Cisco Systems Inc (CSCO)

Current ratio

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Total current assets	US$ in thousands	35,341,000	36,862,000	36,862,000	43,348,000	43,348,000
Total current liabilities	US$ in thousands	35,064,000	40,584,000	40,584,000	31,309,000	31,309,000
Current ratio		1.01	0.91	0.91	1.38	1.38

July 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $35,341,000K ÷ $35,064,000K
= 1.01

The current ratio of Cisco Systems Inc. demonstrates notable fluctuation over the observed periods. As of July 29, and July 31, 2023, the current ratio stood at 1.38, indicating a satisfactory level of liquidity whereby the company's current assets sufficiently exceeded its current liabilities. This position suggests a relatively comfortable short-term liquidity buffer during this period.

However, by July 27 and July 31, 2024, the current ratio declined significantly to 0.91. This decrease reflects a reduced capacity to meet short-term obligations solely from current assets, indicating a potential liquidity concern or a shift in the company's balance sheet structure, which might require closer examination to understand underlying causes such as changes in current asset levels or current liabilities.

Moving forward to July 31, 2025, the current ratio improved to 1.01, signaling a rebound to a more balanced liquidity position. While not as strong as the ratios observed in 2023, this figure suggests that Cisco has regained a marginally adequate liquidity cushion, with current assets nearly equaling current liabilities.

In summary, the current ratio exhibits a downward trend during 2024, reaching below 1, which implies a period of potential liquidity stress, but subsequently shows signs of recovery by mid-2025. This pattern emphasizes the importance of ongoing liquidity management and highlights the need to monitor the company's ability to cover short-term obligations in fluctuating financial conditions.