Cisco Systems Inc (CSCO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 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 |
| Financial leverage ratio | 2.60 | 2.61 | 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 |
The solvency ratios of Cisco Systems Inc., as presented over multiple periods, reveal a consistent pattern characterized by low levels of leverage and debt relative to assets and capital, indicating a conservative financial policy.
Debt-to-assets ratio: The proportion of Cisco’s total assets financed through debt has remained predominantly minimal, with values oscillating around 0.00 to 0.08 until April 2024, when a notable increase to 0.16 occurs in the first quarter of 2024. Subsequent periods post-April 2024 revert to 0.00, suggesting a temporary uptick in leverage during that period, potentially due to specific financing decisions or particular accounting treatments. Overall, the company maintains a very low asset-level debt burden, underscoring its asset-driven security of solvency.
Debt-to-capital ratio: The ratio indicates the proportion of debt in the company's total capital structure. It remains low, generally near 0.13 to 0.16, with a marked spike to 0.31 in April 2024, and slightly higher figures (around 0.30) in subsequent periods. This spike suggests a momentary increase in the company’s reliance on debt relative to its capital. However, the ratio quickly stabilizes back to lower levels, reflecting a strong preference for equity or internal funding over debt financing.
Debt-to-equity ratio: Significantly low across most periods, the ratio fluctuates mainly between 0.14 and 0.19, aligning with a conservative leverage stance. A pronounced increase to 0.44 in April 2024 highlights a singular period where debt levels gained relative prominence compared to equity. The ratios indicate a primarily equity-backed capital structure, with the temporary rise in April 2024 possibly corresponding to strategic debt issuance or refinancing activities.
Financial leverage ratio: The ratio remains relatively stable, primarily around 2.31, during most of the analyzed periods, indicating that Cisco typically employs roughly twice its equity in assets via debt and other liabilities. A decline to approximately 2.18 in late 2023 suggests a slight reduction in leverage, potentially due to deleveraging or asset growth outpacing debt increases. The ratio climbs again past 2.60 in 2024, matching the periods of higher debt utilization, peaking at approximately 2.74 in mid-2024, reinforcing the temporary escalation in leverage during that period.
In summary, Cisco Systems Inc. exhibits a conservative and stable solvency profile characterized by low debt ratios, modest financial leverage, and a predominantly equity-financed structure. Temporary increases in debt levels observed in 2024 point to strategic or operational factors but are counterbalanced by a general preference for low leverage, emphasizing financial resilience and risk mitigation.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratios for Cisco Systems Inc. over the period from October 2022 through July 2025 indicate substantial variability. Initially, the ratio was notably high, beginning at approximately 38.52 in October 2022 and remaining above 35 through early 2023, signaling a strong ability to meet interest obligations relative to earnings before interest and taxes (EBIT). This elevated level persisted into mid-2023, with ratios reaching up to approximately 41.15 by October 2023.
However, beginning in late 2023 and into 2024, a marked decline is observed. The ratio drops sharply from around 40.23 in October 2023 to approximately 19.36 by April 2024. This downward trend continues, reaching a low of around 6.65 in October 2024. Subsequently, the interest coverage shows some signs of stabilization and modest recovery, rising again to approximately 8.19 by mid-2025.
Overall, the data reflects a significant decrease in Cisco's capacity to cover interest expenses from the high levels sustained in 2022 and early 2023. The sharp decline from over 40 to below 7 suggests a potential deterioration in earnings or an increase in interest obligations relative to EBIT, which may warrant further investigation into the company’s earnings quality, debt levels, or both. Nonetheless, the ratios remain above 1, indicating that, at least on some of the most recent dates, Cisco is still generating sufficient EBIT to cover its interest expenses, albeit with a reduced margin of safety compared to earlier periods.