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Cisco operating profit soars +$331 million on mere +$10.862 billion goodwill increase

Note: When combined, Cisco's Q1'FY14 accounts receivable and financing receivables exceed Cisco's Q1'FY14 total net sales by +$1.128 billion.

Hummelstown, PA:   Wed, 11/20/13 - 11:59pm    View comments
 

Over the past 4-years, Cisco's 1st Quarter operating profit has soared an incredibly robust +$331 million while during those same 4-years, Cisco's 1st Quarter goodwill merely increased by a less than noticeable +$10.862 billion.

So exactly how did Cisco CEO John Chambers accomplish such an incredible feat?

Well, it appears to be a "secret sauce" that mixes together DSO, accounts receivable and financing receivables in just the right amounts as shown below:

Cisco's 1st Quarter Financials (view the spreadsheet without frames):

Source: U.S. Securities and Exchange Commission

Note: When combined, Cisco's Q1'FY14 accounts receivable and financing receivables exceed Cisco's Q1'FY14 total net sales by +$1.128 billion.

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