Analysis of Inventory
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- Income Statement
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- Common-Size Income Statement
- Analysis of Geographic Areas
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Inventory Disclosure
Cisco Systems Inc., balance sheet: inventory
US$ in millions
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Raw materials | |||||||||||||
| Work in process | |||||||||||||
| Finished goods | |||||||||||||
| Service-related spares | |||||||||||||
| Demonstration systems | |||||||||||||
| Inventories |
Based on: 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 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).
The inventory data over the observed periods reveals notable fluctuations and trends across different categories. Overall, the total inventories increased significantly from US$1,282 million in July 2020 to a peak of US$3,644 million in July 2023, followed by a gradual decline to US$3,164 million by July 2025.
- Raw materials
- This category showed a strong upward trend between 2020 and 2024, rising from US$456 million to a high of US$2,039 million. However, in the final period, there was a decrease to US$1,744 million, indicating a potential adjustment or optimization in raw material stock levels after several years of growth.
- Work in process
- Work in process inventory exhibited considerable volatility. It rose sharply from US$25 million in 2020 to US$264 million in 2023, a more than tenfold increase, before declining to US$261 million in 2025. The spike in 2023 suggests increased production activity or delays in manufacturing processes that resulted in higher work-in-progress stock.
- Finished goods
- Finished goods inventory fluctuated notably, beginning at US$601 million in 2020, dipping to US$519 million in 2021, then rising sharply to US$1,493 million in 2023. Following the peak, it fell to US$933 million by 2025. This pattern may reflect variations in sales performance, production output, or inventory management strategies, with a significant buildup followed by reduction.
- Service-related spares
- Inventories of service-related spares remained relatively stable with minor fluctuations, starting at US$184 million in 2020, experiencing a drop to US$90 million in 2022, and rebounding gradually to US$220 million by 2025. This indicates a cautious approach to spare parts inventory, possibly influenced by maintenance service demands or supply chain considerations.
- Demonstration systems
- Demonstration systems maintained a consistently low level throughout the period, ranging from US$6 million to US$16 million, with a downward trend in recent years. Such minimal inventory levels suggest controlled deployment of demonstration equipment, likely aligned to marketing or customer engagement needs.
In summary, the inventory profile reflects an overall expansion in holdings through mid-2023, particularly in raw materials and work in process, followed by a moderate reduction through 2025. The trends in finished goods suggest varying demand or supply conditions, while service-related spares and demonstration systems appear to be managed with more stability and control. These observations may warrant further investigation into production efficiency, supply chain management, and demand forecasting to optimize inventory levels going forward.