Cisco Systems, Inc.

Equity Report Analyst: Misbah Maaheen Razmi

Ticker: CSCO Forecast Horizon: 12 Months Target forecasted price: 21.7

Price: Date: Recommendation: Hold

1. Highlights

Net sales of over $43 billion, increase in the sales by 8% compared to last year. Increase in the service revenue by 14%, accounting to 20% of the total revenue. Balanced sales across all the geographic regions. Improvement in the line of products. Growth in the new products revenue by 14%. Well positioned for the future.

2. Summary of Analysis
Market capitalization: 106.64B Cash: $46.74B based data reported Jan 28, 2012. Last 12 months revenue: $44.84B Trailing Twelve Months, Jan 28,2012. Operating Cash Flow: 11.24B on Jan 28, 2012 Free cash flow: $1.28B on Jan 28, 2012 Forward Annual Dividend Rate4: 0.32

3. Justification for Hold Recommendation

CISCO's earnings were fluctating last. year. The earnings did not look good in the fourth quarter. The revenue rose, however the stock price fell. Also the profit margin fell, sales reduced owing to the tough competition from HP and Juniper. However CISCO started paying dividends last year. It has invested huge amounts of money for R and D, it is launching newer innovative products. CISCO is working on integrating platforms. CISCO is also focussing on its core processes. CISCO is taking into consideration cloud and virtualization. The financial ratios still look good and I feel that CISCO will be able to continue its market dominance. Hence I will recommend to hold CISCO stock.

4. Qualitative Analysis
a) Company Profile CISCO manufactures the Internet Protocol based networking devices. It provides devices for routing data for voice, direct data and video traffic. It also manufactures set top boxes, optical networking equipments, IP telephony equipment, Internet conferencing systems, security systems, etc. The products are sold to large enterprises, telecommunications services providers. Also, it sells networking devices to small business and home end users. More than half of the sales of Cisco are in North America. The five segments of CISCO are Asia Pacific, Japan, Emerging Markets, United States and Canada. The categories of product offerings from CISCO are: 1. Core technologies 2. Routing and 3. Advanced Technologies.

b) Industry Overview Virtualization and cloud computing is changing the technology industry. Companies are investing more amount of money for research and development to have a competitive advantage. Interesting acquisitions are also changing a lot of things currently in the technology industry. With newer technologies, there is integration of various services for more ease. There is evolution of the network architectures in order to accommodate the increasing number of users, network applications, etc. The competition has got very fierce and every company needs to take extra steps to have a competitive advantage. c) SWOT analysis Strengths

Creation of a trusted brand in networking and a persistent market leadership. Strong relationships with customer and partners. Large customer base Reorganized and more efficient sales, engineering, services, and operations organization.

Weaknesses

The sales to service providers are weak owing to the fluctuating market. Impact of the global economic slowdown. Weak sales of networked home products

Opportunities

Introduction of next generation products which are superior price-wise and technology wise

Careful consideration of market transition, eg. IPV4 to IPV6 transition, intelligent networks, virtualization. Convergence of networked mobility technologies, video and collaboration Increased revenues in emerging markets

Threats: Rapidly changing and converging technologies, migration to more advantageous solutions. High competition from other companies producing the same technologies. New emerging companies providing the same technologies. Competitor companies with greater resources.

d) Porters 5 competitive forces Buyer power - Medium Customers have a variety of choices; they can buy the networking devices from a large number of other companies. In this case, buyer power is high. If one customer is lost, it does not make a big difference to CISCO as it has a very large base of customers. Hence the buyer power is low. Thus overall, the buyer power is medium.

Rivalry - High CISCO has many competitors who are not far behind from CISCO with regards to the performance parameters. Some of the rivals of CISCO are: Alcatel-Lucent; Aruba Networks, Inc.; Avaya Inc.; Dell Inc.; D-Link Corporation; Hewlett-Packard Company; International Business Machines Corporation; Juniper Networks, Inc.; Motorola Solutions, Inc.; NETGEAR, Inc. Threats from Substitutes = High Many newer products are being developed and adapted in the market. Hence the threat of substitutes is high. Newer technologies are replacing older technologies, hence CISCO needs to be abreast with all these technologies and not fall behind. CISCO needs to be innovative always. Supplier Power = Low CISCO employs an outsourced manufacturing strategy, and the contracts are not locked in. Also CISCOs products include software from third parties, and the process of obtaining these licenses is relatively simple. e) Management Carol A. Bartz, Former Chief Executive Officer, Yahoo! Inc.

