GURUFOCUS.COM » STOCK LIST » Latin America » Chile » XSGO » Cisco Systems Inc (XSGO:CSCO) » Definitions » Net-Net Working Capital
Switch to:

Cisco Systems (XSGO:CSCO) Net-Net Working Capital

: $-6.44 (As of Apr. 2023)
View and export this data going back to . Start your Free Trial

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Cisco Systems's Net-Net Working Capital for the quarter that ended in Apr. 2023 was $-6.44.

The industry rank for Cisco Systems's Net-Net Working Capital or its related term are showing as below:

XSGO:CSCO's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 6.89
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Cisco Systems Net-Net Working Capital Historical Data

The historical data trend for Cisco Systems's Net-Net Working Capital 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.

* Premium members only.

Cisco Systems Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Net-Net Working Capital
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.02 -6.12 -5.37 -6.31 -6.99

Cisco Systems Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Net-Net Working Capital Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.47 -6.99 -6.72 -6.55 -6.44

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's Net-Net Working Capital, along with its competitors' market caps and Net-Net Working Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cisco Systems Net-Net Working Capital Distribution

For the Hardware industry and Technology sector, Cisco Systems's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Net-Net Working Capital falls in comparison to its industry or sector. The grey bar indicates the Net-Net Working Capital's extreme value range as defined by GuruFocus.



Cisco Systems Net-Net Working Capital Calculation

Cisco Systems's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jul. 2022 is calculated as

Net-Net Working Capital(A: Jul. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(19267+0.75 * 6622+0.5 * 2568-54229
-0-0)/4110
=-6.99

Cisco Systems's Net-Net Working Capital (NNWC) per share for the quarter that ended in Apr. 2023 is calculated as

Net-Net Working Capital(Q: Apr. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(23288+0.75 * 5104+0.5 * 3474-55234
-0-0)/4095.82
=-6.44

* 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.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Cisco Systems  (XSGO:CSCO) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Cisco Systems Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Cisco Systems (XSGO:CSCO) Business Description

Cisco Systems logo
Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
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.

Cisco Systems (XSGO:CSCO) Headlines

Other Sources