preview

Essay on Cisco

Good Essays

Cisco

Current Performance

As a company Cisco Systems is still a powerhouse in their industry. It is the worldwide leader in networking for the Internet. Although they have broadened their product line tremendously since they first started, they still try to stick to the same business policies and plans that they had when they first started out. Cisco’s net sales for the last fiscal year were over eighteen billion dollars. This is an unbelievable amount of money for a company to generate if you consider this company is not even twenty-five years old. Of this eighteen billion dollars Cisco had a net income of 2.7 billion dollars. Their net sales and net income have grown ever year for the past five years by leaps and …show more content…

In that fifty-two week period the stock had a high of eighty-two dollars and a low thirty-two dollars. This is a lot of movement for a stock over such a short period of time. The good thing about this is that at the end of that traumatic period in the market Cisco was able to keep its stock steady. The market and technology and dot com companies have been taking a hit in the market over the last year. They are not the same easy money makers that they use to be a couple of years ago. People do not trust Internet companies like they use to and now consumers are much more knowledgeable and wary. A lot of people are dumping their computer stock because they are afraid that their stocks are going to fall. This is the reason for the great up and downs in the stock over the year. The stock reacts to how other stocks of its type are also doing. This is part of the outside forces that affect the stock price and the company. People will buy Cisco stock depending on how it is doing compared to its major competition. The stock trades an average of forty seven million shares a day. This is a very high volume of shares to be changing hands everyday. Cisco must watch their actions because any type of decision they make will affect everyone that is trading those forty seven million shares. They hold a 14.1% profit margin on their

Get Access