Cisco Systems Inc (CSCO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	8,556,000	9,065,000	7,508,000	7,508,000	9,678,000	8,913,000	14,280,000	13,715,000	9,602,000	9,602,000	10,123,000	10,123,000	8,044,000	8,044,000	9,009,000	9,009,000	7,292,000	7,292,000	7,079,000	7,079,000
Short-term investments	US$ in thousands	8,297,000	9,606,000	10,346,000	10,346,000	9,857,000	9,857,000	11,956,000	11,956,000	13,921,000	13,921,000	16,023,000	16,023,000	15,244,000	15,244,000	13,052,000	13,052,000	12,492,000	12,492,000	12,188,000	12,188,000
Total current liabilities	US$ in thousands	40,019,000	40,542,000	40,584,000	40,584,000	40,108,000	40,108,000	30,851,000	30,851,000	27,035,000	27,035,000	31,309,000	31,309,000	28,719,000	28,719,000	27,252,000	27,252,000	24,896,000	24,896,000	25,640,000	25,640,000
Cash ratio		0.42	0.46	0.44	0.44	0.49	0.47	0.85	0.83	0.87	0.87	0.84	0.84	0.81	0.81	0.81	0.81	0.79	0.79	0.75	0.75

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,556,000K + $8,297,000K) ÷ $40,019,000K
= 0.42

The cash ratio of Cisco Systems Inc has shown a fluctuating trend over the reported periods. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

From July 2022 to January 2023, the cash ratio remained relatively stable at around 0.75 to 0.81, suggesting that Cisco had a consistent level of cash to meet its short-term obligations during this period.

There was a noticeable improvement in the cash ratio from January to July 2023, increasing to 0.84 and then further to 0.87 by October 2023. This indicates an increase in Cisco's cash reserves relative to its short-term liabilities during this period.

However, there was a slight decline in the cash ratio in January 2024 to 0.83, followed by a notable drop to 0.44 in July 2024. This significant decrease may suggest that Cisco had lower cash reserves available to cover its short-term liabilities during this period.

Overall, the cash ratio of Cisco Systems Inc has displayed variability, with some periods showing strong liquidity positions while others indicating potential liquidity challenges. It is important for investors and stakeholders to closely monitor changes in the cash ratio to assess the company's short-term liquidity health.