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Cisco Systems (NAS:CSCO) Interest Coverage

: 33.04 (As of Jan. 2023)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Cisco Systems's Operating Income for the three months ended in Jan. 2023 was $3,535 Mil. Cisco Systems's Interest Expense for the three months ended in Jan. 2023 was $-107 Mil. Cisco Systems's interest coverage for the quarter that ended in Jan. 2023 was 33.04. The higher the ratio, the stronger the company's financial strength is.

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

CSCO' s Interest Coverage Range Over the Past 10 Years
Min: 13.43   Med: 19.25   Max: 38.82
Current: 36.19


CSCO's Interest Coverage is ranked better than
64.98% of 1656 companies
in the Hardware industry
Industry Median: 17.51 vs CSCO: 36.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Cisco Systems Interest Coverage Historical Data

The historical data trend for Cisco Systems's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.43 16.93 24.10 31.61 38.82

Cisco Systems Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Interest Coverage 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 39.66 40.11 36.90 35.38 33.04

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Hardware industry and Technology sector, Cisco Systems's Interest Coverage distribution charts can be found below:

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



Cisco Systems Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cisco Systems's Interest Coverage for the fiscal year that ended in Jul. 2022 is calculated as

Here, for the fiscal year that ended in Jul. 2022, Cisco Systems's Interest Expense was $-360 Mil. Its Operating Income was $13,975 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,416 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2022 )/Interest Expense (A: Jul. 2022 )
=-1*13975/-360
=38.82

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

Here, for the three months ended in Jan. 2023, Cisco Systems's Interest Expense was $-107 Mil. Its Operating Income was $3,535 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,637 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2023 )/Interest Expense (Q: Jan. 2023 )
=-1*3535/-107
=33.04

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Cisco Systems  (NAS:CSCO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Cisco Systems Interest Coverage Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Interest Coverage 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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