Cisco Systems Inc (CSCO)
Liquidity ratios
| Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.91 | 0.89 | 1.37 | 1.47 | 1.38 | 1.39 | 1.41 | 1.45 | 1.43 | 1.49 | 1.42 | 1.62 | 1.49 | 1.53 | 1.61 | 1.59 | 1.72 | 1.59 | 1.81 | 1.70 |
| Quick ratio | 0.69 | 0.68 | 1.10 | 1.18 | 1.13 | 1.11 | 1.13 | 1.16 | 1.16 | 1.23 | 1.20 | 1.41 | 1.32 | 0.97 | 1.46 | 1.45 | 1.58 | 1.46 | 1.64 | 1.54 |
| Cash ratio | 0.44 | 0.47 | 0.83 | 0.87 | 0.84 | 0.81 | 0.81 | 0.79 | 0.75 | 0.83 | 0.81 | 1.00 | 0.93 | 0.97 | 1.12 | 1.11 | 1.16 | 1.10 | 1.23 | 1.14 |
Cisco Systems Inc's liquidity ratios have shown some fluctuations over the past several quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, in recent quarters, the current ratio has been trending downwards, suggesting a potential decrease in the company's short-term liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been above 1 for most quarters, indicating a strong ability to meet short-term obligations without relying on inventory. Like the current ratio, the quick ratio has shown a slight decline in recent periods, although it remains at levels that are generally considered acceptable.
The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has generally been below 1, indicating that Cisco may not hold sufficient cash to cover its short-term obligations. However, the cash ratio has also shown some variability, with periods of improvement followed by slight decreases.
Overall, while Cisco Systems Inc has maintained relatively healthy liquidity ratios over the quarters, there are some signs of decreasing liquidity in recent periods. It is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations effectively.
See also:
Additional liquidity measure
| Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 79.67 | 68.79 | 68.37 | 65.59 | 73.83 | 68.22 | 69.69 | 68.01 | 78.03 | 67.35 | 70.43 | 62.33 | 64.80 | -10.60 | 65.68 | 56.76 | 66.62 | 52.81 | 58.51 | 62.39 |
Cisco Systems Inc's cash conversion cycle measures the time duration it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. Over the analyzed period, the cash conversion cycle has shown fluctuations, ranging from a low of -10.60 days to a high of 79.67 days.
A positive cash conversion cycle, such as the one exhibited by Cisco Systems, indicates that the company takes some time to collect cash from customers after paying its suppliers and investing in inventory. A longer cash conversion cycle may signify inefficiencies in managing inventory, collecting receivables, or extending payables.
On average, the cash conversion cycle for Cisco Systems Inc has been around 65-70 days, with noticeable deviations in certain periods. The company should aim to reduce its cash conversion cycle to improve efficiency and liquidity. A negative cash conversion cycle, as observed in the past, could indicate effective management of working capital leading to quicker cash inflows than cash outflows.
The trend in the cash conversion cycle should be monitored closely as it can provide insights into the company's operational efficiency, liquidity management, and overall financial health. Cisco Systems Inc may consider implementing strategies to streamline its cash conversion cycle, which can contribute to improved cash flow management and profitability in the long term.