Cisco Systems Inc (CSCO)
Solvency ratios
| Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.16 | 0.00 | 0.07 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.30 | 0.00 | 0.13 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.43 | 0.00 | 0.15 | 0.00 |
| Financial leverage ratio | 2.74 | 2.74 | 2.30 | 2.30 | 2.36 |
Based on the provided solvency ratios for Cisco Systems Inc:
1. Debt-to-assets ratio: The company shows a consistent low level of indebtedness relative to its total assets, with ratios ranging from 0.00 to 0.16 over the period analyzed.
2. Debt-to-capital ratio: Cisco's debt-to-capital ratio varies over time, with lower ratios signifying lower reliance on borrowed capital. The ratios range from 0.00 to 0.30 during the period.
3. Debt-to-equity ratio: The debt-to-equity ratio indicates the proportion of debt financing relative to equity. Cisco has maintained relatively low levels of debt compared to equity, with ratios ranging from 0.00 to 0.43.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which the company relies on debt financing. Cisco's financial leverage ratio has shown consistency, ranging from 2.30 to 2.74 during the period assessed.
Overall, Cisco Systems Inc appears to have a solid solvency position, with low levels of debt relative to assets, capital, and equity. The financial leverage ratios suggest a moderate degree of leverage, which may indicate a balanced approach to capital structure management.
Coverage ratios
| Jul 31, 2024 | Jul 27, 2024 | Jul 31, 2023 | Jul 29, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 13.16 | 12.11 | 36.87 | 36.87 | 41.21 |
Based on the data provided, the interest coverage ratio of Cisco Systems Inc has demonstrated a generally healthy trend over the specified periods. The interest coverage ratio measures the company's ability to meet its interest expenses with its operating income.
As of July 31, 2022, the company had an interest coverage ratio of 41.21, indicating that Cisco's operating income was 41.21 times greater than its interest expenses. This high ratio suggests that the company had a significant cushion to cover its interest payments.
For the subsequent periods, the interest coverage ratio remained relatively strong, with values of 36.87 for July 29, 2023, and July 31, 2023, respectively. These ratios suggest that Cisco continued to generate ample operating income to cover its interest obligations comfortably.
However, there was a notable decrease in the interest coverage ratio for the periods ending July 27, 2024 (12.11) and July 31, 2024 (13.16). These lower ratios may indicate a potential increase in the company's interest expenses relative to its operating income during these periods, which could warrant further investigation.
Overall, the analysis of Cisco Systems Inc's interest coverage ratios indicates a historically strong ability to meet interest payments with operating income, although the recent declines suggest a need for attention to ensure continued financial stability.