Cisco Systems Inc (CSCO)

Current ratio

		Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023	Jul 31, 2022
Total current assets	US$ in thousands	36,862,000	36,862,000	43,348,000	43,348,000	36,717,000
Total current liabilities	US$ in thousands	40,584,000	40,584,000	31,309,000	31,309,000	25,640,000
Current ratio		0.91	0.91	1.38	1.38	1.43

July 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $36,862,000K ÷ $40,584,000K
= 0.91

The current ratio for Cisco Systems Inc has been fluctuating over the past few years. As of July 31, 2022, the current ratio was at 1.43, indicating that the company had $1.43 in current assets for every $1 in current liabilities. However, there was a slight decline in the current ratio to 1.38 by July 31, 2023, suggesting a slight decrease in liquidity.

This ratio remained stable at 1.38 as of July 31, 2023. However, there was a notable drop in the current ratio to 0.91 by July 27, 2024, and this ratio remained the same by July 31, 2024. A current ratio of less than 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone.

Overall, the trend in the current ratio for Cisco Systems Inc shows some fluctuations, particularly a significant decrease in 2024, which may indicate a potential strain on the company's liquidity and ability to cover its short-term liabilities effectively. Management should closely monitor this ratio to ensure financial stability and efficiency in managing working capital.