Cisco Systems (XSGO:CSCO) Inventory Turnover : 1.40 (As of Jan. 2024)

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What is Cisco Systems Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Cisco Systems's Cost of Goods Sold for the three months ended in Jan. 2024 was $4,574 Mil. Cisco Systems's Average Total Inventories for the quarter that ended in Jan. 2024 was $3,276 Mil. Cisco Systems's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cisco Systems's Days Inventory for the three months ended in Jan. 2024 was 65.35.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Cisco Systems's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.26.

Cisco Systems Inventory Turnover Historical Data

The historical data trend for Cisco Systems's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Cisco Systems Inventory Turnover Chart

Cisco Systems Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Inventory Turnover

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11.92

13.22

12.62

9.36

6.84

Cisco Systems Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Inventory Turnover	Get a 7-Day Free Trial															1.78	1.61	1.53	1.46	1.40

Cisco Systems Inventory Turnover Calculation

Cisco Systems's Inventory Turnover for the fiscal year that ended in Jul. 2023 is calculated as

	Inventory Turnover (A: Jul. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jul. 2023 )	/ (	(Total Inventories (A: Jul. 2022 )	+	Total Inventories (A: Jul. 2023 ))	/	count )
=	21245	/ (	(2568	+	3644)	/	2 )
=	21245	/	3106
=	6.84

Cisco Systems's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	4574	/ (	(3342	+	3209)	/	2 )
=	4574	/	3275.5
=	1.40

Cisco Systems (XSGO:CSCO) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Cisco Systems's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	3275.5	/	4574	*	365 / 4
	=	65.35

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Cisco Systems's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	3275.5	/	12791
	=	0.26

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Cisco Systems Inventory Turnover Related Terms

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Cisco Systems (XSGO:CSCO) Business Description

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Website

https://www.cisco.com

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.