Cisco Systems Inc (CSCO)
Current ratio
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 36,862,000 | 43,348,000 | 36,717,000 | 39,112,000 | 43,573,000 |
| Total current liabilities | US$ in thousands | 40,584,000 | 31,309,000 | 25,640,000 | 26,257,000 | 25,331,000 |
| Current ratio | 0.91 | 1.38 | 1.43 | 1.49 | 1.72 |
July 27, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $36,862,000K ÷ $40,584,000K
= 0.91
The current ratio of Cisco Systems Inc has been on a decreasing trend over the past five years, indicating a decline in the company's short-term liquidity position. The ratio decreased from 1.72 in July 2020 to 0.91 in July 2024. This suggests that the company may be facing challenges in meeting its short-term obligations with its current assets.
A current ratio below 1.0 typically indicates that a company may have trouble meeting its short-term liabilities with its current assets alone, which raises concerns about potential liquidity issues. Therefore, Cisco Systems Inc may need to closely monitor its liquidity position and consider implementing strategies to improve its current ratio to ensure its ability to meet its short-term financial obligations.
Peer comparison
Jul 27, 2024