Cisco Systems Inc (CSCO)

Financial leverage 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
Total assets	US$ in thousands	124,413,000	122,998,000	101,174,000	98,782,000	101,852,000	97,529,000	95,840,000	93,054,000	94,002,000	92,797,000	94,262,000	95,981,000	97,497,000	93,896,000	95,601,000	95,003,000	94,853,000	91,394,000	90,426,000	92,492,000
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
Financial leverage ratio		2.74	2.69	2.19	2.18	2.30	2.31	2.31	2.31	2.36	2.30	2.39	2.25	2.36	2.34	2.44	2.49	2.50	2.56	2.54	2.69

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 shown some fluctuations over the past few years. The ratio has ranged from 2.19 to 2.74 during the period from October 26, 2019, to July 27, 2024.

Overall, the trend in the financial leverage ratio indicates a varying level of financial leverage during the period under review. It highlights the company's utilization of debt financing relative to its equity to support its operations and investments.

The highest financial leverage ratio recorded was 2.74 in July 27, 2024, suggesting a higher reliance on debt financing compared to equity in that period. Conversely, the lowest ratio of 2.19 in January 25, 2020, indicates a relatively lower proportion of debt in the company's capital structure during that time.

The fluctuations in the financial leverage ratio may reflect changes in the company's capital structure and financing decisions over time. It is important for investors and analysts to monitor these changes closely to assess the company's risk profile and financial health.