Cisco Systems Cisco System was incorporated as information technology organization which has become a leader in internet and networking industry. Cisco System was incorporated during the period of 1984 from the scientist of a university of Stanford, whose prime objective is to find an easier way to link various types of a computer system by developing a network protocol. During the period of 1986, the first system was shipped by Cisco and in current period it has transformed itself into a multi-national giant, having around seventy-two thousand employees and operating in more than one hundred and fifteen countries. In the current era, Cisco System is perceived as a foundation of networking system for small medium organization, internet service …show more content…
The components of income statement which has been analyzed are as follows: Revenue Revenue which is recorded in income statement is the unrealized profit which has been generated by either making credit sale or cash sale. The revenue of Cisco System has been increased during the period of 2013-2015. During the period of 2015, the revenue of Cisco System has been increased to four point nine million dollars in 2015 in contrast with its base year of four point eight million dollars in 2013. This increase in revenue determines the rise of one point one four percent during the period of 2013-2015. Gross Profit Gross Profit which is recorded in income statement is the unrealized profit which has been computed by deducting the cost of goods sold from revenue portion. The Gross Profit of Cisco System has been increased during the period of 2013-2015. During the period of 2015, the Gross Profit of Cisco System has been increased to three point zero million dollars in 2015 in contrast with its base year of two point nine million dollars in 2013. This increase in revenue determines the rise of zero point eight two percent during the period of 2013-2015. Such increase in Gross Profit determines the Cisco ability to control its cost of goods sold by decreasing the cost being arising due to raw materials and …show more content…
The Net Income of Cisco System has been decreased significantly during the period of 2013-2015. During the period of 2015, the Net Income of Cisco System has been decreased to eight point nine million dollars in 2015 in contrast with its base year of nine point nine million dollars in 2013. This decrease in Net Income determines the reduction of ten point four percent during the period of 2013-2015. Such a reduction in Net Income determines the Cisco inability to control its operation expense which ultimately led to reduction of its profitability. Balance Sheet The balance sheet is mainly comprised of three components, i.e., Asset, Liabilities, and Equity. The asset and liability component of a balance sheet is further divided into current and noncurrent. The balance sheet analysis of Cisco Systems covers the period of 2013-2015.
Balance sheet lists assets, liabilities and owner’s equity. The assets listed on the balance sheet are acquired either by debt (liabilities) or equity. “Companies that use more debt than equity to finance assets have a high leverage ratio and an aggressive capital structure. A company that pays for assets with more equity than debt has a low leverage ratio and a conservative capital structure. That said, a high leverage ratio and/or an aggressive capital structure can also lead
• An analysis of Caterpillar’s 2015 Income Statement revealed a 15.3% decrease in sales on machinery, energy, and transportation between 2014 and 2015. While the company experienced a nearly negligible change (-1.05%) in operational revenues from 2013 to 2014, they experienced a very severe decline between 2014 and 2015. Operational revenues dropped from $52,142 million to $44,147 million, showing a deterioration from previous years.
Cisco Designs, manufactures, and sells Internet Protocol (IP) - based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The company provides products for transporting data, voice within buildings, across campuses and globally. The products are utilized at enterprise businesses, public institutions, telecommunications companies and other service providers, commercial businesses, and personal residences. Cisco conducts its business globally and manages its business geographically. Its business is divided into the following three geographic segments: The Americans; Europe, M...
...ense has decreased 82.8% from 2000 to 2004. All the above are contributing factors in Applebee’s achieving higher earnings, a 75% increase in net earnings from 2000 to 2004. Average shares has fall due to consistent share repurchasing programs by Applebee’s. Overall, the common-size analysis of the income statement are relatively consistent over the five years of study. Cost of goods has stayed consistent between 74%-75%, the Depreciation and amortization is between 9%-11%, income from Continue operations and Net Income are also both between 9%-10% in common-size analysis for income Statement. No unusual flutuations has been discovered.
