Cisco Systems Inc (CSCO)
Activity ratios
Short-term
Turnover ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.61 | 5.63 | 10.02 | 5.83 | 9.44 |
| Receivables turnover | 5.80 | 5.37 | 5.37 | 6.19 | 6.13 |
| Payables turnover | 8.10 | 8.24 | 14.66 | 9.19 | 14.88 |
| Working capital turnover | 204.53 | — | — | 4.73 | 4.71 |
The analysis of Cisco Systems Inc.'s activity ratios based on the provided data reveals several trends and noteworthy points across different periods:
Inventory Turnover:
The inventory turnover ratios exhibit variability over the observed periods. From July 29, 2023, to July 31, 2023, there is a significant decline from 9.44 to 5.83, indicating a slowdown in inventory sales or increased inventory levels relative to sales. However, by July 27, 2024, the ratio increases sharply to 10.02, suggesting improved inventory management and faster turnover, before declining again slightly to 5.63 by July 31, 2024. Subsequently, the ratio recovers to 6.61 by July 31, 2025, indicating a potential stabilization or improvement in inventory turnover efficiency.
Receivables Turnover:
The receivables turnover ratio shows minor fluctuations, starting at 6.13 on July 29, 2023, and slightly increasing to 6.19 by July 31, 2023. A decline to 5.37 is observed by July 27, 2024, and holds steady at 5.37 on July 31, 2024, before rising modestly to 5.80 by July 31, 2025. These trends suggest relative consistency in receivables collection cycles, with slight improvements in the most recent period.
Payables Turnover:
The payables turnover ratios reflect a decreasing trend over time. Initially high at 14.88 on July 29, 2023, and 9.19 on July 31, 2023, there is a notable decline to 14.66 by July 27, 2024, followed by further decreases to 8.24 and then 8.10 by July 31, 2024, and July 31, 2025, respectively. This decline indicates a lengthening of the payables period, possibly suggesting delayed payments to suppliers or changes in payment policies.
Working Capital Turnover:
The working capital turnover ratio remains steady at approximately 4.71–4.73 during the 2023 period but is not available for the 2024 periods, possibly due to data limitations or changes in calculation. Notably, a substantial increase to 204.53 is recorded by July 31, 2025, which reflects a significant improvement or change in the working capital utilization efficiency. Such a spike may be attributable to operational scaling, asset management changes, or financial restructuring occurring between these periods.
Summary:
Overall, Cisco's activity ratios suggest a pattern of fluctuating inventory management efficiency, generally stable receivables collection cycles, a trend toward extended supplier payment periods, and a marked increase in working capital utilization efficiency by mid-2025. These shifts could indicate strategic adjustments in inventory and payables management, operational scaling, or financial policy changes aimed at optimizing working capital utilization.
Average number of days
| Jul 31, 2025 | Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.18 | 64.88 | 36.44 | 62.61 | 38.66 |
| Days of sales outstanding (DSO) | days | 62.89 | 68.00 | 67.92 | 58.95 | 59.58 |
| Number of days of payables | days | 45.07 | 44.32 | 24.89 | 39.74 | 24.54 |
The activity ratios of Cisco Systems Inc., specifically Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, exhibit notable trends over the periods analyzed.
Days of Inventory on Hand (DOH):
The data reveals a significant decrease in inventory holding periods between July 2023 and July 2024. Initially, the DOH was approximately 38.66 days as of July 29, 2023, and increased to 62.61 days by July 31, 2023. However, by July 27, 2024, the DOH decreased sharply to 36.44 days, and slightly increased again to 64.88 days by July 31, 2024, before decreasing to 55.18 days as of July 31, 2025. These fluctuations suggest periods of inventory accumulation followed by elimination, which could correspond to inventory optimization or adjustments in supply chain management.
Days of Sales Outstanding (DSO):
The DSO figures show a relatively stable yet slightly increasing trend from approximately 59.58 days (July 29, 2023) to 68.00 days (July 31, 2024). Notably, by July 27, 2024, DSO had increased to 67.92 days. As of July 31, 2025, the DSO decreased moderately to 62.89 days. The data indicates that the average collection period has generally been lengthening over this timeframe, which may impact cash flow management, though the decline in 2025 suggests some improvement in the collection cycle.
Number of Days of Payables:
The payables period displays variability over the period. It was approximately 24.54 days (July 29, 2023), increased sharply to 39.74 days (July 31, 2023), and then stabilized around 24.89 days (July 27, 2024). Subsequently, it increased to 44.32 days by July 31, 2024, and further to 45.07 days as of July 31, 2025. The lengthening of the payables period indicates that the company may be delaying payments to suppliers, potentially improving cash flow flexibility, but also possibly impacting relationships with vendors if extended for prolonged periods.
Summary of Trends:
Overall, Cisco's activity ratios depict periods of inventory and receivables accumulation, followed by phases of optimization. The substantial fluctuations in inventory days and payables suggest efforts to manage working capital efficiently, possibly responding to internal or external supply chain and sales dynamics. The gradually increasing DSO warrants attention as it can reflect either extended credit policies or slower collections, which could sequentially affect liquidity.
In conclusion, the activity ratios indicate a strategic focus on balancing inventory levels and cash flow, with observable variability that might be aligned with broader operational or market conditions.
See also:
Long-term
| Jul 31, 2025 | Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 17.05 | 25.77 | 27.34 | 27.19 |
| Total asset turnover | 0.46 | 0.43 | 0.43 | 0.56 | 0.56 |
The analysis of Cisco Systems Inc.'s long-term activity ratios reveals notable trends over the specified periods. The fixed asset turnover ratio demonstrates variability, with values of 27.19 and 27.34 at the end of July 2023, indicating robust utilization of fixed assets during this time. However, a decline is observed by the end of July 2024, with the ratio decreasing to 25.77. Subsequently, a significant reduction occurs, with the ratio dropping to 17.05 by the end of July 2024, suggesting a diminished efficiency in generating sales from fixed assets. The ratio for July 31, 2025, is not provided, precluding further analysis for that date.
In contrast, the total asset turnover ratio remains relatively stable across the observed periods, with values of 0.56 at both the end of July 2023. By the end of July 2024, it decreases to 0.43, indicating a reduction in overall asset efficiency in generating sales. This level remains unchanged at 0.43 by the same period the following year, with a slight increase to 0.46 noted by July 31, 2025. These figures suggest that while overall asset efficiency experienced a decline in the short term, it shows signs of modest recovery or stabilization by the end of the observed timeline.
Overall, Cisco's fixed asset turnover ratio has experienced a substantial decrease, signaling reduced fixed asset utilization efficiency or potential changes in asset management or operational focus. The total asset turnover ratio’s decline followed by stabilization reflects a similar trend in overall asset utilization. These ratios collectively indicate a short-term downturn in asset efficiency, warranting further investigation into operational changes or strategic shifts influencing asset deployment and utilization.