Cisco Systems Inc (CSCO)

Debt-to-equity ratio

		Jul 27, 2024	Apr 27, 2024	Jan 27, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 23, 2021	Oct 24, 2020	Jul 25, 2020	Apr 25, 2020	Jan 25, 2020	Oct 26, 2019
Long-term debt	US$ in thousands	19,621,000	20,102,000	6,669,000	6,660,000	6,658,000	6,663,000	7,637,000	7,629,000	8,416,000	8,418,000	8,969,000	8,996,000	9,018,000	9,532,000	9,554,000	9,564,000	11,578,000	11,578,000	14,494,000	14,497,000
Total stockholders’ equity	US$ in thousands	45,457,000	45,768,000	46,251,000	45,210,000	44,353,000	42,295,000	41,474,000	40,272,000	39,773,000	40,400,000	39,496,000	42,701,000	41,275,000	40,205,000	39,121,000	38,157,000	37,920,000	35,708,000	35,533,000	34,423,000
Debt-to-equity ratio		0.43	0.44	0.14	0.15	0.15	0.16	0.18	0.19	0.21	0.21	0.23	0.21	0.22	0.24	0.24	0.25	0.31	0.32	0.41	0.42

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 a fluctuating trend over the past few years. The ratio has ranged from a low of 0.14 to a high of 0.44, with the most recent value being 0.43 as of July 27, 2024. This indicates that for every dollar of equity, the company has $0.43 of debt.

It is noteworthy that the ratio has been relatively stable around the 0.2 range for the past few years, with occasional fluctuations. A lower debt-to-equity ratio suggests that the company is relying more on equity financing rather than debt to fund its operations and growth, which can be viewed positively by investors and creditors as it signifies a lower financial risk.

Overall, Cisco Systems Inc's debt-to-equity ratio indicates a moderate level of leverage, and investors may consider this ratio along with other financial metrics to assess the company's financial health and risk profile.