The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Cisco Systems's quick ratio for the quarter that ended in Jan. 2023 was 1.30.
Cisco Systems has a quick ratio of 1.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for Cisco Systems's Quick Ratio or its related term are showing as below:
CSCO'
s Quick Ratio Range Over the Past 10 Years
Min: 1.05 Med: 2.34 Max: 6.05
Current: 1.3
During the past 13 years, Cisco Systems's highest Quick Ratio was 6.05. The lowest was 1.05. And the median was 2.34.
CSCO's Quick Ratio is ranked worse than 53.69% of 2423
companies
in the Hardware industry
Industry Median: 1.38
vs CSCO: 1.30
Cisco Systems Quick Ratio Historical Data
The historical data trend for Cisco Systems's Quick 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
Quick Ratio
2.22
1.46
1.67
1.43
1.33
Cisco Systems Quarterly Data
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Quick Ratio
1.34
1.40
1.33
1.34
1.30
Competitive Comparison
For the Communication Equipment subindustry, Cisco Systems's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution
For the Hardware industry and Technology sector, Cisco Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Quick Ratio falls in comparison to its industry or sector. The grey bar indicates the Quick Ratio's extreme value range as defined by GuruFocus.
Cisco Systems Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Cisco Systems's Quick Ratio for the fiscal year that ended in Jul. 2022 is calculated as
* 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) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Cisco Systems Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cisco Systems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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