Cisco Systems Inc (CSCO)

Inventory turnover

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Cost of revenue	US$ in thousands	20,471,000	18,975,000	33,782,000	21,245,000	34,408,000
Inventory	US$ in thousands	3,095,000	3,373,000	3,373,000	3,644,000	3,644,000
Inventory turnover		6.61	5.63	10.02	5.83	9.44

July 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $20,471,000K ÷ $3,095,000K
= 6.61

The inventory turnover ratios of Cisco Systems Inc, as presented in the provided data, demonstrate fluctuations over the specified periods. The figures are as follows:

- On July 29, 2023, the inventory turnover was 9.44.
- Two days later, on July 31, 2023, it declined to 5.83.
- Nearly a year later, on July 27, 2024, the ratio increased to 10.02.
- Shortly thereafter, on July 31, 2024, the ratio decreased to 5.63.
- Approximately one year later, on July 31, 2025, the ratio slightly increased to 6.61.

These variations suggest considerable short-term volatility in inventory management efficiency. The high ratios of 9.44 and 10.02 indicate periods where inventory was turned over relatively quickly, reflecting efficient inventory utilization and possibly strong sales performance during those times. Conversely, the sharp decreases shortly after these high points (to 5.83 and 5.63) indicate periods of slower inventory turnover, possibly due to increased inventory levels, sales slowdown, or strategic stockpiling.

The overall trend from July 31, 2024 (5.63) to July 31, 2025 (6.61) shows a modest increase, implying some improvement in inventory turnover efficiency over that period, but it remains significantly lower than the peak ratios observed earlier.

In summary, Cisco's inventory turnover ratios have experienced notable variability across the observed periods, with a pattern of sharp declines following higher ratios and a slight overall recovery over the course of the year. This pattern may reflect operational adjustments, seasonal influences, or shifts in sales dynamics that impact the company's inventory management effectiveness.