M. Michele Burns, Former Chairman and Chief Executive Officer, Mercer LLC Michael D. Capellas,Chairman, VCE Company, LLC Larry R. Carter, Former SVP, Office of the Chairman and CEO, Cisco Systems, Inc. John T. Chambers, Chairman and Chief Executive Officer, Cisco Systems, Inc. Brian L. Halla ,Former Chairman and Chief Executive Officer, National Semiconductor Corporation John L. Hennessy, Ph.D. ,President, Stanford University Richard M. Kovacevich, Retired Chairman and Chief Executive Officer, Wells Fargo & Company Roderick C. McGeary , Chairman, Tegile Systems, Inc. Arun Sarin, KBE , Former Chief Executive Officer, Vodafone Group Plc ,Senior Advisor, Kohlberg Kravis Roberts & Co. Steven M. West Founder and Partner, Emerging Company Partners LLC Jerry Yang Co-Founder and Former Chief Yahoo!, Yahoo! Inc.

f) Owners Chambers john t Moore gary b Lloyd robert wayne Calderoni frank Chandler mark d g) Breakdown % of Shares Held by All Insider and 5% Owners % of Shares Held by Institutional & Mutual Fund Owners: % of Float Held by Institutional & Mutual Fund Owners: Number of Institutions Holding Shares: h) News Cisco Posts Better-Than-Expected Profit Cisco Restructures Consumer Business New Cisco Unified Computing System Innovations Help Customers Build Clouds, Deploy Business Applications Faster Cisco Transforms Digital Signs into Highly Interactive Experiences, Creating New Ways to Increase Engagement Barcelona and Cisco Announce Strategic Initiatives to Transform the City into a Global Urban Reference Model 0% 68% 68% 1436 2,393,595 868,618 507,232 502,788 482,201 Feb 13, 2012 Feb 13, 2012 Nov 21, 2011 Feb 19, 2012 Sep 21, 2011

i) Summary of technical analysis and charts f a d

The char above show the 52-we price his rt ws eek story. The lowe price in th past 52 weeks was on August 10, 2011, with $13.73. est he w n , The high price in the past 52 weeks was on February 8 2012, with $20.43 hest t w 8, h The stock is currently trading at $19.62. k y $

5. Financial Statements Analysis F S s s

a. Short Term financing ra atios Current Ratio C o Curren Ratio = To Current Assets/ nt otal Total Current Liab C bilities Total Current Ass sets 57231 Total Cur rrent Liabilities 17506 3.27 Curre Ratio 3 ent Quick Ratio = Tot Quick As tal ssets/ Total Current Liab C bilities Quick Assets = To Current Assets otal Invent tory 57231 17506 1486 3.18 Quick Ratio 3

Quick Ratio Q

Total Quick Assets T A Total Current Liabilities T t In nventory Cash Ratio C

Cash 44,585 C 5

Current liabilities 17506 Cash Ratio 2.54 The total current assets are divided by its total current liabilities to obtain the current ratio. This ratio is a company's test of liquidity. It expresses how well a company's current assets are suitable to meet its current obligation. CISCOs current ratio is 3.27 which is high a is good news. It means that CISCO has high liquidity. For quick ratio, total quick assets are divided by total current liabilities. We can further analyze a companys ability to meet its obligation using the quick ratio. A company having a higher quick ratio can meet its obligations. CISCOs quick ratio is 3.18, which is quite high, and that means CISCO will be able to meet all of its obligations efficiently. Cash ratio gives a measure of the most liquid assets of a company. A high cash ratio is obviously good and CISCO has a good cash ratio. b. Long term solvency ratios Debt-equity ratio Total Liabilities Owners Equity or Net Worth Equity Multiplier Debt to Equity Ratio = Total Liabilities / Owners Equity or Net Worth 39,836 47,259 Debt to Equity Ratio 0.84 Equity Multiplier = Total Assets/Stockholders equity Total Assets 87095 Stockholders equity 47259 Equity Multiplier 1.84 Earnings before interest and taxes/ net interest expense 8752 13.0 million Times Interest Expense 14.33 Earnings Before Interest and Taxes + Non-Cash Expenses(depreciation and provision for doubtful debts) /Interest Expense 7,674 2,486 628

Times Interest Earned ratio EBIT(Operating Income) Net interest expense Cash Coverage ratio

