Cisco Systems Inc (CSCO)

Debt-to-equity 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-equity ratio		0.43	0.15	0.21	0.22	0.31

July 27, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $19,621,000K ÷ $45,457,000K
= 0.43

The debt-to-equity ratio of Cisco Systems Inc has shown fluctuations over the past five years. In July 2024, the ratio increased to 0.43 from 0.15 in July 2023, indicating a higher level of debt relative to equity in the company's capital structure. This could suggest that Cisco has taken on more debt compared to the previous year.

Compared to July 2022 and July 2021, where the ratios were 0.21 and 0.22 respectively, the latest ratio of 0.43 in July 2024 shows a notable increase. This increase may indicate a shift towards a more leveraged financial position.

However, when comparing to July 2020 where the ratio was 0.31, the current ratio is lower, suggesting a reduction in the level of debt relative to equity over the past four years.

Overall, the trend in Cisco Systems Inc's debt-to-equity ratio indicates some variability in the company's capital structure over the years, with the latest ratio pointing towards a higher leverage position compared to the previous year but still relatively lower compared to two years ago. Further analysis and consideration of other financial metrics would provide a more comprehensive view of the company's financial health and performance.