Cisco Systems Inc (CSCO)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,556,000 | 9,065,000 | 7,508,000 | 7,508,000 | 9,678,000 | 8,913,000 | 14,280,000 | 13,715,000 | 9,602,000 | 9,602,000 | 10,123,000 | 10,123,000 | 8,044,000 | 8,044,000 | 9,009,000 | 9,009,000 | 7,292,000 | 7,292,000 | 7,079,000 | 7,079,000 |
| Short-term investments | US$ in thousands | 8,297,000 | 9,606,000 | 10,346,000 | 10,346,000 | 9,857,000 | 9,857,000 | 11,956,000 | 11,956,000 | 13,921,000 | 13,921,000 | 16,023,000 | 16,023,000 | 15,244,000 | 15,244,000 | 13,052,000 | 13,052,000 | 12,492,000 | 12,492,000 | 12,188,000 | 12,188,000 |
| Receivables | US$ in thousands | — | — | — | 10,023,000 | — | 8,570,000 | — | 8,360,000 | — | 8,247,000 | — | 9,252,000 | — | 8,502,000 | — | 8,757,000 | — | 9,122,000 | — | 10,505,000 |
| 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 |
| Quick ratio | 0.42 | 0.46 | 0.44 | 0.69 | 0.49 | 0.68 | 0.85 | 1.10 | 0.87 | 1.18 | 0.84 | 1.13 | 0.81 | 1.11 | 0.81 | 1.13 | 0.79 | 1.16 | 0.75 | 1.16 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,556,000K
+ $8,297,000K
+ $—K)
÷ $40,019,000K
= 0.42
The quick ratio of Cisco Systems Inc has shown fluctuations over the period presented in the data. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has enough liquid assets to cover its current liabilities.
Looking at the data provided:
- The quick ratio was 1.16 as of July 30, 2022, which indicated a strong ability to meet short-term obligations.
- The quick ratio decreased to 0.75 by July 31, 2022, suggesting a potential liquidity strain.
- The ratio improved to 1.16 by October 29, 2022, showing a recovery in liquidity.
- However, by April 30, 2024, the quick ratio had dropped to 0.49, indicating a significant decrease in the company's ability to cover short-term liabilities with liquid assets.
The trend in the quick ratio reveals some instability in Cisco Systems Inc's short-term liquidity position. It is essential for the company to closely monitor its liquidity levels to ensure it can meet its financial obligations as they come due. Further analysis and context, such as industry benchmarks and company-specific circumstances, would provide a more comprehensive understanding of Cisco's liquidity management.
Peer comparison
Jan 31, 2025