Earnings before taxes Non-cash expenses Interest Expense

Cash Coverage Ratio 16.19 A high debt to equity ratio indicates that the company does not have enough cash to meet its obligations. CISCOs debt to equity is low, which is good. Times interest earned ratio describes how well a company can honor its debt payments. CISCOs times interest earned ratio is high, which means CISCO can honor its debt payments. c. Asset Utilization Ratios Inventory Turnover Inventory turnover = Cost of goods 9.6 sold / inventory Cost of goods sold 13,647 Inventory 1,486 Inventory turnover 9.18 Days sales in inventory = Inventory / Cost of Sales * 100 Inventory 1486 Cost of sales 13647 Days sales in inventory 10.89

Days sales in inventory

Receivables turnover Net credit sales 43,218 Average accounts receivable 4,698 Receivables turnover 10.87 Day sales in receivables (Accounts receivable/total credit sales )* Number of days Accounts receivable 4,698 total credit sales 43,218 number of days 365 Days sales in receivables 3968 Asset Turnover = Revenue / Assets Revenue Assets Capital intensity Total assets Total revenue 43,218 87,095 Total asset turnover 0.4962 Total assets / sales revenue 87,095 43,218 Capital intensity 2.0152

Total asset turnover

Inventory turnover ratio indicates how many times a companys inventory is sold and replaced over a period of time. CISCOs inventory turnover ratio is 9.6. This indicates that CISCO has good sales. When compared with the industrys average, CISCOs inventory turnover ratio is high which is indicative that CISCOs sales are good. Days sales in inventory mean the number of days CISCOs products sit in the inventory before they are sold. This should be less, for CISCO it is 11 days.. Which means the inventory gets sold in 11 days which is a very good thing for CISCO. Receivables turnover indicates how effectively a company collects its receivables. d. Profitability Ratios Profit margin Total Net Profit after Interest and Taxes Net Sales Formula (Net Profit / Net Sales) x 100) 6,490 43,218 Profit Margin 15.01% ROA Total Net Profit after Interest and Taxes Total Assets (Net Profit / Total Assets) x 100 6,490 87,095 7.45% Return on Assets Formula Return on Equity or Net Worth = (Net Profit / Net Worth or Owners Equity) x 100 6,490 39,836 47259 ROE 13.73%

ROE

Total net profit after interest and taxes Total Assets - Total Liability Net Worth

Profit Margin is calculated by dividing net profit by net sales. The higher the profit margin, the better. CISCOs profit margin is 15.01% which is ok, but CISCO can do better on profit margin. If there is a slight drop is sales, the company should not incur losses immediately. Hence investors want higher profit margins. Return on Assets gives us a measure of how much profit a company makes with $1 in its assets. CISCOs ROA is 7.45% which means for every dollar in CISCOs assets, it earns $0.0745. A company with low ROA is an asset intensive company. An asset intensive company means that

the company needs to invest more money for generating earnings. The less asset intensive a company is, the better it is. ROA CISCO Motorola Qualcom Corning Harris Juniper Networks Tlabs Average 7.09 3.18 10.17 4.24 10 4.45 -2.06 5.29571429

The average ROA of a few telecommunication companies is 5.29, and CISCOs is 7.09, which means CISCO is doing better and this is a good news for the investors. CISCOs ROE is 13.73% which seems to be good. ROE considers not only the retained earnings of the annual year but also previous years. It is a measure of the efficiency with which the capital is being invested by the company. A large ROE is good. e. Market Value ratios Price Earnings ratio Market Value Per Share Earnings Per Share P.E Ratio = Market Value Per Share/Earnings Per Share 13.65 = x/0.33

4.50 0.33 Price Earnings Ratio 13.65

A high price earnings ratio indicates that high returns are expected by the investors. CISCOs price earnings ratio is high.

f. ROE using exten nded Du Point Analysis

g. Earni ings Forecas st My forec for the Earnings Per Share from the calculat cast E r tions shown above is 0.3 36. Revenue: The revenu is expecte to increase to 44,679 i 2012 which is a 3% in ue ed in ncrease in th he revenue. This forecas is done tak st king into con nsideration t that CISCO is spending huge amoun on nts research and develop pment in order to achieve increase th revenue. C e he CISCO has s spent 14.5 bi illion for the sa ame, in order to achieve $3.4 billion net revenue CISCO has also restructured and r e. s reorganis its business processe CISCO is now focusi on its cor business p sed es. s ing re processes (switches and routers for increas s s) sing its reven nues. With a the restru all ucturing and R and D expenditu the reve ure, enue is most likely to inc crease and be around the fore casted value, whic is e e ch again a positive sign for the stock p kholders of the company t y.

