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Cisco Systems (NAS:CSCO) Gross Margin %

: 62.00% (As of Jan. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Cisco Systems's Gross Profit for the three months ended in Jan. 2023 was $8,427 Mil. Cisco Systems's Revenue for the three months ended in Jan. 2023 was $13,592 Mil. Therefore, Cisco Systems's Gross Margin % for the quarter that ended in Jan. 2023 was 62.00%.


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: 62.71   Max: 64.26
Current: 61.92


During the past 13 years, the highest Gross Margin % of Cisco Systems was 64.26%. The lowest was 58.91%. And the median was 62.71%.

CSCO's Gross Margin % is ranked better than
94.35% of 2373 companies
in the Hardware industry
Industry Median: 24.19 vs CSCO: 61.92

Cisco Systems had a gross margin of 62.00% for the quarter that ended in Jan. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cisco Systems was 0.20% 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 Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.04 62.94 64.26 64.02 62.55

Cisco Systems Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 63.28 63.27 61.25 61.22 62.00

Competitive Comparison

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 Gross Margin % Distribution

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 in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.



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. 2022 is calculated as

Gross Margin % (A: Jul. 2022 )=Gross Profit (A: Jul. 2022 ) / Revenue (A: Jul. 2022 )
=32248 / 51557
=(Revenue - Cost of Goods Sold) / Revenue
=(51557 - 19309) / 51557
=62.55 %

Cisco Systems's Gross Margin for the quarter that ended in Jan. 2023 is calculated as


Gross Margin % (Q: Jan. 2023 )=Gross Profit (Q: Jan. 2023 ) / Revenue (Q: Jan. 2023 )
=8427 / 13592
=(Revenue - Cost of Goods Sold) / Revenue
=(13592 - 5165) / 13592
=62.00 %

* 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 62.00% for the quarter that ended in Jan. 2023 => 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 (NAS:CSCO) Business Description

Cisco Systems logo
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
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

Cisco Systems (NAS:CSCO) Headlines

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