Cisco Systems Inc (CSCO)

Cash conversion cycle

		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	Jul 31, 2022	Jul 30, 2022
Days of inventory on hand (DOH)	days	45.84	49.80	46.51	47.34	45.70	44.80	45.52	43.73	43.49	43.14	46.89	47.37	46.49	46.58	42.52	42.54	36.39	37.18	41.63	37.62
Days of sales outstanding (DSO)	days	—	—	—	70.21	—	59.58	—	53.42	—	50.63	—	58.46	—	56.19	—	59.40	—	63.37	—	74.76
Number of days of payables	days	—	—	—	32.33	—	29.51	—	25.18	—	26.90	—	30.07	—	32.74	—	31.55	—	32.32	—	33.41
Cash conversion cycle	days	45.84	49.80	46.51	85.21	45.70	74.86	45.52	71.97	43.49	66.87	46.89	75.76	46.49	70.02	42.52	70.38	36.39	68.23	41.63	78.97

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.84 + — – —
= 45.84

The cash conversion cycle (CCC) of Cisco Systems Inc has shown fluctuations over the data period provided. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From July 2022 to January 2023, Cisco's CCC decreased from 78.97 days to 42.52 days, indicating an improvement in the company's efficiency in managing its cash conversion cycle. However, the CCC increased to 70.02 days by April 2023 before declining again to 46.49 days by July 2023.

The CCC fluctuated throughout 2024, starting at 85.21 days in July and peaking at 75.76 days in October before decreasing to 45.84 days by January 2025. These variations suggest that Cisco's management of inventory, accounts receivable, and accounts payable has been somewhat inconsistent during this period.

Overall, Cisco's CCC has shown some volatility, but the general trend indicates efforts to optimize and streamline the company's cash conversion process. It is important for Cisco to continue monitoring and improving its cash conversion cycle to effectively manage working capital and enhance financial performance.