h. Dividen Growth Rate nd R The comp pany started paying out dividends la year, hen ce the divide growth r cannot b d ast end rate be calculated. However from the div vidend history, we can s ee that the d dividend pay yout was 6 pe er cent and this is likely to increase in the future y e.

i. Cross se ectional ana alysis for CI ISCO

CISCOs direct comp s petitors are Alcatel-Luce S.A., He A ent, ewlett-Packa Company Juniper ard y. Networks. From the table above we see tha CISCOs quaterly reve e e, at q enue growth is highest th its h han competitors. The EPS is also high S hest. CISCO is doing wi is almost all of the oth paramete O ill her ers. S o CISCO EPS Comparison with its n CISCO Stock Prices are likely to increase in the future. C competitors in shown in the char below: n rt

CISCOs EPS is bett than all of its competi s ter itors. The ea arnings expe ectations of C CISCO is the last e four quar rters have increased by 3.35 cents pe share, whi is 8.7 inc 3 er ich crease per qu uarter. j. Discount Rate t Capital asset pricing model (CAP is the most popular model of es a PM) m stimating ret turns from ri isky securities such as sto s ock. The requ uired or expe ected return, E(Ri), accor rding to CAP is E(Ri) = Rf + i [E PM ) E(Rmkt) R Rf] Rf = risk free rate = .0035 = 0.08 k . 8% CISCOs beta = i = 0.43 s Rmkt = market-wide stock return = 18% m e ns E(Ri) = Rf + i [E(R R Rmkt) Rf] E(Ri) = 0.08% + 0.43(18 - 0.08%) = 7.7856% for CISCO E 8% ) % O. Hence we can say tha CISCOs expected ret at turn if the ec conomy cont tinues to boo is 7.78% om % k Valuatio based on Discounted Cash Flow k. on d w Applying the formula for the sum of geometr progressi for math g a m ric ion hematics, the fair value o the e of time serie of future cash flows is computed as es P0 = D1 / (R-g) ) CISCO started payin dividends last year, so we will foc on using the Price M s ng o cus Multiples Valuation Method. n

6. Valuation Based on Price Multiples

P/E Ratio Benchmarks: - CISCO: 15.0 - Industry, telecommunications - 14.48 - Networking and telecommunications devices sector average : 16.40 P/E Benchmark average = 15.29 Fair price: P0 = EPS1 * P/E1 = 1.19 * 15.59 = 18.55 for CISCO

7. Risk factors
The demand for CISCOs products and services are fluctuating owing to the changes in the global economic environment.

.

The sales and implementation cycles for CISCOs products have changed and reduced visibility of customers spending plans. The competition has increased in the industry. The technologies keep changing every day. New standards are being adopted every day. The orders from customers are varied. Cost reduction targets. Tax laws and accounting rules change.

8. Appendix A
Income Statement S
Currency in y Millions of US Dollars o s
Revenues Total Revenues Cost Of Go oods Sold Gross Prof fit Selling General & Admin Expenses, Tota E al R&D Expe enses Depreciatio & Amortization, Total on Other Oper rating Expense Total es, Operating Income Interest Ex xpense Interest An Investment In nd ncome Net Interes Expense st Currency Exchange Gains (Loss) E s Other Non-Operating Inco ome (Expenses) ) Ebt, Exclud ding Unusual It tems Merger & Restructuring Charges R Gain (Loss On Sale Of In s) nvestments Other Unusual Items, Tota al In Process R&D Expenses s Ebt, Includ ding Unusual Ite ems Income Ta Expense ax Earnings From Continuing Operations F g Net Income e Net Incom To Common Including Extra Items me n Net Incom To Common Excluding Extra me n Items As of: Jul 26 200 08 Rec classified 39,540.0 39,540.0 14,194.0 25,346.0 10,077.0 5,325.0 466 6.0 15,868.0 9,478.0 -319.0 1,14 43.0 824 4.0 --114.0 10,188.0 -103 3.0 -36.0 -3.0 0 10,255.0 2,203.0 8,052.0 8,052.0 8,052.0 8,052.0 Jul 25 l 200 09 Re eclassified 36, ,117.0 36, ,117.0 13, ,023.0 23, ,094.0 9,9 968.0 5,2 208.0 533 3.0 15, ,709.0 7,3 385.0 -34 46.0 845 5.0 499 9.0 1.0 0 -58 8.0 7,8 827.0 --71 1.0 -63 3.0 -63 3.0 7,6 693.0 1,5 559.0 6,1 34.0 6,1 134.0 6,1 134.0 6,1 134.0 Ju 31 ul 20 010 Re eclassified 40 0,040.0 40 0,040.0 14 4,397.0 25 5,643.0 10 0,715.0 5,2 273.0 49 91.0 16 6,479.0 9,1 164.0 -62 23.0 63 35.0 12 2.0 -24 47.0 9,4 423.0 -8. .0 ---9,4 415.0 1,6 648.0 7,7 767.0 7,7 767.0 7,7 767.0 7,7 767.0 Ju 30 ul 20 011 Re eclassified 43 3,218.0 43 3,218.0 16 6,495.0 26 6,723.0 11 1,720.0 5,8 823.0 42 28.0 17 7,971.0 8,7 752.0 -628.0 64 41.0 13 3.0 -13 38.0 8,9 903.0 -923.0 --155.0 -7,8 825.0 1,3 335.0 6,4 490.0 6,4 490.0 6,4 490.0 6,4 490.0 4 Year Trend

