Cisco Systems Inc (CSCO)
Solvency ratios
| 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 | Jul 31, 2022 | Jul 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.16 | 0.00 | 0.16 | 0.00 | 0.07 | 0.00 | 0.07 | 0.00 | 0.07 | 0.00 | 0.07 | 0.00 | 0.08 | 0.00 | 0.08 | 0.00 | 0.09 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.30 | 0.00 | 0.31 | 0.00 | 0.13 | 0.00 | 0.13 | 0.00 | 0.13 | 0.00 | 0.14 | 0.00 | 0.16 | 0.00 | 0.16 | 0.00 | 0.17 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.43 | 0.00 | 0.44 | 0.00 | 0.14 | 0.00 | 0.15 | 0.00 | 0.15 | 0.00 | 0.16 | 0.00 | 0.18 | 0.00 | 0.19 | 0.00 | 0.21 |
| Financial leverage ratio | 2.67 | 2.72 | 2.74 | 2.74 | 2.69 | 2.69 | 2.19 | 2.19 | 2.18 | 2.18 | 2.30 | 2.30 | 2.31 | 2.31 | 2.31 | 2.31 | 2.31 | 2.31 | 2.36 | 2.36 |
The solvency ratios provide insights into Cisco Systems Inc's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Cisco's debt-to-assets ratio has generally been low, with values fluctuating between 0.00 and 0.16 over the analysis period. The decreasing trend indicates that the company relies less on debt to finance its assets, which is a positive indicator for solvency.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure funded by debt. Like the debt-to-assets ratio, Cisco's debt-to-capital ratio also demonstrates a decreasing trend over time, ranging between 0.00 and 0.31. The declining trend suggests a lower reliance on debt capital, enhancing the company's financial stability.
3. Debt-to-equity ratio: The debt-to-equity ratio shows how much of Cisco's operations are funded by debt relative to equity. The ratio has shown a decreasing trend from 0.00 to 0.44 over the period under consideration. This decrease indicates that the company is using less debt compared to equity, which is a favorable sign for solvency.
4. Financial leverage ratio: This ratio measures the extent to which the company relies on debt to finance its assets. Cisco's financial leverage ratio has fluctuated but generally remained above 2.00, reflecting moderate financial leverage. The decreasing trend observed in recent periods suggests that the company is becoming less leveraged over time, which can enhance its solvency position.
Overall, the solvency ratios present a positive picture of Cisco Systems Inc's financial health, showcasing a decreasing reliance on debt financing and improvements in long-term solvency.
Coverage ratios
| 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 | Jul 31, 2022 | Jul 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.88 | 6.65 | 6.85 | 8.71 | 12.13 | 18.94 | 33.27 | 37.19 | 40.87 | 40.16 | 39.23 | 37.16 | 35.05 | 34.72 | 34.29 | 35.45 | 36.70 | 38.52 | 39.56 | 40.62 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt obligations. A higher ratio indicates a stronger ability to cover interest expenses.
Analyzing the interest coverage ratios for Cisco Systems Inc over the specified periods shows a general trend of gradual decline. The ratio was notably high in July 2022 at 40.62, indicating a strong ability to cover interest payments. However, this ratio decreased over time, reaching a low of 6.65 in October 2024.
The decline in the interest coverage ratio may indicate potential concerns regarding Cisco's ability to comfortably cover its interest expenses. A consistently low ratio could raise questions about the company's financial health and its ability to manage debt obligations effectively.
It is important for investors and stakeholders to monitor Cisco's interest coverage ratio closely to assess the company's ability to meet its financial obligations and sustain profitability in the long term.