Cisco Systems Inc (CSCO)

Cash ratio

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Cash and cash equivalents	US$ in thousands	7,508,000	10,123,000	7,079,000	9,175,000	11,809,000
Short-term investments	US$ in thousands	10,346,000	16,023,000	12,188,000	15,343,000	17,610,000
Total current liabilities	US$ in thousands	40,584,000	31,309,000	25,640,000	26,257,000	25,331,000
Cash ratio		0.44	0.84	0.75	0.93	1.16

July 27, 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 a declining trend over the past five years, indicating a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.

As of July 27, 2024, the cash ratio stood at 0.44, which means that for every dollar of current liabilities, the company had 44 cents in cash and cash equivalents. This implies a lower liquidity position compared to the prior year.

In comparison, the cash ratio was at its highest in July 25, 2020, at 1.16, demonstrating the company's stronger ability to meet its short-term obligations with cash reserves at that time.

Overall, the decreasing trend in the cash ratio indicates a potential weakening of Cisco Systems Inc's liquidity position, which may warrant further investigation into the company's cash management and financial health.