Cisco Systems Inc. (NASDAQ:CSCO)

The financial data reveals several notable trends and fluctuations across the reported periods.

Market (fair) value of Cisco

The market value shows an overall increasing trend from 2020 through 2025, rising from 174,151 million US$ in 2020 to 289,784 million US$ in 2025. However, there are fluctuations within this period. The market value peaked at 246,684 million US$ in 2021, followed by a dip to 185,576 million US$ in 2022. Subsequently, a recovery occurred in 2023 reaching 223,972 million US$, with a slight decrease in 2024, and finally reaching the highest value in 2025.

Invested capital

Invested capital showed a relatively steady level from 2020 until 2023, ranging narrowly between approximately 53,498 million and 58,979 million US$. However, a significant increase is observed in 2024 where invested capital jumped to 91,785 million US$, remaining stable into 2025. This abrupt rise indicates a substantial capital investment or revaluation in these later years.

Market value added (MVA)

The MVA follows a general pattern similar to the market value, beginning at 120,653 million US$ in 2020 and peaking at 189,224 million US$ in 2021. It then declined sharply in 2022 and 2024 to approximately 126,000 million US$, while rebounding to 164,993 million US$ in 2023 and rising sharply again to 197,995 million US$ in 2025. Despite the fluctuations, the MVA consistently remains high, reflecting significant value creation over invested capital.

Market Value Added (MVA)

The market value added exhibits considerable fluctuations over the observed periods. It notably increases from 120,653 million USD in 2020 to a peak of 189,224 million USD in 2021, followed by a decline to 126,513 million USD in 2022. Subsequently, it recovers to 164,993 million USD in 2023 before decreasing again to 126,460 million USD in 2024. The latest figure for 2025 shows a significant increase, reaching 197,995 million USD, the highest value in the series. The pattern indicates volatility with alternating periods of growth and decline.

Invested Capital

Invested capital demonstrates an overall upward trend, starting at 53,498 million USD in 2020 and gradually increasing to 59,063 million USD in 2022. It remains relatively stable around 58,979 million USD in 2023 before experiencing a notable jump to 91,785 million USD in 2024, maintaining almost the same level at 91,789 million USD in 2025. This substantial increase in invested capital in the latter years suggests a strategic expansion or increased asset base.

MVA Spread Ratio

The MVA spread ratio reflects the relationship between market value added and invested capital, expressed as a percentage. It peaks in 2021 at 329.31%, indicating a high return on invested capital relative to market value added. This is followed by a decline to 214.2% in 2022 and a partial recovery to 279.75% in 2023. A significant drop occurs in 2024 to 137.78%, likely influenced by the sharp increase in invested capital. The ratio then rises again to 215.71% in 2025. The fluctuations in this ratio suggest changing efficiency or market valuation dynamics relative to the capital invested.

Overall Insights

The data reveals a complex dynamic between market valuation and invested capital. While market value added experiences volatility, invested capital shows a marked increase in the latter years. The MVA spread ratio's fluctuations highlight varying levels of market confidence or operational efficiency over time. The substantial increase in invested capital in 2024 corresponds with a dip in the MVA spread ratio, suggesting the newly invested resources had not yet fully translated into proportional market value gains by that period. The strong rebound in market value added and MVA spread ratio in 2025 indicates potential improved performance or market revaluation subsequent to increased investments.

The data provided reveals several notable trends regarding the financial performance indicators over the specified periods.

Market Value Added (MVA)

The MVA exhibits significant fluctuations over the years. Starting at 120,653 million USD in 2020, it rose sharply to 189,224 million USD in 2021. However, a decline is observed in 2022 down to 126,513 million USD, followed by a rebound to 164,993 million USD in 2023. The figure then decreases again in 2024 to 126,460 million USD before experiencing another increase to 197,995 million USD in 2025. This pattern suggests a cyclical behavior or responsiveness to external factors affecting market valuation.

Adjusted Revenue

Adjusted revenue shows a more stable and upward trend, though with moderate variation. Beginning at 51,280 million USD in 2020, revenue slightly increased to 51,536 million USD in 2021 and continued a gradual rise to 52,657 million USD in 2022. A more pronounced increase occurred in 2023, reaching 59,284 million USD, followed by a slight decrease to 56,728 million USD in 2024 and a minimal rise to 56,958 million USD in 2025. Overall, the adjusted revenue demonstrates a general positive growth trajectory with minor fluctuations.

MVA Margin

The MVA margin percentage closely mirrors the fluctuations seen in MVA, indicating variability in market valuation relative to revenue. The margin starts at 235.28% in 2020 and peaks sharply at 367.17% in 2021. It then declines to 240.26% in 2022 before increasing again to 278.31% in 2023. The margin decreases to 222.92% in 2024, followed by another significant rise to 347.62% in 2025. These variations reflect the inconsistent correlation between market value and revenue generation over time, possibly influenced by market perception, operational changes, or external economic conditions.

In summary, while adjusted revenue evidences a generally upward trend with moderate fluctuations, the market value added and MVA margin display more pronounced volatility. The alternating increases and decreases in market-related metrics may indicate sensitivity to external market forces or internal strategic shifts that impact overall valuation beyond core revenue performance.