Cisco SystemsMEX:CSCO -0.61%73 Current Ratio is 0.92 as of Apr. 2026, which is 39% below its 10-year median of 1.52. GuruFocus rates MEX:CSCO with a GF Score™ of 73/100 and a GF Value™ of MXN1,243.17 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,492 Hardware companies, Cisco Systems ranks worse than 90.81% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Cisco Systems's current ratio for the quarter that ended in Apr. 2026 was 0.92.
Cisco Systems has a current ratio of 0.92. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Cisco Systems has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Cisco Systems's Current Ratio or its related term are showing as below:
MEX:CSCO'
s Current Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1.52 Max: 3.67
Current: 0.92
During the past 13 years, Cisco Systems's highest Current Ratio was 3.67. The lowest was 0.87. And the median was 1.52.
MEX:CSCO's Current Ratio is ranked worse than 90.81% of 2492
companies
in the Hardware industry
Industry Median: 1.96
vs MEX:CSCO: 0.92
Cisco Systems (MEX:CSCO) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Cisco Systems Current Ratio Related Terms
Cisco Systems Current Ratio Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Current 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.
MEX:CSCO vs CIEN, MSI, LITE: Current Ratio Comparison
For the Communication Equipment subindustry, Cisco Systems's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Current 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 (MEX:CSCO) has a Current Ratio of 0.92 as of Apr. 2026. This is 39% below median its historical median of 1.52. Over the past decade, Cisco Systems' Current Ratio has ranged from 0.87 to 3.67. According to the industry distribution chart, Cisco Systems ranks #2263 out of 2492 companies in the Hardware industry, placing it in the top 90.8%.
Is Cisco Systems' Current Ratio too high?
Cisco Systems' current Current Ratio of 0.92 is 39% below median its 10-year median of 1.52. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 3.67. The Hardware industry median Current Ratio is 1.96. Cisco Systems' value of 0.92 is 53.1% below this industry median. Based on the distribution chart, Cisco Systems ranks #2263 out of 2492 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Cisco Systems has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Current Ratio compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #2263 out of 2492 companies for Current Ratio. This places Cisco Systems in the lower half of its industry. The industry median Current Ratio is 1.96. Cisco Systems' value of 0.92 is 53.1% below this benchmark. Historically, Cisco Systems' own Current Ratio has ranged from 0.87 to 3.67 over the past decade. While the company's 10-year median is 1.52 vs. the industry median of 1.96, 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 Current Ratio for a Hardware company?
The median Current Ratio among Hardware companies is 1.96, based on 2,492 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Current Ratio of 0.92 is 53.1% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Current Ratio is 0.92, which is 39% below median its own 10-year median of 1.52. 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?
Based on GuruFocus' analysis, Cisco Systems (MEX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,243.17, compared to a current price of MXN2,070.79 — trading 66.6% above its estimated fair value. The current Current Ratio is 0.92, which is 39% below median its 10-year median of 1.52 and 53.1% below the Hardware industry median of 1.96. Cisco Systems' overall GF Score™ is 73/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Cisco Systems (MEX:CSCO), the current Current Ratio is 0.92 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 (MEX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of MXN2,070.79 is trading 66.6% above its estimated GF Value™ of MXN1,243.17.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for MEX:CSCO:
Current Ratio: 0.92 (39% below median its 10-year median of 1.52)
GF Value™: MXN1,243.17 vs. price of MXN2,070.79 (66.6% above fair value)
Industry Position: 53.1% below the Hardware median (#2263 of 2492)
No single metric tells the full story. See the MEX: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.
73GF Score
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