Cisco Systems Inc (CSCO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.16 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.13 | 0.16 | 0.16 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.13 | 0.13 | 0.13 | 0.14 | 0.16 | 0.16 | 0.17 | 0.17 | 0.19 | 0.17 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.24 | 0.29 | 0.30 |
| 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 |
| 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 |
Based on the solvency ratios of Cisco Systems Inc over the past few quarters, we can observe the following trends:
1. Debt-to-assets ratio has been relatively stable around 0.07 to 0.16, indicating that Cisco has maintained a conservative level of debt compared to its total assets.
2. Debt-to-capital ratio has also shown stability, ranging from 0.13 to 0.31, suggesting that Cisco's capital structure consists of a reasonable amount of debt relative to its total capital.
3. Debt-to-equity ratio has exhibited similar stability, staying within the range of 0.14 to 0.44, indicating that Cisco's equity financing has remained relatively consistent compared to its debt financing.
4. The financial leverage ratio has fluctuated slightly between 2.18 to 2.74, indicating that Cisco has managed its financial leverage effectively to support its operations.
Overall, Cisco Systems Inc's solvency ratios suggest that the company has maintained a solid financial position with a prudent approach to managing its debt levels relative to its assets, capital, and equity.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 12.97 | 21.47 | 36.55 | 38.18 | 36.87 | 35.87 | 37.17 | 39.53 | 41.21 | 41.54 | 38.79 | 35.64 | 31.56 | 29.20 | 27.76 | 25.98 | 24.88 | 22.44 | 20.36 | 18.58 |
Interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates that a company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratio of Cisco Systems Inc over the past several quarters, we observe a generally strong trend. The interest coverage ratio has consistently remained well above 10, indicating that the company has sufficient earnings to cover its interest expenses.
Looking closer at the data, we can see a steady increase in the interest coverage ratio over time, with some minor fluctuations. In the most recent quarter, the interest coverage ratio was 12.97, which is slightly lower than the previous quarter but still at a healthy level.
The gradual increase in the interest coverage ratio suggests that Cisco Systems Inc has been efficiently managing its debt and generating enough earnings to comfortably cover its interest payments. This trend indicates financial stability and the ability to withstand fluctuations in interest rates or operating conditions.
Overall, based on the interest coverage ratio analysis, Cisco Systems Inc appears to have a solid financial position with the ability to meet its interest obligations consistently.