Cisco Systems Inc (CSCO)
Cash ratio
| Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,508,000 | 7,508,000 | 10,123,000 | 10,123,000 | 7,079,000 |
| Short-term investments | US$ in thousands | 10,346,000 | 10,346,000 | 16,023,000 | 16,023,000 | 12,188,000 |
| Total current liabilities | US$ in thousands | 40,584,000 | 40,584,000 | 31,309,000 | 31,309,000 | 25,640,000 |
| Cash ratio | 0.44 | 0.44 | 0.84 | 0.84 | 0.75 |
July 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,508,000K
+ $10,346,000K)
÷ $40,584,000K
= 0.44
The cash ratio of Cisco Systems Inc has shown some fluctuations over the past few years. As of July 31, 2022, the company had a cash ratio of 0.75, indicating that it had $0.75 in cash and cash equivalents for every $1 of current liabilities. By July 29, 2023, the cash ratio improved to 0.84, signaling a strengthening liquidity position. This ratio remained stable at 0.84 as of July 31, 2023.
However, there was a notable decline in the cash ratio to 0.44 on both July 27, 2024 and July 31, 2024. This decrease may suggest a potential decrease in the company's ability to cover its short-term obligations solely with cash and cash equivalents during those periods. It would be important to investigate the reasons behind this drop and assess any potential implications for Cisco Systems Inc's financial health and liquidity management.
Peer comparison
Jul 31, 2024