Cisco Systems has a Cash Ratio of 0.42. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Cisco Systems's Cash Ratio or its related term are showing as below:
XSWX:CSCO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.42 Med: 0.99 Max: 3.16
Current: 0.42
During the past 13 years, Cisco Systems's highest Cash Ratio was 3.16. The lowest was 0.42. And the median was 0.99.
XSWX:CSCO's Cash Ratio is ranked worse than 62.97% of 2482
companies
in the Hardware industry
Industry Median: 0.64
vs XSWX:CSCO: 0.42
Cisco Systems (XSWX:CSCO) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Cisco Systems Cash Ratio Related Terms
Cisco Systems Cash Ratio Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Cash Ratio 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.
XSWX:CSCO vs CIEN, MSI, LITE: Cash Ratio Comparison
For the Communication Equipment subindustry, Cisco Systems's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Cash Ratio falls into.
* 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.
Cisco Systems (XSWX:CSCO) has a Cash Ratio of 0.42 as of Apr. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Cisco Systems and its competitors. This is 58% below median its historical median of 0.99. Over the past decade, Cisco Systems' Cash Ratio has ranged from 0.42 to 3.16. According to the industry distribution chart, Cisco Systems ranks #1563 out of 2482 companies in the Hardware industry, placing it in the top 63%.
Is Cisco Systems' Cash Ratio too high?
Cisco Systems' current Cash Ratio of 0.42 is 58% below median its 10-year median of 0.99. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 3.16. The Hardware industry median Cash Ratio is 0.64. Cisco Systems' value of 0.42 is 34.4% below this industry median. Based on the distribution chart, Cisco Systems ranks #1563 out of 2482 companies in the Hardware industry, which is below the industry midpoint. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Cash Ratio compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #1563 out of 2482 companies for Cash Ratio. This places Cisco Systems in the lower half of its industry. The industry median Cash Ratio is 0.64. Cisco Systems' value of 0.42 is 34.4% below this benchmark. Historically, Cisco Systems' own Cash Ratio has ranged from 0.42 to 3.16 over the past decade. While the company's 10-year median is 0.99 vs. the industry median of 0.64, Cisco Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Hardware company?
The median Cash Ratio among Hardware companies is 0.64, based on 2,482 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Cash Ratio of 0.42 is 34.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Cash Ratio is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Cash Ratio is 0.42, which is 58% below median its own 10-year median of 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Cisco Systems (XSWX:CSCO) has a current Cash Ratio of 0.42. The stock's GF Value™ is CHF54.68, compared to a current price of CHF96.59 — trading 76.6% above its estimated fair value. The current Cash Ratio is 0.42, which is 58% below median its 10-year median of 0.99 and 34.4% below the Hardware industry median of 0.64. Cisco Systems' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Cash Ratio is 0.42 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cisco Systems (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF96.59 is trading 76.6% above its estimated GF Value™ of CHF54.68.
Key valuation signals for XSWX:CSCO:
Cash Ratio: 0.42 (58% below median its 10-year median of 0.99)
GF Value™: CHF54.68 vs. price of CHF96.59 (76.6% above fair value)
Industry Position: 34.4% below the Hardware median (#1563 of 2482)
No single metric tells the full story. See the XSWX:CSCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 such as 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 employs 80,000 people and sells its products globally.
81GF Score
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