Cisco Systems Inc (CSCO)

Cash ratio

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Cash and cash equivalents	US$ in thousands	8,346,000	7,508,000	7,508,000	10,123,000	10,123,000
Short-term investments	US$ in thousands	7,764,000	10,346,000	10,346,000	16,023,000	16,023,000
Total current liabilities	US$ in thousands	35,064,000	40,584,000	40,584,000	31,309,000	31,309,000
Cash ratio		0.46	0.44	0.44	0.84	0.84

July 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,346,000K + $7,764,000K) ÷ $35,064,000K
= 0.46

The cash ratio of Cisco Systems Inc, as depicted in the provided data, reflects notable fluctuations over the specified periods. As of July 29, 2023, and July 31, 2023, the cash ratio was consistently recorded at 0.84, indicating that the company's cash and cash equivalents were sufficient to cover approximately 84% of its current liabilities. This high ratio suggests a strong liquidity position, with a significant cushion of liquid assets relative to short-term obligations.

Moving forward to July 27, 2024, and July 31, 2024, the cash ratio experienced a decline to 0.44, approximately halved compared to the previous year. This reduction signifies a diminished capacity to meet current liabilities solely through cash and cash equivalents, pointing to a potential shift in liquidity management or changes in the composition of current assets.

By July 31, 2025, the cash ratio stabilized marginally at 0.46, indicating a slight increase from the previous year but remaining substantially lower than the levels observed in 2023. This suggests a persistent decrease in the company's relative liquidity buffer, which may be attributed to strategic asset allocation, accumulation of other liquid assets, or changes in the current liabilities structure.

In summary, Cisco's cash ratio demonstrates a downward trend over the two-year span, moving from a robust 0.84 in mid-2023 to approximately 0.46 in mid-2025. This decline reflects a decreasing reliance on immediate cash reserves to meet short-term obligations, potentially implying a shift towards broader liquidity management strategies or changes in operational liquidity requirements.