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Cisco Systems (XSGO:CSCO) Asset Turnover

: 0.15 (As of Apr. 2023)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Cisco Systems's Revenue for the three months ended in Apr. 2023 was $14,571 Mil. Cisco Systems's Total Assets for the quarter that ended in Apr. 2023 was $96,685 Mil. Therefore, Cisco Systems's Asset Turnover for the quarter that ended in Apr. 2023 was 0.15.

Asset Turnover is linked to ROE % through Du Pont Formula. Cisco Systems's annualized ROE % for the quarter that ended in Apr. 2023 was 30.67%. It is also linked to ROA % through Du Pont Formula. Cisco Systems's annualized ROA % for the quarter that ended in Apr. 2023 was 13.29%.


Cisco Systems Asset Turnover Historical Data

The historical data trend for Cisco Systems's Asset Turnover 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
Asset Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.41 0.50 0.51 0.52 0.54

Cisco Systems Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Asset Turnover 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 0.14 0.14 0.15 0.14 0.15

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution

For the Hardware industry and Technology sector, Cisco Systems's Asset Turnover distribution charts can be found below:

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



Cisco Systems Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Cisco Systems's Asset Turnover for the fiscal year that ended in Jul. 2022 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jul. 2022 )/( (Total Assets (A: Jul. 2021 )+Total Assets (A: Jul. 2022 ))/ count )
=51557/( (97497+94002)/ 2 )
=51557/95749.5
=0.54

Cisco Systems's Asset Turnover for the quarter that ended in Apr. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Apr. 2023 )/( (Total Assets (Q: Jan. 2023 )+Total Assets (Q: Apr. 2023 ))/ count )
=14571/( (95840+97529)/ 2 )
=14571/96684.5
=0.15

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Cisco Systems  (XSGO:CSCO) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Cisco Systems's annulized ROE % for the quarter that ended in Apr. 2023 is

ROE %**(Q: Apr. 2023 )
=Net Income/Total Stockholders Equity
=12848/41884.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12848 / 58284)*(58284 / 96684.5)*(96684.5/ 41884.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=22.04 %*0.6028*2.3084
=ROA %*Equity Multiplier
=13.29 %*2.3084
=30.67 %

Note: The Net Income data used here is four times the quarterly (Apr. 2023) net income data. The Revenue data used here is four times the quarterly (Apr. 2023) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Cisco Systems's annulized ROA % for the quarter that ended in Apr. 2023 is

ROA %(Q: Apr. 2023 )
=Net Income/Total Assets
=12848/96684.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(12848 / 58284)*(58284 / 96684.5)
=Net Margin %*Asset Turnover
=22.04 %*0.6028
=13.29 %

Note: The Net Income data used here is four times the quarterly (Apr. 2023) net income data. The Revenue data used here is four times the quarterly (Apr. 2023) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Cisco Systems Asset Turnover Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Asset Turnover 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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