Cisco Systems Inc (CSCO)

Short-term

Turnover ratios

Based on the activity ratios provided for Cisco Systems Inc, we can analyze the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
The inventory turnover ratios fluctuate over the periods analyzed, ranging from 7.33 to 10.03. A higher inventory turnover ratio indicates that Cisco is selling its products more quickly, which is generally seen as positive. The trend shows some variability, with occasional decreases or increases in turnover efficiency.

2. Receivables Turnover:
The receivables turnover ratios are not consistently reported but show a general increase in efficiency over the periods where data is available. A higher receivables turnover ratio suggests that the company is collecting its receivables more efficiently. However, the incomplete data makes it challenging to analyze the trend comprehensively.

3. Payables Turnover:
The payables turnover ratios for Cisco show an increasing trend over the periods where data is provided. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be a positive sign as it reflects better cash flow management. However, incomplete data makes it difficult to assess the consistency of this trend.

4. Working Capital Turnover:
The working capital turnover ratios show a generally stable or increasing trend, indicating that Cisco is efficiently utilizing its working capital to generate revenue. A higher working capital turnover ratio signifies that the company is generating more revenue per dollar of working capital. The significant increase in the working capital turnover ratio in the most recent period suggests improved efficiency in capital utilization.

In conclusion, while the analysis provides insights into Cisco Systems Inc's activity ratios, the incomplete data for some ratios limits a thorough assessment of the company's efficiency in managing its inventory, receivables, payables, and working capital over time.

---

Average number of days

Based on the provided data, let's analyze the activity ratios of Cisco Systems Inc:

1. Days of Inventory on Hand (DOH):
- Cisco's DOH has been fluctuating over the periods, ranging from around 36 to 47 days.
- The trend shows a slight increase in recent periods, indicating that the company is holding inventory for a longer period before selling it.
- A higher DOH may suggest less efficient inventory management or slower inventory turnover, which could tie up working capital.

2. Days of Sales Outstanding (DSO):
- The DSO for Cisco is also varying, with values ranging from around 50 to 70 days.
- There are some periods where DSO data is missing, making it challenging to assess the collection efficiency.
- A lower DSO indicates that the company is collecting receivables faster, while a higher DSO may imply inefficiency in collecting payments from customers.

3. Number of Days of Payables:
- Cisco's payables period seems to be decreasing gradually over the periods, reaching around 25 to 33 days.
- A decreasing trend in days of payables suggests that the company is taking fewer days to pay its suppliers.
- While a lower payables period can indicate strong vendor relationships, it may also indicate potential liquidity concerns if payments are being made too quickly.

In conclusion, Cisco Systems Inc's activity ratios reflect fluctuations in inventory management, accounts receivable collection, and accounts payable practices. Monitoring these ratios can provide insights into the company's operational efficiency and liquidity management.

---

See also:

Cisco Systems Inc Short-term (Operating) Activity Ratios (Quarterly Data)

---

Long-term

Based on the provided data on Cisco Systems Inc's long-term activity ratios, we see the following trends:

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Cisco's fixed asset turnover has generally shown an increasing trend from July 30, 2022, to January 27, 2024, peaking at 29.72 on October 31, 2023. This indicates that Cisco has become more efficient in utilizing its fixed assets to generate sales. However, the ratio experienced a decline in the last reported period, dropping to 24.93 on July 27, 2024, which suggests a potential decrease in asset productivity.

2. Total Asset Turnover: The total asset turnover ratio assesses the efficiency of a company in generating sales from all its assets. Cisco's total asset turnover has fluctuated over the period analyzed, ranging from 0.41 to 0.60. The ratio generally trended upwards until October 31, 2023, indicating improved efficiency in utilizing total assets to generate revenue. However, there was a significant decline in recent periods, with ratios dropping to 0.43 and 0.46 on July 31, 2024, and January 31, 2025, respectively.

Overall, while Cisco has shown varying levels of efficiency in generating revenue from its assets, the recent declines in both fixed asset turnover and total asset turnover ratios may indicate a potential need for the company to reassess its asset utilization strategies to maintain or improve its long-term operational efficiency.

---

See also:

Cisco Systems Inc Long-term (Investment) Activity Ratios (Quarterly Data)