Cisco Systems Inc., adjustment to net income

US$ in millions

12 months ended:	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Net income (as reported)	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Add: Available-for-sale investments, change in net unrealized gains and losses, net of tax	146)	(78)	(557)	(95)	336)	459)
Less: Available-for-sale investments, net (gains) losses reclassified into earnings, net of tax	53)	17)	(4)	(38)	(21)	19)
Net income (adjusted)	10,519)	12,552)	11,251)	10,458)	11,529)	12,099)

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Cisco Systems Inc., adjusted profitability 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	19.55%	22.02%	21.82%	20.99%	23.38%	23.31%
Return on Equity (ROE)
Reported ROE	22.70%	28.44%	29.70%	25.66%	29.57%	34.62%
Adjusted ROE	23.14%	28.30%	28.29%	25.34%	30.40%	36.04%
Return on Assets (ROA)
Reported ROA	8.29%	12.38%	12.57%	10.86%	11.82%	11.88%
Adjusted ROA	8.45%	12.32%	11.97%	10.73%	12.15%	12.37%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cisco Systems Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cisco Systems Inc. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Cisco Systems Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	10,519)	12,552)	11,251)	10,458)	11,529)	12,099)
Revenue	53,803)	56,998)	51,557)	49,818)	49,301)	51,904)
Profitability Ratio
Adjusted net profit margin²	19.55%	22.02%	21.82%	20.99%	23.38%	23.31%

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 × 10,519 ÷ 53,803 = 19.55%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cisco Systems Inc. adjusted net profit margin 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)
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	10,519)	12,552)	11,251)	10,458)	11,529)	12,099)
Equity	45,457)	44,353)	39,773)	41,275)	37,920)	33,571)
Profitability Ratio
Adjusted ROE²	23.14%	28.30%	28.29%	25.34%	30.40%	36.04%

2024 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Equity
= 100 × 10,519 ÷ 45,457 = 23.14%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cisco Systems Inc. adjusted ROE 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)
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	10,519)	12,552)	11,251)	10,458)	11,529)	12,099)
Total assets	124,413)	101,852)	94,002)	97,497)	94,853)	97,793)
Profitability Ratio
Adjusted ROA²	8.45%	12.32%	11.97%	10.73%	12.15%	12.37%

2024 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 10,519 ÷ 124,413 = 8.45%

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

Cisco Systems Inc. (NASDAQ:CSCO)

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