Cisco Systems Inc (CSCO)

Payables turnover

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Cost of revenue	US$ in thousands	33,782,000	34,408,000	30,820,000	30,409,000	29,372,000
Payables	US$ in thousands	2,304,000	2,313,000	2,281,000	2,362,000	2,218,000
Payables turnover		14.66	14.88	13.51	12.87	13.24

July 27, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $33,782,000K ÷ $2,304,000K
= 14.66

The payables turnover ratio for Cisco Systems Inc has been relatively stable over the past five years, ranging from 12.87 to 14.88. The higher turnover ratios indicate that Cisco is efficiently managing its accounts payable by paying off its suppliers more frequently within a shorter period. This suggests strong liquidity management and the ability to negotiate favorable credit terms with suppliers. Overall, Cisco's consistent performance in payables turnover ratio portrays effective working capital management.