Cisco Systems Inc (CSCO)

Working capital 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
Total current assets	US$ in thousands	36,862,000	43,348,000	36,717,000	39,112,000	43,573,000
Total current liabilities	US$ in thousands	40,584,000	31,309,000	25,640,000	26,257,000	25,331,000
Working capital turnover		—	4.71	4.64	3.87	2.69

July 27, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $53,861,000K ÷ ($36,862,000K – $40,584,000K)
= —

The working capital turnover for Cisco Systems Inc has been showing a positive trend over the past five years. The ratio has been steadily increasing from 2.69 in July 2020 to 4.71 in July 2023, indicating that the company is becoming more efficient in utilizing its working capital to generate revenue.

This improvement suggests that Cisco Systems Inc is managing its current assets and liabilities more effectively, potentially leading to increased profitability and liquidity. A higher working capital turnover ratio signifies that the company is able to generate more sales revenue per dollar of working capital, which can be a positive indicator of operational efficiency.

Overall, the upward trend in the working capital turnover ratio for Cisco Systems Inc reflects a positive financial performance and efficient management of its working capital resources over the past five years.