Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Cisco Systems Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 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), 10-K (reporting date: 2019-07-27).
The analysis of the financial data over the six-year period reveals several noteworthy trends pertaining to the composition of liabilities and equity.
- Short-term Debt
- There is a marked fluctuation in short-term debt as a percentage of total liabilities and equity. It declined significantly from 10.42% in 2019 to a low of 1.17% in 2022, followed by a sizable increase to 9.12% in 2024. This indicates a varying reliance on short-term borrowing.
- Accounts Payable
- Accounts payable remained relatively stable, hovering around 2% throughout the period with a slight decrease observed in 2024.
- Income Taxes Payable (Current)
- Current income taxes payable showed some volatility, peaking at 4.16% in 2023 before declining sharply to 1.16% in 2024.
- Accrued Compensation
- The proportion of accrued compensation remained fairly stable around 3-4%, though it declined to 2.9% in 2024.
- Deferred Revenue (Current)
- Deferred revenue as a percentage of total liabilities and equity exhibited a steady increase from 10.91% in 2019 to a peak of 13.66% in 2023, then decreased slightly to 13.06% in 2024, indicating growing but stabilizing advance payments.
- Other Current Liabilities
- Other current liabilities fluctuated moderately between approximately 4.5% and 5.5%.
- Current Liabilities
- Overall current liabilities decreased from 32.43% in 2019 to around 26-27% between 2020 and 2022, but then increased to 32.62% by 2024, reflecting changes in short-term obligations.
- Long-term Debt (Excluding Current Portion)
- This component showed a declining trend from 14.8% in 2019 to a low of 6.54% in 2023, followed by a significant increase to 15.77% in 2024, mirroring the pattern in short-term debt and implying renewed long-term borrowing.
- Income Taxes Payable (Long-term)
- Long-term income taxes payable decreased consistently from 9.13% in 2019 to 3.2% in 2024, signifying reduced deferred tax liabilities or other long-term tax obligations.
- Deferred Revenue (Long-term)
- Long-term deferred revenue increased steadily from 7.98% in 2019 to a peak of 11.43% in 2023 before declining to 9.83% in 2024, similarly to its current counterpart.
- Other Long-term Liabilities
- These liabilities showed a modest increase from 1.34% in 2019 to about 2.1-2.26% in subsequent years, then stabilizing near 2.04% in 2024.
- Long-term Liabilities
- Total long-term liabilities decreased from 33.24% in 2019 to 25.71% in 2023, rebounding to 30.84% in 2024, indicating some volatility but an overall moderate decline over the period.
- Total Liabilities
- There was a general downward trend in total liabilities from 65.67% in 2019 to a low of 56.45% in 2023, followed by a sharp increase to 63.46% in 2024. This suggests an overall reduction in liabilities over most of the period, with a recent reversal.
- Common Stock and Additional Paid-in Capital
- The proportion represented by common stock and additional paid-in capital remained relatively stable around 41-45% from 2019 through 2023 but declined to 36.81% in 2024, indicating a reduction in equity financing relative to total capitalization.
- Retained Earnings
- Retained earnings showed significant improvement from a negative balance of -6.04% in 2019 to positive territory at 1.61% in 2023, followed by a slight decline to 0.87% in 2024. This reflects an improvement in accumulated profitability over time.
- Accumulated Other Comprehensive Loss
- This metric decreased slightly in magnitude from -0.81% in 2019 to -1.15% in 2024, with some fluctuations that may indicate variations in unrealized losses or other comprehensive income components.
- Equity
- Total equity increased from 34.33% in 2019 to a high of 43.55% in 2023, indicating strengthening equity positions, but then decreased to 36.54% in 2024, pointing to a recent reduction in shareholders’ equity relative to total capitalization.
- Total Liabilities and Equity
- By definition, this remained constant at 100% across all periods, serving as the basis for relative comparisons.
In summary, the data indicates that the company experienced a general decrease in total liabilities and an increase in equity through 2023, demonstrating an overall strengthening of its financial structure. However, 2024 shows a reversal with increased liabilities, decreased equity proportions, and greater reliance on both short-term and long-term debt. Retained earnings improved over the period, reflecting enhanced profitability, but the recent shifts warrant attention regarding capital structure and debt management going forward.