Cisco Systems Inc (CSCO)
Receivables turnover
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 53,861,000 | 56,682,000 | 51,376,000 | 49,690,000 | 48,991,000 |
| Receivables | US$ in thousands | 10,023,000 | 9,252,000 | 10,505,000 | 10,146,000 | 10,523,000 |
| Receivables turnover | 5.37 | 6.13 | 4.89 | 4.90 | 4.66 |
July 27, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $53,861,000K ÷ $10,023,000K
= 5.37
The receivables turnover ratio of Cisco Systems Inc has fluctuated over the past five years. In the most recent fiscal year ending July 27, 2024, the company had a receivables turnover of 5.37 times, which indicates that, on average, Cisco collected its accounts receivable approximately 5.37 times during the year. This was a decrease from the previous year's ratio of 6.13.
The trend over the past five years shows some variability, with the ratio ranging from 4.66 to 6.13. Generally, a higher receivables turnover ratio is preferred as it suggests that the company is more efficient in collecting its receivables and converting them into cash.
However, it is important to consider the industry norms and company-specific factors when assessing the receivables turnover ratio. A lower turnover ratio may indicate lenient credit terms offered to customers or difficulties in collecting outstanding receivables. Investors and analysts should further investigate the reasons behind the fluctuations to get a better understanding of Cisco Systems Inc's efficiency in managing its accounts receivable.
Peer comparison
Jul 27, 2024