Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cisco Systems Inc., liquidity ratios
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cisco Systems Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cisco Systems Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cisco Systems Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Current Ratio
Cisco Systems Inc., current ratio calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 43,348) | 36,717) | 39,112) | 43,573) | 47,755) | 61,837) | |
| Current liabilities | 31,309) | 25,640) | 26,257) | 25,331) | 31,712) | 27,035) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.38 | 1.43 | 1.49 | 1.72 | 1.51 | 2.29 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Apple Inc. | 0.99 | 0.88 | 1.07 | 1.36 | 1.54 | 1.12 | |
| Arista Networks Inc. | 4.39 | 4.29 | 4.34 | 4.99 | 5.81 | — | |
| Super Micro Computer Inc. | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 | 1.89 | |
| Current Ratio, Sector | |||||||
| Technology Hardware & Equipment | 1.10 | 0.99 | 1.17 | 1.46 | 1.55 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | — | |
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 43,348 ÷ 31,309 = 1.38
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cisco Systems Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Cisco Systems Inc., quick ratio calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 10,123) | 7,079) | 9,175) | 11,809) | 11,750) | 8,934) | |
| Investments | 16,023) | 12,188) | 15,343) | 17,610) | 21,663) | 37,614) | |
| Accounts receivable, net of allowance | 5,854) | 6,622) | 5,766) | 5,472) | 5,491) | 5,554) | |
| Financing receivables, net | 3,352) | 3,905) | 4,380) | 5,051) | 5,095) | 4,949) | |
| Total quick assets | 35,352) | 29,794) | 34,664) | 39,942) | 43,999) | 57,051) | |
| Current liabilities | 31,309) | 25,640) | 26,257) | 25,331) | 31,712) | 27,035) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.13 | 1.16 | 1.32 | 1.58 | 1.39 | 2.11 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Apple Inc. | 0.84 | 0.71 | 0.91 | 1.22 | 1.38 | 0.99 | |
| Arista Networks Inc. | 3.16 | 3.05 | 3.54 | 4.25 | 5.22 | — | |
| Super Micro Computer Inc. | 1.16 | 0.75 | 0.72 | 0.87 | 1.06 | 0.70 | |
| Quick Ratio, Sector | |||||||
| Technology Hardware & Equipment | 0.92 | 0.79 | 1.00 | 1.30 | 1.40 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | — | |
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 35,352 ÷ 31,309 = 1.13
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cisco Systems Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Cisco Systems Inc., cash ratio calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 10,123) | 7,079) | 9,175) | 11,809) | 11,750) | 8,934) | |
| Investments | 16,023) | 12,188) | 15,343) | 17,610) | 21,663) | 37,614) | |
| Total cash assets | 26,146) | 19,267) | 24,518) | 29,419) | 33,413) | 46,548) | |
| Current liabilities | 31,309) | 25,640) | 26,257) | 25,331) | 31,712) | 27,035) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.84 | 0.75 | 0.93 | 1.16 | 1.05 | 1.72 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Apple Inc. | 0.42 | 0.31 | 0.50 | 0.86 | 0.95 | 0.57 | |
| Arista Networks Inc. | 2.62 | 2.34 | 3.07 | 3.74 | 4.56 | — | |
| Super Micro Computer Inc. | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 | 0.14 | |
| Cash Ratio, Sector | |||||||
| Technology Hardware & Equipment | 0.52 | 0.39 | 0.59 | 0.93 | 0.99 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | — | |
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 26,146 ÷ 31,309 = 0.84
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cisco Systems Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |