Cisco Systems Inc (CSCO)

Payables 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
Payables	US$ in thousands	2,528,000	2,304,000	2,304,000	2,313,000	2,313,000
Payables turnover		8.10	8.24	14.66	9.19	14.88

July 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $20,471,000K ÷ $2,528,000K
= 8.10

The payables turnover ratio for Cisco Systems Inc., as derived from the provided data, exhibits notable fluctuations over the specified periods. As of July 29, 2023, the ratio stands at 14.88, indicating that the company was able to settle its accounts payable approximately 14.88 times within the measurement period, reflecting a relatively efficient management of short-term obligations.

By July 31, 2023, the ratio decreased to 9.19, suggesting a decline in payables turnover and potentially implying a lengthening of the average payable period or changes in purchasing or payment practices during this interval.

Moving forward to July 27, 2024, the ratio slightly increased to 14.66, nearly returning to the previous high of 14.88. This suggests a relative improvement or stabilization in the company's payables management after the dip experienced in 2023.

However, by July 31, 2024, the ratio further declined to 8.24, indicating a significant reduction in payables turnover and pointing towards a lengthening of the accounts payable period or changes in payment policy, which could impact cash flow management.

Finally, the latest available data as of July 31, 2025, shows an additional slight decrease to 8.10. This ongoing decline in the payables turnover ratio may reflect continued extension of payable periods, shifts in supplier relationships, or strategic adjustments in payment terms.

Overall, the trend indicates periods of both stabilization and decline in payables turnover. While there were episodes of high turnover indicative of prompt payments, recent figures suggest a tendency toward extending payment durations, which, if sustained, could influence liquidity and supplier relationships. Continued monitoring of this ratio, alongside other liquidity and operational metrics, would be necessary to assess the implications for Cisco Systems’ financial health and working capital management.