Cisco Systems Inc (CSCO)

Cash conversion cycle

		Jul 31, 2025	Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Jul 27, 2024	Apr 30, 2024	Apr 27, 2024	Jan 31, 2024	Jan 27, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022
Days of inventory on hand (DOH)	days	57.20	53.47	45.84	50.19	46.83	47.34	45.71	44.49	45.21	43.73	43.49	43.14	46.89	47.37	46.49	46.58	42.52	42.54	36.39	37.18
Days of sales outstanding (DSO)	days	43.17	54.04	57.27	50.83	69.08	70.21	61.89	59.58	55.78	53.42	50.55	50.63	56.59	58.46	55.27	56.19	59.11	59.40	62.43	63.37
Number of days of payables	days	46.72	42.67	29.79	31.88	31.99	32.34	30.11	29.31	26.04	25.18	27.12	26.90	29.76	30.07	32.68	32.74	31.54	31.55	31.63	32.32
Cash conversion cycle	days	53.65	64.84	73.32	69.14	83.92	85.21	77.49	74.76	74.96	71.97	66.92	66.87	73.71	75.76	69.08	70.02	70.09	70.38	67.18	68.23

July 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.20 + 43.17 – 46.72
= 53.65

The analysis of Cisco Systems Inc.'s cash conversion cycle (CCC) over the period from October 2022 through July 2025 reveals notable fluctuations indicative of underlying operational and financial dynamics. Initially, the CCC stood at approximately 68.23 days in October 2022, with a slight decline observed toward October 2023, reaching around 66.87 days. This suggests a relatively stable cycle during this period, reflecting consistent efficiency in managing inventory, receivables, and payables.

In early 2024, the CCC increased significantly, reaching approximately 74.96 days in January 2024 and peaking at 77.49 days by April 2024. This elongation indicates a deterioration in the company's liquidity management efficiency, possibly due to longer receivables collection periods, extended inventory holding, or delayed payables.

Subsequently, a pronounced decline is observed from July 2024 onward, where the CCC decreased markedly to a low of approximately 53.65 days by July 2025. This trend suggests an improvement in working capital management, with faster collection of receivables, optimized inventory turnover, or more prompt payments to suppliers.

Overall, the data depicts a cyclical pattern where the cash conversion cycle expanded significantly in the early 2024 period before streamlined operations and improved working capital efficiency shortened the cycle substantially by mid-2025. Such variations in the CCC reflect the company's evolving operational strategies, market conditions, and credit policies over the analyzed timeframe.