CSCONEUTRAL

Return on Equity (ROE)

25.2%

Higher than 50% of TECHNOLOGY sector peers

Updated 417h ago

Sector Performance

50th percentile

CSCO

25.2%

Sector Median

25.2%

Sector Avg

24.5%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company turns shareholders’ equity into profit – a 25.2% ROE means CSCO generates about $0.25 of net income for every dollar of equity.

This matches the TECHNOLOGY sector median of 25.2% exactly, landing CSCO at the 0th percentile among its sector peers, meaning no peer has a lower ROE than this level. The year-over-year change is not available, but quarter-over-quarter ROE rose by +16.1%, climbing from 21.7% in the prior period. While the absolute ROE is on par with the sector and the recent quarterly improvement suggests momentum, the lack of a longer trend makes it hard to confirm durability. A high ROE at the sector median reduces downside risk, but the narrow data history limits the opportunity to bet on a sustained advantage. This metric does not directly contradict the NEUTRAL verdict, as the current level is adequate but unexceptional relative to peers, and the positive quarterly change alone does not justify upgrading or downgrading the stock.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CSCO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CSCO's Return on Equity (ROE) compare to its sector?

CSCO's Return on Equity (ROE) of 25.2% compares to a TECHNOLOGY sector median of 25.2%, placing it in the 50th percentile.

Who are CSCO's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: TXN (32.3%), NOW (16.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.