Cisco Systems Inc (CSCO)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.37	6.39	6.80	6.99	6.13	6.42	6.04	5.71	4.89	5.36	5.15	5.40	4.90	—	5.13	5.27	4.66	5.43	5.58	5.20
Payables turnover	14.42	16.25	18.29	16.44	14.73	13.54	13.76	13.56	13.51	13.40	14.61	13.32	12.76	12.15	15.51	12.65	13.17	12.46	15.87	15.46
Working capital turnover	—	—	5.04	4.57	4.71	4.86	4.69	4.63	4.64	4.35	4.73	3.53	3.87	3.81	2.88	2.99	2.69	3.27	2.84	3.01

Cisco Systems Inc's activity ratios reflect the company's efficiency in managing its assets and liabilities.

The inventory turnover ratio has been relatively stable over the periods analyzed, indicating that Cisco is efficiently managing its inventory levels and turning over inventory more than 9 times a year on average. This suggests that the company is effectively selling its products.

The receivables turnover ratio demonstrates the efficiency of Cisco in collecting outstanding receivables from customers. The ratio has shown some fluctuations but generally indicates that Cisco is collecting receivables efficiently, with an average turnover rate of about 5 to 6 times per year.

The payables turnover ratio indicates how quickly Cisco is paying its suppliers. The ratio has been relatively consistent, showing that Cisco is managing its payables effectively, with an average turnover rate of around 14 to 16 times per year. This implies that Cisco is maintaining good relationships with its suppliers.

The working capital turnover ratio reveals how well Cisco is utilizing its working capital to generate revenue. The ratio fluctuates over the periods analyzed, but on average, Cisco generates revenue about 4 to 5 times for each dollar of working capital invested. This shows that Cisco is efficiently using its working capital to support its operations and generate sales.

Overall, the activity ratios indicate that Cisco Systems Inc is effectively managing its assets and liabilities to support its operational activities and generate revenue efficiently.

Average number of days

		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
Days of inventory on hand (DOH)	days	37.06	34.10	34.66	35.61	39.03	38.36	35.77	30.97	30.42	26.55	24.48	22.20	18.88	19.43	18.10	16.39	16.02	14.83	16.08	15.74
Days of sales outstanding (DSO)	days	67.92	57.16	53.67	52.18	59.58	56.83	60.45	63.96	74.63	68.04	70.93	67.53	74.53	—	71.12	69.23	78.32	67.26	65.43	70.26
Number of days of payables	days	25.31	22.46	19.96	22.21	24.77	26.96	26.53	26.93	27.02	27.24	24.98	27.40	28.61	30.03	23.54	28.86	27.72	29.29	23.00	23.61

Days of inventory on hand (DOH) for Cisco Systems Inc have been relatively stable over the past two years, ranging from 22.20 days to 39.03 days. This indicates that the company is managing its inventory efficiently, with a decreasing trend implying a more agile inventory turnover.

Days of sales outstanding (DSO) show variation, ranging from 52.18 days to 78.32 days, in the same period. This suggests that the company may have some challenges in collecting payments from customers promptly, with lower DSO values indicating improved efficiency in accounts receivable management.

The number of days of payables for Cisco Systems Inc has also shown fluctuations between 19.96 days and 30.03 days. A higher number of days of payables could indicate that the company is taking longer to pay its suppliers, potentially benefiting from extended credit terms.

Overall, Cisco Systems Inc should aim to lower DSO and increase DOH to optimize working capital management, while also maintaining a balance in its payable days to ensure healthy supplier relationships.

Long-term

	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
Fixed asset turnover	25.77	27.36	28.35	28.79	27.19	26.68	26.92	26.40	25.73	25.14	24.04	22.64	21.25	20.60	20.08	19.86	19.99	19.85	19.49	19.28
Total asset turnover	0.43	0.44	0.56	0.58	0.56	0.56	0.55	0.56	0.55	0.55	0.55	0.53	0.51	0.52	0.50	0.50	0.52	0.55	0.56	0.56

Long-term activity ratios provide insights into how efficiently a company utilizes its assets to generate sales. In the case of Cisco Systems Inc, we can see that the fixed asset turnover ratio has been relatively stable over the past few years, ranging from 19.28 to 28.79 times. This indicates that Cisco is generating revenue efficiently from its fixed assets, such as property, plant, and equipment.

On the other hand, the total asset turnover ratio has fluctuated between 0.43 and 0.58 times during the same period. This ratio shows how well Cisco is utilizing all its assets, including both fixed and current assets, to generate sales. The fluctuations in the total asset turnover ratio may indicate changes in the company's asset base or its ability to generate sales relative to its asset size.

Overall, Cisco's long-term activity ratios suggest a relatively efficient utilization of assets to generate sales, with the fixed asset turnover ratio showing consistent performance and the total asset turnover ratio fluctuating within a certain range. Further analysis of the company's asset composition and revenue generation strategies would provide additional insights into its long-term efficiency and performance.