Cisco Systems Inc (CSCO)

Current 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
Total current assets	US$ in thousands	34,681,000	35,752,000	36,862,000	36,862,000	31,986,000	35,886,000	39,127,000	42,127,000	39,659,000	39,659,000	43,348,000	43,348,000	39,950,000	39,950,000	38,515,000	38,515,000	36,141,000	36,141,000	36,717,000	36,717,000
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
Current ratio		0.87	0.88	0.91	0.91	0.80	0.89	1.27	1.37	1.47	1.47	1.38	1.38	1.39	1.39	1.41	1.41	1.45	1.45	1.43	1.43

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $34,681,000K ÷ $40,019,000K
= 0.87

The current ratio of Cisco Systems Inc has shown a downward trend over the last few years, starting at 1.43 in July 2022 and reaching a low of 0.80 in April 2024. The ratio indicates the company's ability to cover its short-term liabilities with its current assets. In the most recent period, January 31, 2025, the current ratio stood at 0.87, which suggests a potential liquidity concern as current assets may not be sufficient to cover current liabilities. Cisco may need to carefully manage its liquidity position to ensure it can meet its short-term obligations in a timely manner. Further analysis of the company's liquidity and working capital management practices may be necessary to address this issue.