Balance Sheet
Currency in y Millions of US Dollars o s
assets Cash And Equivalents Short-Term Investments m Total Cash And Short Ter Investments h rm Accounts Receivable R Notes Rec ceivable Total Receivables Inventory Prepaid Ex xpenses Deferred Tax Assets, Current T Other Curr rent Assets Total Curre Assets ent Gross Property Plant And Equipment Accumulat Depreciation ted n Net Proper Plant And Equipment rty E Goodwill Long-Term Investments m Accounts Receivable, Lon Term R ng Loans Rec ceivable, Long Term T Deferred Tax Assets, Long Term T Other Intan ngibles Other Long g-Term Assets Total Asse ets 5,191.0 21,044.0 26,235.0 5,105.0 263 3.0 5,368.0 1,235.0 786 6.0 2,075.0 -35,699.0 11,702.0 -7,5 551.0 4,151.0 12,392.0 706 6.0 1,450.0 216 6.0 1,770.0 2,089.0 261 1.0 58,734.0 5,7 718.0 29, ,283.0 35, ,001.0 4,7 743.0 236 6.0 4,9 979.0 1,0 074.0 -2,3 320.0 803 3.0 44, ,177.0 12, ,208.0 -8, 165.0 4,0 043.0 12, ,925.0 709 9.0 1,6 642.0 537 7.0 2,1 22.0 1,7 702.0 271 1.0 68, ,128.0 4,5 581.0 35 5,280.0 39 9,861.0 7,2 232.0 -7,2 232.0 1,3 327.0 -2,1 126.0 87 75.0 51,421.0 11,308.0 -7, ,367.0 3,9 941.0 16 6,674.0 75 56.0 2,6 614.0 -2,0 079.0 3,2 274.0 37 71.0 81,130.0 7,6 662.0 36 6,923.0 44 4,585.0 7,8 809.0 -7,8 809.0 1,4 486.0 -2,4 410.0 94 41.0 57 7,231.0 12 2,066.0 -8,150.0 3,9 916.0 16 6,818.0 79 96.0 3,4 488.0 -1,8 864.0 2,5 541.0 44 41.0 87 7,095.0 As of: Jul 26 200 08 Rec classified Jul 25 l 200 09 Re eclassified Ju 31 ul 20 010 Re eclassified Ju 30 ul 20 011 Re eclassified 4 Year Trend

liabilities & equity Accounts Payable P Accrued Expenses Short-Term Borrowings m Current Po ortion Of Long-T Term Debt/Capit Lease tal Current Inc come Taxes Pa ayable 869 9.0 2,428.0 -500 0.0 107 7.0 675 5.0 2,5 535.0 --166 6.0 89 95.0 3,1 129.0 -3,0 096.0 90 0.0 87 76.0 3,163.0 50 00.0 88 8.0 12 20.0

Other Curr rent Liabilities, Total T Unearned Revenue, Curre ent Total Curre Liabilities ent Long-Term Debt m Minority Interest Unearned Revenue, Non-Current Other Non-Current Liabilit ties Total Liabilities Common Stock S Retained Earnings E Comprehe ensive Income And Other A Total Comm Equity mon Total Equit ty Total Liab bilities And Equ uity

3,757.0 6,197.0 13,858.0 6,393.0 49.0 2,663.0 1,418.0 24,332.0 33,505.0 120 0.0 728 8.0 34,353.0 34,402.0 58,734.0

3,8 841.0 6,4 438.0 13, ,655.0 10, ,295.0 30. .0 2,9 955.0 2,5 546.0 29, ,451.0 34, ,344.0 3,8 868.0 435 5.0 38, ,647.0 38, ,677.0 68, ,128.0

