Cisco Systems Inc (CSCO)

Debt-to-capital ratio

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Long-term debt	US$ in thousands	—	—	19,621,000	—	6,658,000
Total stockholders’ equity	US$ in thousands	47,116,000	45,457,000	45,457,000	44,353,000	44,353,000
Debt-to-capital ratio		0.00	0.00	0.30	0.00	0.13

July 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $47,116,000K)
= 0.00

The provided data indicates the debt-to-capital ratio for Cisco Systems Inc. over multiple dates, revealing notable fluctuations in the company's leverage profile. On July 29, 2023, the ratio stood at 0.13, suggesting that approximately 13% of the company's total capital was financed through debt at that time. However, by July 31, 2023, the ratio dropped to 0.00, indicating a period where the company may have had negligible or no debt relative to its total capital or possibly a change in reporting conventions.

Subsequently, the ratio increased significantly to 0.30 on July 27, 2024, reflecting that nearly 30% of Cisco's capital structure was financed through debt. This increase suggests an uptick in leverage and potentially a strategic move to fund growth initiatives, acquisitions, or other capital projects via debt financing. Yet, the subsequent data points on July 31, 2024, and July 31, 2025, both register a ratio of 0.00, implying that Cisco maintained a debt-free capital structure during these periods or that the debt was effectively offset by other components of capital, such as equity, resulting in a negligible or zero debt-to-capital ratio.

Overall, the trend indicates periods of low or no debt, punctuated by a single notable increase to 0.30, followed by a return to zero. Such fluctuations may reflect strategic shifts in financing approaches, liquidity considerations, or accounting/reporting periods. The presence of zero readings in the most recent periods suggests that the company's leverage remains minimal, aligning with cautious financial management or specific capital structure preferences.