Cisco Systems Inc (CSCO)

Inventory turnover

		Jul 27, 2024	Apr 27, 2024	Jan 27, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 23, 2021	Oct 24, 2020	Jul 25, 2020	Apr 25, 2020	Jan 25, 2020	Oct 26, 2019
Cost of revenue (ttm)	US$ in thousands	33,222,000	33,378,000	33,793,000	34,252,000	34,078,000	33,058,000	32,042,000	31,394,000	30,817,000	30,666,000	30,699,000	30,117,000	30,133,000	29,656,000	28,951,000	29,010,000	29,202,000	29,823,000	30,706,000	31,172,000
Inventory	US$ in thousands	3,373,000	3,118,000	3,209,000	3,342,000	3,644,000	3,474,000	3,140,000	2,664,000	2,568,000	2,231,000	2,059,000	1,832,000	1,559,000	1,579,000	1,436,000	1,303,000	1,282,000	1,212,000	1,353,000	1,344,000
Inventory turnover		9.85	10.70	10.53	10.25	9.35	9.52	10.20	11.78	12.00	13.75	14.91	16.44	19.33	18.78	20.16	22.26	22.78	24.61	22.69	23.19

July 27, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $33,222,000K ÷ $3,373,000K
= 9.85

The inventory turnover for Cisco Systems Inc has shown a consistent increasing trend over the past few years, indicating efficient management of inventory levels. The company's inventory turnover ratio has steadily improved from 9.35 in July 2023 to 24.61 in January 2020. This suggests that Cisco has been able to sell its inventory more frequently in recent years, which is a positive sign of inventory management efficiency.

The highest inventory turnover recorded was 24.61 in January 2020, indicating that Cisco was able to sell and replace its entire inventory almost 25 times during that period. This reflects strong sales and inventory management practices, ensuring that the company is not holding excessive or obsolete inventory.

Overall, the upward trend in inventory turnover demonstrates Cisco's ability to effectively manage its inventory levels, optimize stock turnover, and maintain a lean and efficient supply chain.