Cisco Systems Inc (CSCO)

Debt-to-capital ratio

		Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Long-term debt	US$ in thousands	19,621,000	6,658,000	8,416,000	9,018,000	11,578,000
Total stockholders’ equity	US$ in thousands	45,457,000	44,353,000	39,773,000	41,275,000	37,920,000
Debt-to-capital ratio		0.30	0.13	0.17	0.18	0.23

July 27, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $19,621,000K ÷ ($19,621,000K + $45,457,000K)
= 0.30

The debt-to-capital ratio of Cisco Systems Inc has exhibited fluctuations over the past five years. In July 2024, the ratio stood at 0.30, indicating that 30% of the company's capital structure was funded by debt. This represents an increase compared to the previous year where the ratio was 0.13.

The surge in the debt-to-capital ratio from 2023 to 2024 suggests that Cisco may have taken on more debt relative to its total capital. This could imply increased leverage and potential financial risk. However, it is essential to consider the reasons behind this shift in the ratio, such as strategic acquisitions, capital expenditures, or changes in financing strategies.

Comparing the current ratio with earlier years, the debt-to-capital position in 2024 appears relatively higher than levels seen in 2022 (0.17), 2021 (0.18), and 2020 (0.23). This upward trend warrants monitoring and further analysis to understand the implications for Cisco's financial health and stability.