The Coca Cola Company has been increasing its income value. “Coca-Cola reported earnings and revenue that topped analysts' expectations for the second quarter” (Coca-Cola Co). Every eight years their profit per share increase 50 cent. From 2004-2012 it has increased 50 cent which now it’s been increasing 50 cent per share in 2-3 years. They’re revenue is $9.702 billion, compared with a forecast of $9.652 billion. Coca Cola profit has been
This chart shows the net revenues and net earnings for the years of 2013-2009. As you observe the net revenues have been consistent in the 18,000 for at least 3 years in a row. This is a good trend for the Kraft Food Group. The trend for the net earnings is sporadic. The net earnings is also called the bottom line. This shows the amount of money that is left over after paying all of the expenses. Kraft Food Group needs to cut down on its expenses.
Cisco Systems, Inc. is a leader in networking for the internet, they develop hardware, software, and services to help create internet solutions that make internet networks possible. Cisco was founded in 1984 by a small group of computer scientists from Stanford University. They are a worldwide company with headquarters in: San Jose, California, Amsterdam Netherlands, and Singapore. Currently, they employ approximately 74,000 people throughout the world. Cisco operates on a set of values which include: change the world, intensely focus on customers, make innovation happen, win together, respect and care for each other, and always do the right thing. They show these values through global involvement in education, community, and philanthropic efforts. (Cisco, 2004)
Every company has some kind of Revenue and they all have costs that are associated with running the company. It is also true that if a company wants to increase their Revenue, their costs will increase too. It is every company’s goal to maximize revenue and either through Production or Services, and minimize cost. These things are easy to figure out, but actually identifying the production and figuring out how it will increase or decrease with change is very difficult.
In Microsoft’s 2004 fiscal year, a 33% increase in net income resulted in a 1% increase in stock price. In the 2005 fiscal year, a 2% gain in net income resulted in a 4% decrease in stock price (Microsoft Inc 2006). As seen, an increase in net income does not automatically lead to an increase in stock price. For growth companies such as Microsoft, stock price is primarily driven by the growth of earnings (25 April 2007).
Therefore, the amount of profit obtained is somewhat arbitrary. However, cash flow is an objective measure of cash and it is not subjected to a personal criterion. Net cash flow is the difference between cash inflows and cash outflows; that is, the cash received into the business and cash paid out of the business (Fernández, 2006). Whereas, net profit is the figure obtained after expenses or cost of resources used by the business is deducted from revenues generated from the business operations activities. Nonetheless, the figure for revenue and cash are not entirely cash, some of the items may be sold on credit and some of the expenses are not paid up
In this two-year period, gross sales had a 17% increase while COGS increased by about 21%. If this rate keeps up, Guna can be sure to have a negative net profit in the coming years. So, despite their growth in sales from 2010 to 2011, Guna’s net profit decreased by an almost 30%. That is a significant drop relative to their increase in sales. By looking at the net profit as a percentage of sales, in 2011 the net profit was only 3% of sales as compared to about 6% in 2010. This should be a big concern and a cause for
In 2011, Next PLC did the excellent job on performance, it has record on profit, sales, earning per share and dividends. Although there was challenging environment face retailer industry during recent years.( NEXT PLC, 2011 page 1) According to the data from the Next Annual Report and Account January 2011(NEXT PLC, 2011 page43) , we can calculate that profitability ratio between 2010 and 2011, Gross profit margin: 29.26%, 29.21%, Operating profit margin: 15.55%, 16.64%, Net profit margin: 10.69%, 11.61%. As result showed, except Gross profit margin, Operating profit and Net profit margin increased by 1.09% and 0.92%. There was reasons why gross profit margin had downward figure, the Next PLC had suffered a ...
Revenue income is money brought into the business through the business activities so this is money generated through things such as the sale of goods or services. Revenue income is simply the money a company receives through its trading activities. Revenue income is calculated by multiplying the price that the goods of the company sell at by the number of units sold by the company. An example of revenue income is for example a company like Sony selling their products such as headphones...
Balance sheet-: Balance sheet is a statement at the book value of all of the assets and liabilities of a business or other organization present a particular date such as the end of the financial year. It is known as a balance sheet because it reflection accounting identity the components of the balance sheets. The balance sheet must follow the following formula:
In classified balance sheet categories of assets are: current assets, investments, fixed assets, intangible assets, etc.