Cisco Systems Inc (CSCO)
Interest coverage
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 27, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,048,000 | 12,140,000 | 11,408,000 | 10,709,000 | 10,616,000 | 11,083,000 | 11,746,000 | 13,707,000 | 15,668,000 | 16,969,000 | 18,270,000 | 17,783,000 | 17,296,000 | 16,236,000 | 15,176,000 | 14,685,000 | 14,194,000 | 14,181,000 | 14,168,000 | 14,484,000 |
| Interest expense (ttm) | US$ in thousands | 1,593,000 | 1,643,000 | 1,658,000 | 1,611,000 | 1,550,000 | 1,252,000 | 954,000 | 708,000 | 462,000 | 453,000 | 444,000 | 442,000 | 440,000 | 436,000 | 432,000 | 423,000 | 414,000 | 400,000 | 386,000 | 376,000 |
| Interest coverage | 8.19 | 7.39 | 6.88 | 6.65 | 6.85 | 8.85 | 12.31 | 19.36 | 33.91 | 37.46 | 41.15 | 40.23 | 39.31 | 37.24 | 35.13 | 34.72 | 34.29 | 35.45 | 36.70 | 38.52 |
July 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,048,000K ÷ $1,593,000K
= 8.19
The analysis of Cisco Systems Inc's interest coverage ratios over the specified period reveals significant fluctuations, reflecting changes in earnings capacity relative to interest obligations. Throughout the period from October 2022 to July 2025, the interest coverage ratio initially remains high, indicating robust earnings relative to interest expenses. Specifically, the ratio peaks at 41.15 in October 2023 and maintains a generally elevated level above 34 up to October 2023, suggesting that Cisco had substantial earnings to comfortably meet its interest obligations during this timeframe.
However, starting from the end of April 2024, a notable decline in the ratio is observed, dropping sharply to 12.31 in April 2024 and further down to 6.65 by October 2024. This downward trend indicates a weakening in earnings relative to interest expenses, though the ratio still remains above a critical threshold often considered acceptable by investors and analysts, which commonly ranges around 3 to 4.
Moving into early 2025, the interest coverage ratio edges upward again, reaching approximately 8.19 by July 2025. This suggests a partial recovery in earnings ability relative to interest obligations, although the ratio remains significantly lower than its historical peak levels observed in late 2022 and 2023.
Overall, the data indicates that Cisco's interest coverage ratio was exceptionally strong until late 2023, with margins comfortably covering interest expenses. The subsequent decline beginning in 2024 signals potential pressures on earnings, which could be driven by various operational or market factors. Nonetheless, the ratios remaining above historical danger zones suggest that, as of the latest available data, Cisco's interest obligations remain within manageable levels, albeit with diminished earnings cushion compared to the prior years.
Peer comparison
Jul 31, 2025