4,3 359.0 7,6 664.0 19 9,233.0 12 2,188.0 -3,4 419.0 2,0 005.0 36 6,845.0 44 4,285.0 --44 4,285.0 44 4,285.0 81,130.0

4,7 734.0 8,0 025.0 17 7,506.0 16 6,234.0 -4,182.0 1,9 914.0 39 9,836.0 47 7,259.0 --47 7,259.0 47 7,259.0 87 7,095.0

ow t Cash Flo Statement

Currency in y Millions of US Dollars o s
Net Income e Depreciatio & Amortization on Amortizatio Of Goodwill And Intangible Assets on A A Depreciatio & Amortizat on tion, Total (Gain) Los On Sale Of In ss nvestment Asset Writedown & Restru ucturing Costs Tax Benef From Stock Options fit O Provision & Write-Off Of Bad Debts B Change In Accounts Rece eivable Change In Inventories Change In Accounts Paya able Change In Unearned Rev venues Change In Income Taxes Change In Other Working Capital Cash From Operations m Capital Expenditure Cash Acqu uisitions Investments In Marketable & Equity Secu e urities Cash From Investing m Short-Term Debt Issued m Long-Term Debt Issued m Total Debt Issued Long Term Debt Repaid m Total Debt Repaid Issuance Of Common Sto O ock Repurchas Of Common Stock se Common Dividends Paid D Total Divid dend Paid Other Fina ancing Activities As of: Jul 26 200 08 Rec classified 8,052.0 1,012.0 699 9.0 1,711.0 -103.0 36.0 -413.0 34.0 171 1.0 104 4.0 62.0 1,812.0 178 8.0 105 5.0 12,089.0 -1,2 268.0 -398.0 -2,5 510.0 -4,1 193.0 -----3,117.0 -10,441.0 --891 1.0 Jul 25 l 200 09 Re eclassified 6,1 134.0 1,0 024.0 649 9.0 1,6 673.0 80. .0 158 8.0 -22 2.0 54. .0 610 0.0 187 7.0 -20 08.0 572 2.0 768 8.0 -76 66.0 9,8 897.0 -1,0 005.0 -42 26.0 -8,4 489.0 -9,9 959.0 -3,9 991.0 3,9 991.0 -50 00.0 -50 00.0 863 3.0 -3,6 611.0 ---15 54.0 Ju 31 ul 20 010 Re eclassified 7,7 767.0 1,5 539.0 49 91.0 2,0 030.0 -22 23.0 --21 11.0 44 4.0 -1, ,528.0 -15 58.0 13 39.0 1,5 531.0 55 5.0 -31 13.0 10 0,173.0 -1, ,008.0 -5, ,279.0 -5, ,772.0 -11 1,931.0 41.0 4,9 944.0 4,9 985.0 --3,2 278.0 -7, ,864.0 --22 22.0 Ju 30 ul 20 011 Re eclassified 6,4 490.0 1,9 966.0 36 65.0 2,3 331.0 -213.0 15 55.0 -71.0 7.0 0 29 98.0 -14 47.0 -28.0 1,0 028.0 -156.0 -1,078.0 10 0,079.0 -1,174.0 -266.0 -1,516.0 -2,934.0 51 12.0 4,109.0 4,6 621.0 -3,113.0 -3,113.0 1,8 831.0 -6,896.0 -658.0 -658.0 15 51.0 4 Year Trend

Cash From Financing m Net Chang In Cash ge

-6,4 433.0 1,463.0

589 9.0 527 7.0

62 21.0 -1, ,137.0

-4,064.0 3,0 081.0

es: Reference
i

http://inv vesting.businessweek.com m/research/stocks/financia als/financials. .asp?ticker=C CSCO:US http://fin nance.yahoo.com/q?s=CSC CO&ql=1 http://fin napps.forbes.com/finapps s/jsp/finance/ /compinfo/Ra atios.jsp?tkr= =CSCO

ii

iii

iv

www.inv vestopedia.co om

http://inv vestor.cisco.c com/stockloo okup.cfm http://w www.cisco.com m/assets/cdc_ _content_ele ements/docs/ /annualreport ts/media/201 11ar.pdf

vi

vii

Ross, Stephen A., Randolph W. Westerfiel and Brad S R W ld, dford D. Jord Essentia of Corporate dan. als r Finance. 6th ed. Bost ton: McGraw w-Hill/Irwin 2008. n,