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.
Peer comparison
Jul 27, 2024