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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Cisco Systems's Debt-to-Equity or its related term are showing as below:
XSWX:CSCO'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.17 Med: 0.52 Max: 0.76
Current: 0.64
During the past 13 years, the highest Debt-to-Equity Ratio of Cisco Systems was 0.76. The lowest was 0.17. And the median was 0.52.
XSWX:CSCO's Debt-to-Equity is ranked worse than 74.76% of 2215
companies
in the Hardware industry
Industry Median: 0.27
vs XSWX:CSCO: 0.64
Cisco Systems (XSWX:CSCO) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Cisco Systems Debt-to-Equity Related Terms
Cisco Systems Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Debt-to-Equity 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: Debt-to-Equity Comparison
For the Communication Equipment subindustry, Cisco Systems's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Debt-to-Equity 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 Debt-to-Equity of 0.64 as of Apr. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cisco Systems and its competitors. This is 23% above median its historical median of 0.52. Over the past decade, Cisco Systems' Debt-to-Equity has ranged from 0.17 to 0.76. According to the industry distribution chart, Cisco Systems ranks #1656 out of 2215 companies in the Hardware industry, placing it in the top 74.8%.
Is Cisco Systems' Debt-to-Equity too high?
Cisco Systems' current Debt-to-Equity of 0.64 is 23% above median its 10-year median of 0.52. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.76. The Hardware industry median Debt-to-Equity is 0.27. Cisco Systems' value of 0.64 is 137% above this industry median. Based on the distribution chart, Cisco Systems ranks #1656 out of 2215 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' Debt-to-Equity compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #1656 out of 2215 companies for Debt-to-Equity. This places Cisco Systems in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Cisco Systems' value of 0.64 is 137% above this benchmark. Historically, Cisco Systems' own Debt-to-Equity has ranged from 0.17 to 0.76 over the past decade. While the company's 10-year median is 0.52 vs. the industry median of 0.27, Cisco Systems has consistently been above 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 Debt-to-Equity for a Hardware company?
The median Debt-to-Equity among Hardware companies is 0.27, based on 2,215 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Debt-to-Equity of 0.64 is 137% above 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Debt-to-Equity is 0.64, which is 23% above median its own 10-year median of 0.52. 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?
Cisco Systems (XSWX:CSCO) has a current Debt-to-Equity of 0.64. The stock's GF Value™ is CHF56.55, compared to a current price of CHF96.29 — trading 70.3% above its estimated fair value. The current Debt-to-Equity is 0.64, which is 23% above median its 10-year median of 0.52 and 137% above the Hardware industry median of 0.27. 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 Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Debt-to-Equity is 0.64 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 CHF96.29 is trading 70.3% above its estimated GF Value™ of CHF56.55.
Key valuation signals for XSWX:CSCO:
Debt-to-Equity: 0.64 (23% above median its 10-year median of 0.52)
GF Value™: CHF56.55 vs. price of CHF96.29 (70.3% above fair value)
Industry Position: 137% above the Hardware median (#1656 of 2215)
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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