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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?

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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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