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Cisco Systems (XSGO:CSCO) Operating Margin %

: 27.68% (As of Apr. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Cisco Systems's Operating Income for the three months ended in Apr. 2023 was $4,033 Mil. Cisco Systems's Revenue for the three months ended in Apr. 2023 was $14,571 Mil. Therefore, Cisco Systems's Operating Margin % for the quarter that ended in Apr. 2023 was 27.68%.

Good Sign:

Cisco Systems Inc operating margin is expanding. Margin expansion is usually a good sign.

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

XSGO:CSCO' s Operating Margin % Range Over the Past 10 Years
Min: 20.71   Med: 26.39   Max: 28.6
Current: 26.48


XSGO:CSCO's Operating Margin % is ranked better than
96.76% of 2408 companies
in the Hardware industry
Industry Median: 4.05 vs XSGO:CSCO: 26.48

Cisco Systems's 5-Year Average Operating Margin % Growth Rate was 1.00% per year.

Cisco Systems's Operating Income for the three months ended in Apr. 2023 was $4,033 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2023 was $14,538 Mil.


Cisco Systems Operating Margin % Historical Data

The historical data trend for Cisco Systems's Operating 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.68 28.02 28.60 27.54 27.11

Cisco Systems Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Operating 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 28.13 26.19 25.95 26.01 27.68

Competitive Comparison

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

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

* The bar in red indicates where Cisco Systems's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



Cisco Systems Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Cisco Systems's Operating Margin % for the fiscal year that ended in Jul. 2022 is calculated as

Operating Margin %=Operating Income (A: Jul. 2022 ) / Revenue (A: Jul. 2022 )
=13975 / 51557
=27.11 %

Cisco Systems's Operating Margin % for the quarter that ended in Apr. 2023 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2023 ) / Revenue (Q: Apr. 2023 )
=4033 / 14571
=27.68 %

* 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.


Cisco Systems  (XSGO:CSCO) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Cisco Systems Operating Margin % Related Terms

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


Cisco Systems (XSGO: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.

Cisco Systems (XSGO:CSCO) Headlines

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