Cisco Systems Inc (CSCO)

Quick ratio

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Cash	US$ in thousands	8,346,000	7,508,000	7,508,000	10,123,000	10,123,000
Short-term investments	US$ in thousands	7,764,000	10,346,000	10,346,000	16,023,000	16,023,000
Receivables	US$ in thousands	9,762,000	10,023,000	10,023,000	9,206,000	9,252,000
Total current liabilities	US$ in thousands	35,064,000	40,584,000	40,584,000	31,309,000	31,309,000
Quick ratio		0.74	0.69	0.69	1.13	1.13

July 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,346,000K + $7,764,000K + $9,762,000K) ÷ $35,064,000K
= 0.74

The quick ratio of Cisco Systems Inc. exhibits notable fluctuations over the specified period. As of July 29 and July 31, 2023, the quick ratio stood at 1.13, indicating that the company's most liquid assets were sufficient to cover its current liabilities by a little more than one time. This ratio suggests a relatively strong liquidity position during this period, reflecting a prudent management of liquid assets relative to short-term obligations.

However, a significant decline is observed by July 27 and July 31, 2024, when the quick ratio decreases to 0.69. This decline implies a reduced liquidity buffer, indicating that liquid assets are now less than the company's current liabilities and highlighting potential concerns regarding immediate financial flexibility. The reduction could be attributable to changes in current asset composition, such as a decline in cash or receivables, or an increase in current liabilities.

By July 31, 2025, the quick ratio experiences a modest recovery to 0.74. Although this increase indicates some improvement in liquidity position, the ratio remains below the critical threshold of 1.0, suggesting the company may still face challenges in meeting short-term obligations without relying on inventory or other less liquid current assets.

Overall, the trend reflects a deterioration in short-term liquidity from 2023 to 2024, followed by a slight stabilization into 2025. The persistently below-one quick ratio signals a need for continued monitoring of liquidity management strategies to maintain sufficient liquid assets for operational flexibility and risk mitigation.