Cisco Systems (MEX:CSCO) Effective Interest Rate on Debt %: 4.94% (As of Apr. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:CSCO Cisco Systems Inc MEX:CSCO
67 GF Score
Price MXN2,090.65
GF Value MXN1,166.67
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Cisco Systems Effective Interest Rate on Debt %?

Cisco Systems MEX:CSCO +0.66% 67 Effective Interest Rate on Debt % is 4.94% as of Apr. 2026. GuruFocus rates MEX:CSCO with a GF Score™ of 67/100 and a GF Value™ of MXN1,166.67 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Cisco Systems's annualized positive value of Interest Expense for the quarter that ended in Apr. 2026 was MXN26,414 Mil. Cisco Systems's average total debt for the quarter that ended in Apr. 2026 was MXN535,139 Mil. Therefore, Cisco Systems's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 was 4.94%.


Cisco Systems  (MEX:CSCO) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Cisco Systems Effective Interest Rate on Debt % Related Terms


Cisco Systems Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Cisco Systems's Effective Interest Rate on Debt % 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.

Cisco Systems Effective Interest Rate on Debt % Chart

Cisco Systems Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.12 3.47 4.27 5.22 5.42

Cisco Systems Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Effective Interest Rate on Debt % Get a 7-Day Free Trial 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 5.20 5.02 4.95 4.92 4.94

MEX:CSCO vs CIEN, MSI, LITE: Effective Interest Rate on Debt % Comparison

For the Communication Equipment subindustry, Cisco Systems's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Hardware Industry

For the Hardware industry and Technology sector, Cisco Systems's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Effective Interest Rate on Debt % falls into.


MEX:CSCO
67GF Score
Cisco Systems Inc MEX:CSCO
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cisco Systems Effective Interest Rate on Debt % Calculation

Cisco Systems's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jul. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jul. 2024 )+Total Debt  (A: Jul. 2025 ))/ count )
=-1  *  -29943.621/( (576020.368+528064.121)/ 2 )
=-1  *  -29943.621/552042.2445
=5.42 %

where

Total Debt  (A: Jul. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=365106.12 + 210914.248
=576020.368

Total Debt  (A: Jul. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=429718.217 + 98345.904
=528064.121

Cisco Systems's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jan. 2026 )+Total Debt  (Q: Apr. 2026 ))/ count )
=-1  *  -26414.28/( (521971.04+548306.478)/ 2 )
=-1  *  -26414.28/535138.759
=4.94 %

where

Total Debt  (Q: Jan. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=370702.493 + 151268.547
=521971.04

Total Debt  (Q: Apr. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=339304.373 + 209002.105
=548306.478

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Apr. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.94% mean?
Cisco Systems (MEX:CSCO) has a Effective Interest Rate on Debt % of 4.94% as of Apr. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Cisco Systems and its competitors.
Is Cisco Systems' Effective Interest Rate on Debt % too high?
Cisco Systems' current Effective Interest Rate on Debt % is 4.94%. Overall, Cisco Systems has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Effective Interest Rate on Debt % compare to CIEN and MSI?
Cisco Systems' Effective Interest Rate on Debt % of 4.94% can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Hardware company?
A good Effective Interest Rate on Debt % depends on the Hardware industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Cisco Systems and its competitors. Cisco Systems's current Effective Interest Rate on Debt % is 4.94%. 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 MXN1,166.67, compared to a current price of MXN2,090.65 — trading 79.2% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.94%. Cisco Systems' overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Cisco Systems (MEX:CSCO), the current Effective Interest Rate on Debt % is 4.94% 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 MXN2,090.65 is trading 79.2% above its estimated GF Value™ of MXN1,166.67. GuruFocus considers Cisco Systems to be Significantly Overvalued.

Key valuation signals for MEX:CSCO:

  • Effective Interest Rate on Debt %: 4.94%
  • GF Value™: MXN1,166.67 vs. price of MXN2,090.65 (79.2% above fair value)
  • GF Score™: 67/100 with 9 warning signs

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 Business Description

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 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.
67GF Score

Get the complete analysis for MEX:CSCO

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,090.65
Price
MXN1,166.67
GF Value