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Cisco Systems (NAS:CSCO) Current Ratio

: 1.41 (As of Jan. 2023)
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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 Jan. 2023 was 1.41.

Cisco Systems has a current ratio of 1.41. It generally indicates good short-term financial strength.

The historical rank and industry rank for Cisco Systems's Current Ratio or its related term are showing as below:

CSCO' s Current Ratio Range Over the Past 10 Years
Min: 1.19   Med: 2.52   Max: 6.33
Current: 1.41

During the past 13 years, Cisco Systems's highest Current Ratio was 6.33. The lowest was 1.19. And the median was 2.52.

CSCO's Current Ratio is ranked worse than
73.88% of 2423 companies
in the Hardware industry
Industry Median: 1.98 vs CSCO: 1.41

Cisco Systems Current Ratio Historical Data

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.

* Premium members only.

Cisco Systems Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Current Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.29 1.51 1.72 1.49 1.43

Cisco Systems Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Current Ratio 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 1.42 1.49 1.43 1.45 1.41

Competitive 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 Distribution

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 in comparison to its industry or sector. The grey bar indicates the Current Ratio's extreme value range as defined by GuruFocus.



Cisco Systems Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Cisco Systems's Current Ratio for the fiscal year that ended in Jul. 2022

Current Ratio (A: Jul. 2022 )=Total Current Assets (A: Jul. 2022 )/Total Current Liabilities (A: Jul. 2022 )
=36717/25640
=1.43

Cisco Systems's Current Ratio for the quarter that ended in Jan. 2023 is calculated as

Current Ratio (Q: Jan. 2023 )=Total Current Assets (Q: Jan. 2023 )/Total Current Liabilities (Q: Jan. 2023 )
=38515/27252
=1.41

* 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  (NAS: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

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


Cisco Systems (NAS: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.
Executives
Sarah Rae Murphy director C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Jeffery S. Sharritts officer: EVP & Chief Cust & Prtnr Offcr 1200 ABERNATHY RD., NE, STE 1200, ATLANTA GA 30328
Deborah L Stahlkopf officer: EVP and Chief Legal Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Marianna Tessel director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
John D Harris director C/O FLEXTRONICS INTERNATIONAL USA, INC., 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Richard Scott Herren officer: EVP and CFO 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Wesley G Bush director 333 MAPLE AVENUE EAST, #3080, VIENNA VA 22180
Lisa T Su director C/O ADVANCED MICRO DEVICES, INC., 2485 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Carol B Tome director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Geraldine Elliott officer: EVP, Chief Sales & Mktg Offcr 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
Maria Martinez officer: EVP, Chief Customer Exp Offcr THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Mark Garrett director 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
Irving Tan officer: SVP, Operations and Digital 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
David Goeckeler officer: EVP, Networking and Security C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Brent L Saunders director 2000 GALLOPING HILL ROAD, C/O SCHERING PLOUGH CORP, KENILWORTH NJ 07033

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