Cisco Steamrolls Another Year: Fool by Numbers (CSCO)

Cisco Steamrolls Another Year: Fool by Numbers

On August 7, computer networking expert Cisco Systems (Nasdaq: CSCO ) released full-year 2007 earnings for the period ended July 28.

For this fine fiscal year, management credits a truly long-term business plan and unmatched balance across various product lines, geographical regions, and customer demographics.
Management returned 22% year-over-year growth for the 16th quarter in a row.
Cash flow from operations reached record levels, increasing nearly 28% from the previous year.
It's no wonder our Motley Fool CAPS community is all agog over Cisco, giving the stock a four-star grade and a 94% approval rating. Competitors Juniper Networks (Nasdaq: JNPR ) and Alcatel-Lucent (NYSE: ALU ) don't fare quite as well, as they have just three and two stars, respectively. Join the fray with your opinion and analysis today, on Cisco or any other stock.

(Figures in millions, except per-share data)

Income Statement Highlights

	FY 2007	FY 2006	Change
Sales	$34,922	$28,484	22.6%
Net Profit	$7,333	$5,580	31.4%
EPS	$1.17	$0.89	31.5%
Diluted Shares	6,265	6,272	(0.1%)

Get back to basics with the income statement.

Margin Checkup

FY 2007	FY 2006	Change*
64.0%	65.8%	(1.9)
24.7%	24.6%	0.1
21.0%	19.6%	1.4

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	FY 2007	FY 2006	Change
Cash + ST Invest.	$22,266	$17,814	25.0%
Accounts Rec.	$3,989	$3,303	20.8%
Inventory	$1,322	$1,371	(3.6%)

Liabilities	FY 2007	FY 2006	Change
Accounts Payable	$786	$880	(10.7%)
Long-Term Debt	$6,408	$6,332	1.2%

The balance sheet reflects the company's health.

Cash Flow Highlights

	FY 2007	FY 2006	Change
Cash From Ops.	$10,104	$7,899	27.9%
Capital Expenditures	$1,251	$772	62.0%
Free Cash Flow	$8,853	$7,127	24.2%
Owner Earnings	$7,495	$6,101	22.8%

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.

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