Cisco SystemsXSWX:CSCO 81 Return-on-Tangible-Asset is 23.60% as of Apr. 2026, which is 30% above its 10-year median of 18.09. GuruFocus rates XSWX:CSCO with a GF Score™ of 81/100 and a GF Value™ of CHF55.17. The stock has 9 warning signs investors should review. Among 2,496 Hardware companies, Cisco Systems ranks better than 97.6% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Cisco Systems's annualizedNet Income for the quarter that ended in Apr. 2026 was CHF10,626 Mil. Cisco Systems's average total tangible assets for the quarter that ended in Apr. 2026 was CHF45,036 Mil. Therefore, Cisco Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 23.60%.
The historical rank and industry rank for Cisco Systems's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:CSCO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.13 Med: 18.09 Max: 22.01
Current: 21.93
During the past 13 years, Cisco Systems's highest Return-on-Tangible-Asset was 22.01%. The lowest was 0.13%. And the median was 18.09%.
XSWX:CSCO's Return-on-Tangible-Asset is ranked better than 97.6% of 2496
companies
in the Hardware industry
Industry Median: 2.43
vs XSWX:CSCO: 21.93
Cisco Systems (XSWX:CSCO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cisco Systems Return-on-Tangible-Asset Related Terms
Cisco Systems Return-on-Tangible-Asset Historical Data
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The historical data trend for Cisco Systems's Return-on-Tangible-Asset 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.
XSWX:CSCO vs CIEN, MSI, LITE: Return-on-Tangible-Asset Comparison
For the Communication Equipment subindustry, Cisco Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Return-on-Tangible-Asset falls into.
* 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 23.60% mean?
Cisco Systems (XSWX:CSCO) has a Return-on-Tangible-Asset of 23.60% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cisco Systems and its competitors. This is 30% above median its historical median of 18.09. Over the past decade, Cisco Systems' Return-on-Tangible-Asset has ranged from 0.13 to 22.01. According to the industry distribution chart, Cisco Systems ranks #60 out of 2496 companies in the Hardware industry, placing it in the top 2.4%.
Is Cisco Systems' Return-on-Tangible-Asset too high?
Cisco Systems' current Return-on-Tangible-Asset of 23.60% is 30% above median its 10-year median of 18.09. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 22.01. The Hardware industry median Return-on-Tangible-Asset is 2.43. Cisco Systems' value of 23.60% is 871.2% above this industry median. Based on the distribution chart, Cisco Systems ranks #60 out of 2496 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Return-on-Tangible-Asset compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #60 out of 2496 companies for Return-on-Tangible-Asset. This places Cisco Systems in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.43. Cisco Systems' value of 23.60% is 871.2% above this benchmark. Historically, Cisco Systems' own Return-on-Tangible-Asset has ranged from 0.13 to 22.01 over the past decade. While the company's 10-year median is 18.09 vs. the industry median of 2.43, Cisco Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.43, based on 2,496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Return-on-Tangible-Asset of 23.60% is 871.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Return-on-Tangible-Asset is 23.60%, which is 30% above median its own 10-year median of 18.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Cisco Systems (XSWX:CSCO) has a current Return-on-Tangible-Asset of 23.60%. The stock's GF Value™ is CHF55.17, compared to a current price of CHF90.76 — trading 64.5% above its estimated fair value. The current Return-on-Tangible-Asset is 23.60%, which is 30% above median its 10-year median of 18.09 and 871.2% above the Hardware industry median of 2.43. Cisco Systems' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Return-on-Tangible-Asset is 23.60% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cisco Systems (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF90.76 is trading 64.5% above its estimated GF Value™ of CHF55.17.
Key valuation signals for XSWX:CSCO:
Return-on-Tangible-Asset: 23.60% (30% above median its 10-year median of 18.09)
GF Value™: CHF55.17 vs. price of CHF90.76 (64.5% above fair value)
Industry Position: 871.2% above the Hardware median (#60 of 2496)
No single metric tells the full story. See the XSWX:CSCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 such as 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 employs 80,000 people and sells its products globally.
81GF Score
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