CSCO  Cisco Systems Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Communications Equipment

Market Cap.

157.50B

Potential Competitive Advantage over the past 10 years

CSCO potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$18.75 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Net Income 7.33B 8.05B 6.13B 7.77B 6.49B 8.04B 9.98B 7.85B 8.98B 10.74B
divided by
Revenue 34.92B 39.54B 36.12B 40.04B 43.22B 46.06B 48.61B 47.14B 49.16B 49.25B
Net Profit Margin 21.00% 20.36% 16.98% 19.40% 15.02% 17.46% 20.54% 16.66% 18.27% 21.81%

Strong Pricing Power over the past 10 years

CSCO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$62.18 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Gross Profit 22.34B 25.48B 23.09B 25.64B 26.54B 28.21B 29.44B 27.77B 29.68B 30.96B
divided by
Revenue 34.92B 39.54B 36.12B 40.04B 43.22B 46.06B 48.61B 47.14B 49.16B 49.25B
Gross Margin 63.96% 64.45% 63.94% 64.04% 61.40% 61.24% 60.57% 58.91% 60.38% 62.87%

Low Capital Intensity over the past 10 years

CSCO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that CSCO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

14.65% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Capital Expenditure 1.25B 1.27B 1.01B 1.01B 1.17B 1.13B 1.16B 1.28B 1.23B 1.15B
divided by
Net Income 7.33B 8.05B 6.13B 7.77B 6.49B 8.04B 9.98B 7.85B 8.98B 10.74B
Capital Expenditure Ratio 17.06% 15.75% 16.38% 12.98% 18.09% 14.00% 11.62% 16.24% 13.66% 10.67%