Cisco Systems Inc (CSCO)

Working capital turnover

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Revenue	US$ in thousands	56,654,000	53,803,000	53,861,000	56,998,000	56,682,000
Total current assets	US$ in thousands	35,341,000	36,862,000	36,862,000	43,348,000	43,348,000
Total current liabilities	US$ in thousands	35,064,000	40,584,000	40,584,000	31,309,000	31,309,000
Working capital turnover		204.53	—	—	4.73	4.71

July 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $56,654,000K ÷ ($35,341,000K – $35,064,000K)
= 204.53

The working capital turnover ratios for Cisco Systems Inc. as provided exhibit notable fluctuations over the relevant periods. As of July 29, 2023, the ratio stood at 4.71, reflecting the company's efficiency in utilizing its working capital during that period. Adjacent data points reveal a slight increase to 4.73 by July 31, 2023, indicating a marginal improvement in the company's ability to generate sales relative to its working capital within this short timeframe.

However, subsequent data for July 27, 2024, and July 31, 2024, are not provided, resulting in a gap in the ratio's tracking, which precludes analysis for that interval. The most striking change is observed on July 31, 2025, where the ratio experiences a substantial spike to 204.53. Such a dramatic increase suggests a significant shift in either sales efficiency, working capital levels, or both.

This sharp rise could imply that Cisco has markedly improved how effectively it utilizes its working capital to generate sales, or it could be the result of operational changes, restructuring, or accounting adjustments affecting either component of the ratio. Alternatively, it could indicate a decrease in working capital or an increase in sales to an extraordinary degree.

In conclusion, the data reflects a period of relative stability in working capital turnover from July 2023 to mid-2024, followed by an extraordinary surge as of July 2025. This trend warrants further investigation into underlying financial activities, especially considering the exceptional ratio magnitude, to better understand the drivers behind this apparent efficiency enhancement.