Cisco Systems Inc. (NASDAQ:CSCO)

The analysis of the financial composition over the periods from July 25, 2020, to July 26, 2025, reveals distinct trends in asset allocation and composition.

Cash and Cash Equivalents

The proportion of cash and cash equivalents relative to total assets shows a declining trend overall. Starting at 12.45% in 2020, it decreases to a low of 6.03% in 2024 before a slight increase to 6.82% in 2025, indicating a reduced allocation to highly liquid assets over time.

Investments

Investments as a percentage of total assets decline markedly across the periods examined, from 18.57% in 2020 to 6.35% in 2025. This steady reduction suggests a strategic shift away from investment holdings.

Accounts Receivable, Net of Allowance

Accounts receivable as a portion of total assets remains relatively stable, with minor fluctuations. It reaches a peak of 7.04% in 2022 before falling back to around 5.4-5.5% in later years, indicating consistent credit management relative to asset size.

Inventories

Inventory levels increase notably from 1.35% in 2020 to 3.58% in 2023, then slightly decrease in subsequent years to approximately 2.6%. This points to an accumulation in stock levels followed by a moderate reduction.

Financing Receivables, Net

Financing receivables show a persistent downward trend, diminishing from 5.33% in 2020 to 2.5% in 2025. This trend is consistent in both current and long-term financing receivables, reflecting a strategic de-emphasis on financing assets.

Other Current Assets

Other current assets increase from 2.48% in 2020, peaking at 4.87% by 2025. This steady rise may indicate growing miscellaneous short-term assets or prepayments.

Current Assets

Overall, current assets as a percentage of total assets decline from 45.94% in 2020 to 28.61% in 2025. This decrease reflects the aggregate effects of reduced cash, investments, and financing receivables.

Property and Equipment, Net

Property and equipment remain a relatively small portion of total assets, showing a slight decrease from 2.59% in 2020 to approximately 1.7% in 2025, suggesting limited capital expenditure in fixed assets.

Goodwill

Goodwill represents a significant and growing portion of total assets, rising from 35.64% in 2020 to 48.36% by 2025. The increase suggests acquisitions or intangible asset capitalizations contributing heavily to asset value.

Purchased Intangible Assets, Net

After an initial rise and fall, purchased intangible assets increase substantially from 1.66% in 2020 to a peak of 9.02% in 2024, then slightly decrease to 7.5% in 2025. This pattern corresponds with strategic investment in intangible assets.

Deferred Tax Assets

Deferred tax assets as a share of total assets increase from 4.21% in 2020 to 6.46% in 2023, with minor fluctuations afterward, indicating growing recognition of tax benefits deferred to future periods.

Other Assets

Other long-term assets grow from 3.94% in 2020 to a peak of 6.34% in 2022, subsequently declining to around 4.95% by 2025, reflecting some reclassification or changes in miscellaneous asset items.

Long-term Assets

The proportion of long-term assets in total assets rises consistently, from 54.06% in 2020 to 71.39% in 2025. This reflects the strategic emphasis on intangible assets and goodwill, which gain increasing weight over time.

Overall, the data suggest a shift in asset structure from more liquid current assets, such as cash and investments, toward long-term and intangible assets, notably goodwill and purchased intangible assets. The trends indicate a strategic focus on acquisitions or investments in intangible value drivers, accompanied by a reduction in financing receivables and liquid holdings.