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Cisco Systems (XSGO:CSCO) Debt-to-EBITDA

: 0.56 (As of Jan. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Cisco Systems's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2023 was $1,250 Mil. Cisco Systems's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2023 was $7,637 Mil. Cisco Systems's annualized EBITDA for the quarter that ended in Jan. 2023 was $15,840 Mil. Cisco Systems's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2023 was 0.56.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Cisco Systems's Debt-to-EBITDA or its related term are showing as below:

XSGO:CSCO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.55   Med: 1.5   Max: 2.19
Current: 0.55

During the past 13 years, the highest Debt-to-EBITDA Ratio of Cisco Systems was 2.19. The lowest was 0.55. And the median was 1.50.

XSGO:CSCO's Debt-to-EBITDA is ranked better than
74.59% of 1783 companies
in the Hardware industry
Industry Median: 1.78 vs XSGO:CSCO: 0.55

Cisco Systems Debt-to-EBITDA Historical Data

The historical data trend for Cisco Systems's Debt-to-EBITDA 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
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.58 1.42 0.89 0.74 0.57

Cisco Systems Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Debt-to-EBITDA 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 0.68 0.54 0.60 0.56 0.56

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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-EBITDA Distribution

For the Hardware industry and Technology sector, Cisco Systems's Debt-to-EBITDA distribution charts can be found below:

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



Cisco Systems Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Cisco Systems's Debt-to-EBITDA for the fiscal year that ended in Jul. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1099 + 8416) / 16794
=0.57

Cisco Systems's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1250 + 7637) / 15840
=0.56

* 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 the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2023) EBITDA data.


Cisco Systems  (XSGO:CSCO) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Cisco Systems Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Debt-to-EBITDA 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

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