Cisco Systems (NAS:CSCO) Altman Z-Score

: 3.47 (As of Today)

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Good Sign:

Altman Z-score of 3.47 is strong.

Cisco Systems has a Altman Z-Score of 3.47, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Cisco Systems's Altman Z-Score or its related term are showing as below:

CSCO' s Altman Z-Score Range Over the Past 10 Years
Min: 2.65 Med: 6.52 Max: 50.14
Current: 3.47

During the past 13 years, Cisco Systems's highest Altman Z-Score was 50.14. The lowest was 2.65. And the median was 6.52.

Cisco Systems Altman Z-Score Historical Data

The historical data trend for Cisco Systems's Altman Z-Score 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

Altman Z-Score

3.06

3.36

3.32

3.62

3.25

Cisco Systems Quarterly Data
	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23
Altman Z-Score																3.71	3.56	3.25	3.34	3.39

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.

Annual Data Quarterly Data

Cisco Systems Altman Z-Score Distribution

For the Hardware industry and Technology sector, Cisco Systems's Altman Z-Score distribution charts can be found below:

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

Cisco Systems Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Cisco Systems's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.1175

1.4

-0.0038

3.3

0.1513

0.6

3.8053

1.0

0.5547

3.47

Trailing Twelve Months (TTM) ended in Jan. 2023:
Total Assets was $95,840 Mil.
Total Current Assets was $38,515 Mil.
Total Current Liabilities was $27,252 Mil.
Retained Earnings was $-364 Mil.
Pre-Tax Income was 3415 + 3475 + 3416 + 3801 = $14,107 Mil.
Interest Expense was -107 + -100 + -93 + -90 = $-390 Mil.
Revenue was 13592 + 13632 + 13102 + 12835 = $53,161 Mil.
Market Cap (Today) was $206,880 Mil.
Total Liabilities was $54,366 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(38515 - 27252)	/	95840
	=	0.1175

X2	=	Retained Earnings	/	Total Assets
	=	-364	/	95840
	=	-0.0038

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(14107 - -390)	/	95840
	=	0.1513

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	206880.036	/	54366
	=	3.8053

X5	=	Revenue	/	Total Assets
	=	53161	/	95840
	=	0.5547

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Cisco Systems has a Altman Z-Score of 3.47 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Cisco Systems (NAS:CSCO) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Be Aware

Altman Z-Score does not apply to financial companies.

Cisco Systems Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Cisco Systems's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Cisco Systems (NAS:CSCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Cisco Systems Inc (NAS:CSCO) » Definitions » Altman Z-Score

Traded in Other Exchanges

CSCO:Mexico 0R0K:UK CIS:Germany CSCO:Canada CSCO34:Brazil CIS:Belgium CSCO:Austria CSCO:Argentina

Address

170 West Tasman Drive, San Jose, CA, USA, 95134-1706

Website

https://www.cisco.com

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