These are the current ratios for Cisco Inc. for the 2018 and 2017 years. Based on these numbers, how well or poorly is the company doing?

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Chapter15: Capital Investment Analysis
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These are the current ratios for Cisco Inc. for the 2018 and 2017 years.

Based on these numbers, how well or poorly is the company doing?

Rounded to: Millions
Current Year:
2018
Prior Year:
2017
Profit margin:
Net Income (Loss)
$110.0
$9,609.0
0.22%
20.02%
%3D
Net Sales
$49,330.0
$48,005.0
Gross Profit Percentage:
Gross Profit
$30,606.0
$30,224.0
62.04%
62.96%
%3D
Net Sales
$49,330.0
$48,005.0
Asset turnover:
Net Sales
$49,330.0
$48,005.0
Average Total Assets
$61,837.0
$83.703.0
$83,703.0
$78,719.0
2
+
+
$49,330.0
$48,005.0
0.68 times
0.59 times
$72,770.0
$81,211.0
Return on assets (ROA):
Net Income (Loss)
$110.0
$9,609.0
= 0.15%
= 11.83%
%3D
Average Total Assets
$72,770.0
$81,211.0
Return on equity (ROE):
Net Income (Loss)
$110.0
$9,609.0
Average Stockholders' Equity
$43,204.0
$66,137.0
$66,137.0
$63,586.0
+
$110.0
$9,609.0
= 0.20%
14.81%
$54,670.5
$64,861.5
Transcribed Image Text:Rounded to: Millions Current Year: 2018 Prior Year: 2017 Profit margin: Net Income (Loss) $110.0 $9,609.0 0.22% 20.02% %3D Net Sales $49,330.0 $48,005.0 Gross Profit Percentage: Gross Profit $30,606.0 $30,224.0 62.04% 62.96% %3D Net Sales $49,330.0 $48,005.0 Asset turnover: Net Sales $49,330.0 $48,005.0 Average Total Assets $61,837.0 $83.703.0 $83,703.0 $78,719.0 2 + + $49,330.0 $48,005.0 0.68 times 0.59 times $72,770.0 $81,211.0 Return on assets (ROA): Net Income (Loss) $110.0 $9,609.0 = 0.15% = 11.83% %3D Average Total Assets $72,770.0 $81,211.0 Return on equity (ROE): Net Income (Loss) $110.0 $9,609.0 Average Stockholders' Equity $43,204.0 $66,137.0 $66,137.0 $63,586.0 + $110.0 $9,609.0 = 0.20% 14.81% $54,670.5 $64,861.5
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