Cisco Systems Profit Margin vs. Return On Asset
| CIS Stock | EUR 56.08 1.14 2.07% |
For Cisco Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cisco Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cisco Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cisco Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cisco Systems over time as well as its relative position and ranking within its peers.
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Cisco Systems Return On Asset vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cisco Systems's current stock value. Our valuation model uses many indicators to compare Cisco Systems value to that of its competitors to determine the firm's financial worth. Cisco Systems is number one stock in profit margin category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.44 of Return On Asset per Profit Margin. The ratio of Profit Margin to Return On Asset for Cisco Systems is roughly 2.29 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cisco Systems' earnings, one of the primary drivers of an investment's value.Cisco Return On Asset vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.21 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0929 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Cisco Return On Asset Comparison
Cisco Systems is currently under evaluation in return on asset category among its peers.
Cisco Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cisco Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cisco Systems will eventually generate negative long term returns. The profitability progress is the general direction of Cisco Systems' change in net profit over the period of time. It can combine multiple indicators of Cisco Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California. CISCO SYSTEMS operates under Communication Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 77500 people.
Cisco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cisco Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cisco Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cisco Systems' important profitability drivers and their relationship over time.
Use Cisco Systems in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cisco Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cisco Systems will appreciate offsetting losses from the drop in the long position's value.Cisco Systems Pair Trading
Cisco Systems Pair Trading Analysis
The ability to find closely correlated positions to Cisco Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cisco Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cisco Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cisco Systems to buy it.
The correlation of Cisco Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cisco Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cisco Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cisco Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cisco Systems position
In addition to having Cisco Systems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Strategy ETFs Thematic Idea Now
Strategy ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Strategy ETFs theme has 1274 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Strategy ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Cisco Stock
When determining whether Cisco Systems offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cisco Systems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cisco Systems Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cisco Systems Stock:Check out Trending Equities. For more detail on how to invest in Cisco Stock please use our How to Invest in Cisco Systems guide.You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Cisco Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cisco Systems at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cisco Systems' income statement, its balance sheet, and the statement of cash flows.