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 Cisco income tax expense huge, Reason?

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TSilovestitch
post Mar 11 2019, 09:01 PM, updated 6y ago

On my way
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I am new in the stock market, trying to study about the company financial report at the moment as i see cisco net income has dropped tremendously as compared to past years. As what i see it has to do with the huge income tax expense, but i don't understand why suddenly such huge amount of tax impose. can any sifu explain? thanks


https://finance.yahoo.com/quote/CSCO/financials?p=CSCO
thefryingfox
post Mar 11 2019, 09:26 PM

Lonely Maharajah
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Power of Huawei .....they even dare give you Thier router and switches for you for free to replace your Cisco equipment...Just charge you mentainance.


Told be honest...the cloud has also created a dent in ther margins. No one buy equipment as everything in the cloud
TSilovestitch
post Mar 11 2019, 11:37 PM

On my way
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QUOTE(thefryingfox @ Mar 11 2019, 09:26 PM)
Power of Huawei .....they even dare give you Thier router and switches for you for free to replace your Cisco equipment...Just charge you mentainance.
Told be honest...the cloud has also created a dent in ther margins. No one buy equipment as everything in the cloud
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But from the financial report, it is the huge figure tax causing the income drop wor.
Yggdrasil
post Mar 12 2019, 07:13 AM

Look at all my stars!!
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Try looking at their annual report than figures from Yahoo Finance
danmooncake
post Mar 18 2019, 11:58 PM

Market Up, Market Down...Wheee..
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QUOTE(ilovestitch @ Mar 11 2019, 09:01 PM)
I am new in the stock market, trying to study about the company financial report at the moment as i see cisco net income has dropped tremendously as compared to past years. As what i see it has to do with the huge income tax expense, but i don't understand why suddenly such huge amount of tax impose. can any sifu explain? thanks


https://finance.yahoo.com/quote/CSCO/financials?p=CSCO
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Last year (2018), a lot of company like CSCO took advantage of the tax law (Trump offer that to corporates) to repatriate some cash back from overseas and book that as profits. So, if you book that as profits, you have to pay US income tax when you do that, hence they pay more income tax based on revenue, hence resulting in lower net income. Neverthe less, it hasn't affected their share prices a bit in 2018. Also, earlier part of the year, they post a loss after shares buyback. This is how major companies boost their shares prices too.

QUOTE(thefryingfox @ Mar 11 2019, 09:26 PM)
Power of Huawei .....they even dare give you Thier router and switches for you for free to replace your Cisco equipment...Just charge you mentainance.
Told be honest...the cloud has also created a dent in ther margins. No one buy equipment as everything in the cloud
*
Well, the expansion in cloud services is what driving the business of these telecom equipment providers are focusing now.
Most income are coming from service providers. While Huawei is leading in emerging markets but not US and some developed market since Huawei got trust issues to deal and margin isn't the issue here.

It's difficult to gauge Huawei too since they're not a public company, no one really knows if making money or losing or continue to get subsidy from the Chinese government to gain market share.


This post has been edited by danmooncake: Mar 19 2019, 12:06 AM

 

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