Cisco Systems Inc (CSCO)
Financial leverage ratio
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 124,413,000 | 101,852,000 | 94,002,000 | 97,497,000 | 94,853,000 |
| Total stockholders’ equity | US$ in thousands | 45,457,000 | 44,353,000 | 39,773,000 | 41,275,000 | 37,920,000 |
| Financial leverage ratio | 2.74 | 2.30 | 2.36 | 2.36 | 2.50 |
July 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $124,413,000K ÷ $45,457,000K
= 2.74
The financial leverage ratio of Cisco Systems Inc has been fluctuating over the past five years. The ratio indicates that the company relies more on debt financing rather than equity to fund its operations and growth. The trend shows an increase in financial leverage from 2.36 in 2021 to 2.74 in 2024, suggesting a higher reliance on debt financing in recent years. It is important to monitor this ratio closely as high financial leverage can increase the company's financial risk and impact its ability to meet its debt obligations. Further analysis of the company's debt structure and financial health is recommended to understand the implications of the changing financial leverage ratio.
Peer comparison
Jul 27, 2024