Stock Analysis on Net
Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Cisco Systems Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Jul 25, 2026 Jul 26, 2025 Jul 27, 2024 Jul 29, 2023 Jul 30, 2022 Jul 31, 2021
Short-term debt 7.84 4.28 9.12 1.70 1.17 2.57
Accounts payable 2.60 2.07 1.85 2.27 2.43 2.42
Income taxes payable 0.15 1.52 1.16 4.16 1.02 0.82
Accrued compensation 3.13 2.95 2.90 3.91 3.53 3.92
Deferred revenue 13.10 13.42 13.06 13.66 13.60 12.46
Other current liabilities 5.22 4.43 4.54 5.04 5.53 4.74
Current liabilities 32.03% 28.67% 32.62% 30.74% 27.28% 26.93%
Long-term debt, excluding current portion 14.94 18.69 15.77 6.54 8.95 9.25
Income taxes payable 1.80 1.77 3.20 5.65 8.22 8.76
Deferred revenue 9.87 10.11 9.83 11.43 11.15 10.27
Other long-term liabilities 2.56 2.45 2.04 2.10 2.09 2.45
Long-term liabilities 29.18% 33.02% 30.84% 25.71% 30.41% 30.73%
Total liabilities 61.21% 61.70% 63.46% 56.45% 57.69% 57.67%
Preferred stock, $0.001 par value; none issued and outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock and additional paid-in capital, $0.001 par value 38.32 39.04 36.81 43.48 45.44 43.43
Retained earnings (accumulated deficit) 1.21 0.04 0.87 1.61 -1.40 -0.67
Accumulated other comprehensive loss -0.74 -0.78 -1.15 -1.55 -1.73 -0.43
Equity 38.79% 38.30% 36.54% 43.55% 42.31% 42.33%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2026-07-25), 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).

The capital structure of the organization has undergone a notable shift over the analyzed period, characterized by an increase in the proportion of total liabilities relative to total equity. Total liabilities remained relatively stable at approximately 57% of the total balance sheet through 2023, before increasing to a peak of 63.46% in 2024 and stabilizing around 61% in subsequent years. This shift indicates a strategic transition toward higher leverage.

Debt Composition and Liquidity
Short-term debt exhibits significant volatility, rising sharply from 1.70% in 2023 to 9.12% in 2024, before moderating to 7.84% by 2026. Parallel to this, long-term debt, excluding the current portion, showed a marked increase from 6.54% in 2023 to a peak of 18.69% in 2025. The simultaneous increase in both short-term and long-term debt obligations starting in 2024 suggests a period of intensified borrowing to fund operations or strategic investments.
Current and Long-term Liability Trends
Current liabilities increased from 26.93% in 2021 to 32.03% in 2026. A primary driver of stability within these liabilities is deferred revenue, which consistently represented between 12.46% and 13.66% of total liabilities and equity. Long-term liabilities peaked in 2025 at 33.02%, largely driven by the aforementioned increase in long-term debt, which offset a steady decline in long-term income taxes payable, falling from 8.76% in 2021 to 1.80% in 2026.
Equity and Shareholders' Position
Total equity experienced a downward trend, decreasing from 42.33% in 2021 to 38.79% in 2026, with a notable low of 36.54% in 2024. Common stock and additional paid-in capital followed a similar trajectory, declining from 43.43% to 38.32%. Retained earnings demonstrated fluctuation, moving from negative values of -1.40% in 2022 to a positive 1.21% by 2026, indicating a return to positive accumulated earnings. Accumulated other comprehensive loss narrowed slightly from a peak of -1.73% in 2022 to -0.74% in 2026.

Overall, the data reveals a trend of increasing financial leverage starting in 2024, as the company replaced a portion of its equity base with debt. Despite the increase in total liabilities, the consistency of deferred revenue suggests a stable stream of contracted future obligations, providing a predictable element to the liability structure.

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