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Cisco Systems (Cisco Systems) Gross Margin % : 65.13% (As of Apr. 2024)


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What is Cisco Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cisco Systems's Gross Profit for the three months ended in Apr. 2024 was $8,273 Mil. Cisco Systems's Revenue for the three months ended in Apr. 2024 was $12,702 Mil. Therefore, Cisco Systems's Gross Margin % for the quarter that ended in Apr. 2024 was 65.13%.


The historical rank and industry rank for Cisco Systems's Gross Margin % or its related term are showing as below:

CSCO' s Gross Margin % Range Over the Past 10 Years
Min: 58.91   Med: 62.8   Max: 64.65
Current: 64.65


During the past 13 years, the highest Gross Margin % of Cisco Systems was 64.65%. The lowest was 58.91%. And the median was 62.80%.

CSCO's Gross Margin % is ranked better than
95.57% of 2437 companies
in the Hardware industry
Industry Median: 24.46 vs CSCO: 64.65

Cisco Systems had a gross margin of 65.13% for the quarter that ended in Apr. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cisco Systems was 0.10% per year.


Cisco Systems Gross Margin % Historical Data

The historical data trend for Cisco Systems's Gross Margin % 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 Gross Margin % Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.94 64.26 64.02 62.55 62.73

Cisco Systems Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Gross Margin % 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 63.36 64.12 65.16 64.24 65.13

Competitive Comparison of Cisco Systems's Gross Margin %

For the Communication Equipment subindustry, Cisco Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Gross Margin % falls into.



Cisco Systems Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Cisco Systems's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=35753 / 56998
=(Revenue - Cost of Goods Sold) / Revenue
=(56998 - 21245) / 56998
=62.73 %

Cisco Systems's Gross Margin for the quarter that ended in Apr. 2024 is calculated as


Gross Margin % (Q: Apr. 2024 )=Gross Profit (Q: Apr. 2024 ) / Revenue (Q: Apr. 2024 )
=8273 / 12702
=(Revenue - Cost of Goods Sold) / Revenue
=(12702 - 4429) / 12702
=65.13 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Cisco Systems  (NAS:CSCO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Cisco Systems had a gross margin of 65.13% for the quarter that ended in Apr. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Cisco Systems Gross Margin % Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cisco Systems (Cisco Systems) Business Description

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.
Executives
Richard Scott Herren officer: EVP and CFO 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Maria Victoria Wong officer: SVP & Chief Acctg Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Deborah L Stahlkopf officer: EVP and Chief Legal Officer 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
Mark Garrett director 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
Maria Martinez officer: EVP, Chief Customer Exp Offcr THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Charles Robbins officer: SVP, Worldwide Sales 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Daniel H Schulman director C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Roderick C Mcgeary director 1421 MCCRTHY BLVD, MILPITAS CA 95035
Prat Bhatt officer: VP, Corporate Controller & PAO 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Kristina M Johnson director 19 HEATH PL, DURHAM NC 27705
Sarah Rae Murphy director C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Geraldine Elliott officer: EVP, Chief Sales & Mktg Offcr 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
M Michele Burns director C/O MARSH &MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036-2774
Mark D Chandler officer: SVP, LglSrvs, GenCnsl & Secty 170 W TASMAN DRIVE, SAN JOSE CA 95134

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