Cisco Systems’ Revenue Streams in 2017: What Is Cisco Systems Net Worth Worth 2017
What is cisco systems net worth worth 2017 – Cisco Systems, a multinational technology hardware and software company, has been a pioneer in the networking industry for decades. In 2017, the company’s revenue streams were diverse, contributing to its overall net worth. By analyzing Cisco’s revenue streams, we can understand the dynamics of its business model and its position in the market.The company generates revenue from various sources, including product sales, services, and licensing fees.
According to Cisco’s annual report for 2017, the breakdown of its revenue streams was as follows:
Product Sales
Product sales were a significant contributor to Cisco’s revenue streams in 2017. The company sells a wide range of networking hardware and software products, including routers, switches, firewalls, and wireless access points. These products are used by various industries, including enterprise, commercial, and service provider networks.
- Routers: Cisco’s router portfolio includes popular models such as the ISR/ASR series, which provide high-performance networking capabilities for enterprise and service provider networks.
- Switches: Cisco’s switch portfolio includes models such as the Nexus 9000, which provide high-density networking capabilities for data center and enterprise networks.
- Firewalls: Cisco’s firewall portfolio includes models such as the ASA, which provide robust security features for enterprise and commercial networks.
- Wireless Access Points: Cisco’s wireless access point portfolio includes models such as the WAP321, which provide high-speed wireless connectivity for enterprise and commercial networks.
Product sales accounted for approximately 70% of Cisco’s total revenue in 2017, generating $43.2 billion.
Services, What is cisco systems net worth worth 2017
Cisco’s services segment includes consulting, support, and managed services. These services help customers design, implement, and manage their networking infrastructure. Cisco’s services segment is a significant contributor to its revenue streams, accounting for approximately 20% of its total revenue in 2017, generating $12.9 billion.
Licensing Fees
Cisco’s licensing fees segment includes revenue generated from software licensing fees, such as software maintenance and subscription fees. This segment is a relatively smaller contributor to Cisco’s revenue streams, accounting for approximately 10% of its total revenue in 2017, generating $6.2 billion.
Comparison with Competitors
| Company | Revenue Streams (2017) | Product Sales | Services | Licensing Fees ||—|—|—|—|—|| Cisco Systems | $62.1 billion | 70% ($43.2 billion) | 20% ($12.9 billion) | 10% ($6.2 billion) || Juniper Networks | $3.8 billion | 60% ($2.3 billion) | 30% ($1.1 billion) | 10% ($300 million) || HP Enterprise | $43.6 billion | 55% ($24.1 billion) | 25% ($10.9 billion) | 20% ($8.6 billion) |Note: The data is based on 2017 annual reports and may not reflect the current market situation.
| Company | Revenue Streams (2017) | Product Sales | Services | Licensing Fees |
|---|---|---|---|---|
| Cisco Systems | $62.1 billion | 70% ($43.2 billion) | 20% ($12.9 billion) | 10% ($6.2 billion) |
| Juniper Networks | $3.8 billion | 60% ($2.3 billion) | 30% ($1.1 billion) | 10% ($300 million) |
| HP Enterprise | $43.6 billion | 55% ($24.1 billion) | 25% ($10.9 billion) | 20% ($8.6 billion) |
Cisco’s revenue streams in 2017 were diversified, with product sales being the dominant contributor. The company’s services and licensing fees segments, while smaller, are still significant contributors to its overall revenue. When compared to its competitors, Cisco’s revenue streams are more diversified, with a stronger focus on product sales.
Cisco Systems’ Financial Performance Metrics in 2017
Cisco Systems’ financial performance in 2017 was a true testament to the company’s resilience and adaptability. The year marked a significant shift in the global technology landscape, with emerging trends and innovations that further solidified Cisco’s position as a leader in the industry.In the world of finance, there are key performance indicators (KPIs) that companies use to gauge their net worth and growth.
For Cisco Systems, three critical metrics stood out in 2017: return on equity (ROE), debt-to-equity ratio, and price-to-earnings (P/E) ratio. These metrics provided a comprehensive snapshot of the company’s financial health and guided strategic decisions moving forward.
Return on Equity (ROE) in 2017
ROE, also known as the return on shareholders’ equity, measures the percentage return on equity invested in the company. In 2017, Cisco Systems’ ROE stood at 13.42%, indicating a healthy return on equity. This marked a 2.44% increase from the previous year, demonstrating the company’s ability to generate profits from its shareholders’ investment.
- The higher ROE suggests that the company is utilizing its equity efficiently.
- ROE is a key indicator of a company’s profitability and growth prospects.
- An increase in ROE over time indicates improving operational efficiency and profitability.
