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Cisco Systems (XBRU:CIS) Return-on-Tangible-Equity : 213.24% (As of Jan. 2024)


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What is Cisco Systems Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cisco Systems's annualized net income for the quarter that ended in Jan. 2024 was $10,536 Mil. Cisco Systems's average shareholder tangible equity for the quarter that ended in Jan. 2024 was $4,941 Mil. Therefore, Cisco Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 213.24%.

The historical rank and industry rank for Cisco Systems's Return-on-Tangible-Equity or its related term are showing as below:

XBRU:CIS' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.51   Med: 31.91   Max: 5917.68
Current: 400.2

During the past 13 years, Cisco Systems's highest Return-on-Tangible-Equity was 5,917.68%. The lowest was 0.51%. And the median was 31.91%.

XBRU:CIS's Return-on-Tangible-Equity is ranked better than
97.67% of 2365 companies
in the Hardware industry
Industry Median: 5.56 vs XBRU:CIS: 400.20

Cisco Systems Return-on-Tangible-Equity Historical Data

The historical data trend for Cisco Systems's Return-on-Tangible-Equity 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.

* Premium members only.

Cisco Systems Return-on-Tangible-Equity Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 342.45 5,917.68 1,045.51 Negative Tangible Equity 869.86

Cisco Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,151.14 882.42 531.28 346.64 213.24

Competitive Comparison of Cisco Systems's Return-on-Tangible-Equity

For the Communication Equipment subindustry, Cisco Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cisco Systems's Return-on-Tangible-Equity Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Return-on-Tangible-Equity falls into.



Cisco Systems Return-on-Tangible-Equity Calculation

Cisco Systems's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jul. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jul. 2023 )  (A: Jul. 2022 )(A: Jul. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jul. 2023 )  (A: Jul. 2022 )(A: Jul. 2023 )
=12613/( (-1100+4000 )/ 2 )
=12613/1450
=869.86 %

Cisco Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=10536/( (4396+5486)/ 2 )
=10536/4941
=213.24 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jan. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Cisco Systems  (XBRU:CIS) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Cisco Systems Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Cisco Systems (XBRU:CIS) Business Description

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