Market Cap : 207 B | Enterprise Value : 193.71 B | PE Ratio : 18.51 | PB Ratio : 4.99 |
---|
CSCO has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
CSCO has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Cisco Systems's Operating Income for the three months ended in Jan. 2023 was $3,535 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2023 was $14,115 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cisco Systems's Operating Income for the three months ended in Jan. 2023 was $3,535 Mil. Cisco Systems's Revenue for the three months ended in Jan. 2023 was $13,592 Mil. Therefore, Cisco Systems's Operating Margin % for the quarter that ended in Jan. 2023 was 26.01%.
Good Sign:
Cisco Systems Inc operating margin is expanding. Margin expansion is usually a good sign.
Cisco Systems's 5-Year average Growth Rate for Operating Margin % was 1.00% per year.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cisco Systems's annualized ROC % for the quarter that ended in Jan. 2023 was 14.47%. Cisco Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2023 was 715.85%.
The historical data trend for Cisco Systems's Operating Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in Jan. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $14,115 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Cisco Systems's annualized ROC % for the quarter that ended in Jan. 2023 is calculated as:
ROC % (Q: Jan. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Oct. 2022 ) | + | Invested Capital (Q: Jan. 2023 )) | / count ) |
= | 14140 * ( 1 - 18.8% ) | / | ( (78603 | + | 80048) | / 2 ) |
= | 11481.68 | / | 79325.5 | |||
= | 14.47 % |
where
Invested Capital | (Q: Oct. 2022 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 93054 | - | 3206 | - | ( 19784 | - | max(0, 24896 | - | 36141 | + | 19784 | )) |
= | 78603 |
Invested Capital | (Q: Jan. 2023 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 95840 | - | 4529 | - | ( 22061 | - | max(0, 27252 | - | 38515 | + | 22061 | )) |
= | 80048 |
Note: The Operating Income data used here is four times the quarterly (Jan. 2023) data.
2. Joel Greenblatt's definition of Return on Capital:
Cisco Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2023 is calculated as:
ROC (Joel Greenblatt) % | (Q: Jan. 2023 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Oct. 2022 | Q: Jan. 2023 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 14088 | / | ( ( (1972 + max(-10973, 0)) | + | (1964 + max(-13105, 0)) ) | / | 2 ) |
= | 14088 | / | ( ( 1972 | + | 1964 ) | / | 2 ) |
= | 14088 | / | 1968 | ||||
= | 715.85 % |
where Working Capital is:
Working Capital | (Q: Oct. 2022 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (5439 | + | 2664 | + | 4571) | - | (3206 | + | 12578 | + | 7863) |
= | -10973 |
Working Capital | (Q: Jan. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (5237 | + | 3140 | + | 4520) | - | (4529 | + | 13109 | + | 8364) |
= | -13105 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Jan. 2023) EBIT data.
3. Operating Income is also linked to Operating Margin %:
Cisco Systems's Operating Margin % for the quarter that ended in Jan. 2023 is calculated as:
Operating Margin % | = | Operating Income (Q: Jan. 2023 ) | / | Revenue (Q: Jan. 2023 ) |
= | 3535 | / | 13592 | |
= | 26.01 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Cisco Systems's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.
Sarah Rae Murphy | director | C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134 |
Jeffery S. Sharritts | officer: EVP & Chief Cust & Prtnr Offcr | 1200 ABERNATHY RD., NE, STE 1200, ATLANTA GA 30328 |
Deborah L Stahlkopf | officer: EVP and Chief Legal Officer | C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134 |
Marianna Tessel | director | C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043 |
John D Harris | director | C/O FLEXTRONICS INTERNATIONAL USA, INC., 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002 |
Richard Scott Herren | officer: EVP and CFO | 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309 |
Wesley G Bush | director | 333 MAPLE AVENUE EAST, #3080, VIENNA VA 22180 |
Lisa T Su | director | C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054 |
Carol B Tome | director | 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328 |
Geraldine Elliott | officer: EVP, Chief Sales & Mktg Offcr | 1194 N. MATHILDA AVE., SUNNYVALE CA 94089 |
Maria Martinez | officer: EVP, Chief Customer Exp Offcr | THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105 |
Mark Garrett | director | 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715 |
Irving Tan | officer: SVP, Operations and Digital | 170 WEST TASMAN DRIVE, SAN JOSE CA 95134 |
David Goeckeler | officer: EVP, Networking and Security | C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119 |
Brent L Saunders | director | 2000 GALLOPING HILL ROAD, C/O SCHERING PLOUGH CORP, KENILWORTH NJ 07033 |
From GuruFocus
By Business Wire 01-04-2023
By PRNewswire 01-31-2023
By PRNewswire 10-25-2022
By PRNewswire 11-29-2022
By Business Wire 10-20-2022
Other Sources
By Yahoo Finance 2023-01-20
By Yahoo Finance 2023-01-26
By Reuters 2023-01-25
By Bloomberg 2023-01-31
By Zacks 2023-01-30
By CNBC 2023-01-31
By Zacks 2023-01-31
By Yahoo Finance 2023-01-31
By Yahoo Finance 2023-01-20
By Yahoo Finance 2023-01-23
By Zacks 2023-01-26
By Reuters 2023-01-20
By CNBC 2023-01-20
By Zacks 2023-01-24
By Yahoo Finance 2023-01-20