Cisco Systems Inc (CSCO)
Inventory turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 27, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 23,306,000 | 23,034,000 | 26,471,000 | 26,009,000 | 24,903,000 | 25,406,000 | 25,730,000 | 26,786,000 | 28,048,000 | 28,276,000 | 28,367,000 | 28,077,000 | 27,274,000 | 27,221,000 | 26,956,000 | 26,941,000 | 26,724,000 | 26,152,000 | 22,516,000 | 24,916,000 |
| Inventory | US$ in thousands | 2,927,000 | 3,143,000 | 3,373,000 | 3,373,000 | 3,118,000 | 3,118,000 | 3,209,000 | 3,209,000 | 3,342,000 | 3,342,000 | 3,644,000 | 3,644,000 | 3,474,000 | 3,474,000 | 3,140,000 | 3,140,000 | 2,664,000 | 2,664,000 | 2,568,000 | 2,568,000 |
| Inventory turnover | 7.96 | 7.33 | 7.85 | 7.71 | 7.99 | 8.15 | 8.02 | 8.35 | 8.39 | 8.46 | 7.78 | 7.70 | 7.85 | 7.84 | 8.58 | 8.58 | 10.03 | 9.82 | 8.77 | 9.70 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $23,306,000K ÷ $2,927,000K
= 7.96
Cisco Systems Inc's inventory turnover has fluctuated over the periods provided, ranging from 7.33 to 10.03. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific time frame. A higher turnover ratio generally indicates more efficient inventory management.
In the most recent period of January 31, 2025, the inventory turnover ratio was 7.96, suggesting that Cisco effectively sold and replaced its inventory nearly 8 times during that period. This figure is in line with the company's historical averages and demonstrates reasonable efficiency in managing inventory.
It is important to monitor inventory turnover over time to ensure that levels are neither too high, leading to potential stockouts, nor too low, indicating excess inventory and potential obsolescence issues. Cisco's management should continue to analyze and optimize inventory levels to maintain operational efficiency and financial health.
Peer comparison
Jan 31, 2025
Jan 31, 2025