Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Cisco Systems Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Cisco Systems Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Cisco Systems Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Cisco Systems Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Cisco Systems Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Cisco Systems Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Cisco Systems Inc., gross profit margin calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 34,828) | 35,753) | 32,248) | 31,894) | 31,683) | 32,666) | |
| Revenue | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 64.73% | 62.73% | 62.55% | 64.02% | 64.26% | 62.94% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Apple Inc. | 46.21% | 44.13% | 43.31% | 41.78% | 38.23% | 37.82% | |
| Arista Networks Inc. | — | 61.95% | 61.07% | 63.80% | 63.94% | 64.06% | |
| Super Micro Computer Inc. | — | 18.01% | 15.40% | 15.03% | 15.76% | 14.16% | |
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).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 34,828 ÷ 53,803 = 64.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Cisco Systems Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Cisco Systems Inc., operating profit margin calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 12,181) | 15,031) | 13,969) | 12,833) | 13,620) | 14,219) | |
| Revenue | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 22.64% | 26.37% | 27.09% | 25.76% | 27.63% | 27.39% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Apple Inc. | 31.51% | 29.82% | 30.29% | 29.78% | 24.15% | 24.57% | |
| Arista Networks Inc. | — | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | |
| Super Micro Computer Inc. | — | 10.68% | 6.45% | 3.48% | 2.57% | 2.78% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 29.20% | 29.70% | 29.10% | 24.49% | 24.86% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.21% | 28.31% | 28.72% | 24.93% | 25.33% | |
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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 12,181 ÷ 53,803 = 22.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Cisco Systems Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Profit Margin
Cisco Systems Inc., net profit margin calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Apple Inc. | 23.97% | 25.31% | 25.31% | 25.88% | 20.91% | 21.24% | |
| Arista Networks Inc. | — | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | |
| Super Micro Computer Inc. | — | 8.98% | 5.49% | 3.14% | 2.52% | 2.05% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 24.78% | 24.87% | 25.16% | 21.05% | 21.32% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 22.04% | 23.93% | 25.58% | 21.38% | 22.17% | |
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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 10,320 ÷ 53,803 = 19.18%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Cisco Systems Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Cisco Systems Inc., ROE calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Apple Inc. | 164.59% | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% | |
| Arista Networks Inc. | — | 28.91% | 27.68% | 21.13% | 19.11% | 29.71% | |
| Super Micro Computer Inc. | — | 32.45% | 20.00% | 10.20% | 7.91% | 7.64% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | — | 97.10% | 117.05% | 97.06% | 64.42% | 53.02% | |
| ROE, Industry | |||||||
| Information Technology | — | 31.78% | 38.36% | 42.36% | 35.12% | 36.53% | |
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).
1 2024 Calculation
ROE = 100 × Net income ÷ Equity
= 100 × 10,320 ÷ 45,457 = 22.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Cisco Systems Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Assets (ROA)
Cisco Systems Inc., ROA calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Apple Inc. | 25.68% | 27.51% | 28.29% | 26.97% | 17.73% | 16.32% | |
| Arista Networks Inc. | — | 20.98% | 19.96% | 14.66% | 13.39% | 20.54% | |
| Super Micro Computer Inc. | — | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | — | 24.00% | 24.80% | 23.27% | 16.30% | 15.34% | |
| ROA, Industry | |||||||
| Information Technology | — | 13.01% | 14.99% | 15.62% | 12.12% | 12.78% | |
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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 10,320 ÷ 124,413 = 8.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Cisco Systems Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |