Cisco Systems (FRA:CIS) ROCE % : 18.19% (As of Jan. 2024)

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What is Cisco Systems ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cisco Systems's annualized ROCE % for the quarter that ended in Jan. 2024 was 18.19%.

Cisco Systems ROCE % Historical Data

The historical data trend for Cisco Systems's ROCE % 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.

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Cisco Systems ROCE % Chart

Cisco Systems Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROCE %

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21.35

21.21

19.19

22.88

21.74

Cisco Systems Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															19.68	23.47	26.19	26.19	18.19

Cisco Systems ROCE % Calculation

Cisco Systems's annualized ROCE % for the fiscal year that ended in Jul. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	14233.48	/	( ( (92403.966 - 25204.12)	+	(92074.208 - 28303.336) )	/ 2 )
	=	14233.48	/	( (67199.846	+	63770.872)	/ 2 )
	=	14233.48	/	65485.359
	=	21.74 %

Cisco Systems's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	12047.832	/	( ( (93546.554 - 25602.145)	+	(92877.732 - 28321.218) )	/ 2 )
	=	12047.832	/	( ( 67944.409	+	64556.514 )	/ 2 )
	=	12047.832	/	66250.4615
	=	18.19 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Cisco Systems (FRA:CIS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cisco Systems ROCE % Related Terms

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Cisco Systems (FRA:CIS) Business Description

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Address

170 West Tasman Drive, San Jose, CA, USA, 95134-1706

Website

https://www.cisco.com

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

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