.80%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Cisco Systems Inc. adjusted ROE 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	9,348)	10,529)	11,503)	10,207)	11,176)	11,271)
Adjusted total assets	118,151)	95,276)	89,553)	93,137)	90,863)	93,728)
Profitability Ratio
Adjusted ROA²	7.91%	11.05%	12.84%	10.96%	12.30%	12.03%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 9,348 ÷ 118,151 = 7.91%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)