Cisco Systems Company Leadership

Cisco Systems' latest congressional trading

Cisco Systems Management Team Effectiveness

The company has return on total asset (ROA) of 0.0628 % which means that it generated a profit of $0.0628 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2076 %, meaning that it created $0.2076 on every $100 dollars invested by stockholders. Cisco Systems' management efficiency ratios could be used to measure how well Cisco Systems manages its routine affairs as well as how well it operates its assets and liabilities. As of the 11th of December 2024, Return On Tangible Assets is likely to grow to 0.19. Also, Return On Capital Employed is likely to grow to 0.18. At this time, Cisco Systems' Return On Tangible Assets are very stable compared to the past year. As of the 11th of December 2024, Return On Assets is likely to grow to 0.11, while Total Current Assets are likely to drop about 32.3 B. As of the 11th of December 2024, Common Stock Shares Outstanding is likely to grow to about 4.3 B, while Net Income Applicable To Common Shares is likely to drop about 8.8 B.

Cisco Systems Workforce Comparison

Cisco Systems Profit Margins

The company has Profit Margin (PM) of 0.18 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.17 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.17.

Cisco Systems Insider Trading History

Cisco Systems Notable Stakeholders

The success or failure of an entity such as Cisco Systems often depends on how effective the management is. Cisco Systems management team is responsible for propelling the future growth in the right direction and administering and controlling the business activities and accounting for the results. Ineffective management usually contributes to failure in the company's future performance for all stakeholders equally, but most importantly, for investors. So it is important to measure the effectiveness of Cisco management before purchasing its stock. In many ways, it's all about finding the answer to one important question - Are they doing the right thing right now? How would we assess whether the Cisco management is utilizing all available resources in the best possible way? Also, how well is the company doing relative to others in its sector and the market as a whole? The answer can be found by analyzing a few important fundamental indicators such as return on assets and return on equity.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cisco Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Cisco Stock, please use our How to Invest in Cisco Systems guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cisco Systems. If investors know Cisco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cisco Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Cisco Systems is measured differently than its book value, which is the value of Cisco that is recorded on the company's balance sheet. Investors also form their own opinion of Cisco Systems' value that differs from its market value or its book value, called intrinsic value, which is Cisco Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cisco Systems' market value can be influenced by many factors that don't directly affect Cisco Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Cisco Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cisco Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cisco Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.