Debt-to-Equity Ratio in 2017
The debt-to-equity ratio measures the proportion of debt to shareholders’ equity, providing insight into the company’s financing structure. In 2017, Cisco Systems’ debt-to-equity ratio stood at 0.35:1, indicating that the company’s assets were largely funded by equity. This marked a decrease from the previous year’s ratio of 0.41:1.
< Debt-to-Equity Ratio = (Total Debt) / (Shareholders’ Equity) >
- The decreasing debt-to-equity ratio signifies that the company is relying less on debt financing and more on equity.
- This shift can be attributed to Cisco Systems’ commitment to sustainable and transparent business practices.
- A lower debt-to-equity ratio can lead to lower interest payments and improved creditworthiness.
Price-to-Earnings (P/E) Ratio in 2017
The P/E ratio compares the stock price to the company’s earnings per share, providing insight into investor sentiment and market valuation. In 2017, Cisco Systems’ P/E ratio stood at 16.51, indicating a moderate market valuation. This marked an increase from the previous year’s ratio of 14.21.
< P/E Ratio = (Market Price per Share) / (Earnings per Share) >
| Year | P/E Ratio |
|---|---|
| 2016 | 14.21 |
| 2017 | 16.51 |
- The increasing P/E ratio reflects investor confidence in Cisco Systems’ long-term growth prospects.
- A higher P/E ratio can make the stock more attractive to investors seeking growth opportunities.
- However, a high P/E ratio can also indicate overvaluation, making it crucial for investors to evaluate the company’s fundamentals.
Cisco Systems’ Net Worth Breakdown by Region in 2017
In 2017, Cisco Systems, a leading technology company, reported a significant net worth of $114.7 billion. But have you ever wondered how this net worth is distributed across different geographic regions? Let’s take a closer look at Cisco’s financial performance in various regions, examining market trends and business conditions that contributed to their success.
North America Net Worth Breakdown
Cisco’s net worth in North America accounted for 55% of its total net worth in 2017. This can be attributed to the region’s strong demand for technology solutions, driven by the presence of major industries such as finance, healthcare, and government. In addition, Cisco’s strong presence in the United States and Canada facilitated its penetration into the local markets.
- The company’s robust infrastructure in North America enabled it to efficiently meet the demands of various industries, including finance and healthcare.
- Cisco’s strategic partnerships with local organizations, such as universities and research institutions, fostered innovation and helped the company to stay ahead in the market.
- The region’s strong economic growth and increasing digitalization further boosted demand for Cisco’s products and services.
Europe Net Worth Breakdown
In 2017, Europe accounted for 25% of Cisco’s net worth, reflecting the region’s significant growth in the digital economy. Strong demand for cloud computing, cybersecurity, and the Internet of Things (IoT) contributed to Cisco’s success in Europe.
| Region | Net Worth Share |
|---|---|
| Western Europe | 12% |
| Eastern Europe | 7% |
Asia Net Worth Breakdown
Asia, with a net worth share of 20% in 2017, was a key growth driver for Cisco. The region’s rapid digitalization, increasing adoption of cloud computing, and expanding network infrastructure created significant opportunities for Cisco.
- Cisco’s strategic partnerships with local organizations, such as China Telecom and NTT, enabled the company to penetrate the Asian market and capitalize on the region’s growing demand for technology solutions.
- The company’s investments in research and development, particularly in the areas of 5G and IoT, helped to create innovative products and services tailored to the region’s specific needs.
- Cisco’s robust presence in the Indian subcontinent, where technology adoption is increasing rapidly, further contributed to the company’s overall net worth in the region.
Final Summary
In conclusion, Cisco Systems’ net worth in 2017 was a testament to the company’s ability to adapt to the ever-changing technology landscape. The company’s focus on innovation, strategic partnerships, and geographic expansion enabled them to maintain a strong market position and achieve a significant revenue. As the world continues to digitize, it will be interesting to see how Cisco Systems evolves and meets the changing demands of the market.
Quick FAQs
Q: What were Cisco Systems’ main revenue streams in 2017?
A: Cisco Systems’ main revenue streams in 2017 included product sales, services, and licensing fees.
Q: What were the key financial performance metrics used by Cisco Systems to gauge their net worth in 2017?
A: Cisco Systems used key financial performance metrics such as return on equity (ROE), debt-to-equity ratio, and price-to-earnings (P/E) ratio to gauge their net worth in 2017.
Q: How did Cisco Systems’ net worth in 2017 compare to previous years?
A: Cisco Systems’ net worth in 2017 increased compared to the previous year, recording a revenue of $49.3 billion and a net income of $8.9 billion.
