Cisco Systems Inc. (NASDAQ:CSCO)

The analysis of the current assets and adjusted current assets over the six-year period reveals notable fluctuations and patterns. Both metrics exhibit a similar trajectory, reflecting close correlation in their values throughout the period.

Current Assets

Current assets started at a high point of 43,573 million USD in July 2020, followed by a decline over the next two years reaching 36,717 million USD by July 2022. This represents a significant reduction in liquid and short-term resources. However, in July 2023, current assets rose sharply to 43,348 million USD, almost returning to the initial 2020 level. After this peak, a decline resumed with values falling to 36,862 million USD in July 2024 and further down to 34,986 million USD by July 2025.

Adjusted Current Assets

The adjusted current assets mirrored the same trend, beginning at 43,716 million USD in July 2020 and decreasing steadily to 36,800 million USD by July 2022. Similar to the current assets, there was a marked recovery in July 2023 to 43,433 million USD, followed by a decline to 36,949 million USD in July 2024 and 35,055 million USD in July 2025. The adjusted figures generally remain slightly higher than the reported current assets, indicating a minor upward adjustment in the valuation or classification of assets.

Overall, the pattern indicates an initial contraction in current assets over the first half of the period, a significant rebound in the third year (2023), and a subsequent downward trend in the final two years of the dataset. The similarity between adjusted and reported current assets suggests adjustments have been minor, reinforcing the reliability of the general asset trend observed.

The analysis of the annual financial data reveals the following trends and patterns regarding the company's asset base over the six-year period:

Total Assets

The total assets exhibited a generally upward trajectory from 2020 to 2025, though with some fluctuation. Beginning at 94,853 million US dollars in 2020, total assets peaked at 124,413 million US dollars in 2024, representing a significant increase. There was a slight decline in 2025 to 122,291 million US dollars, indicating a minor reduction after reaching the highest value.

This pattern suggests growth and expansion in asset holdings over the period, with a brief pullback in the final year possibly due to asset disposals, revaluations, or other strategic financial decisions.

Adjusted Total Assets

Adjusted total assets show a similar upward trend, starting at 91,006 million US dollars in 2020 and increasing to a high of 118,238 million US dollars in 2024. The data then reflects a slight decrease to 115,004 million US dollars in 2025.

The adjustments appear to mirror overall asset growth while showing consistent reductions compared to total assets, possibly accounting for factors such as depreciation, amortization, or asset impairments. The close parallel movements between adjusted and total assets indicate stability in the adjustments applied throughout the years.

Overall, the company has demonstrated asset growth over the reviewed timeframe, with a peak in the year 2024 followed by a moderate contraction in 2025. The adjusted asset values reinforce this trend with similarly shaped changes, suggesting consistent accounting treatments. These insights imply a careful asset management strategy balancing expansion and optimization efforts.

The analysis of the current liabilities and adjusted current liabilities over the six-year period reveals important trends in the company's short-term financial obligations.

Current Liabilities

The current liabilities exhibit an overall increasing trend from 25,331 million USD in July 2020 to a peak of 40,584 million USD in July 2024. This represents significant growth in short-term obligations. However, in the final year (July 2025), there is a noticeable decline to 35,064 million USD, indicating some reduction in these liabilities. Notwithstanding the decrease in the last year, the level of current liabilities in 2025 remains substantially higher than at the beginning of the period.

Adjusted Current Liabilities

The adjusted current liabilities follow a pattern broadly consistent with the unadjusted figures but at generally lower absolute values, reflecting a refined measure of short-term obligations. Starting at 13,925 million USD in July 2020, these liabilities decreased slightly to 12,856 million USD by July 2022, indicating a period of relative restraint. From July 2022 onwards, there is a marked increase peaking at 24,335 million USD in July 2024, nearly doubling since 2022. Similar to the trend in total current liabilities, adjusted current liabilities decline in July 2025 to 18,648 million USD, suggesting some improvement in managing adjusted short-term obligations.

Overall Observations

Both current liabilities and adjusted current liabilities show considerable volatility and an upward trend over the observed period, peaking in 2024 before receding somewhat in 2025. The increases imply growing short-term financial commitments, which could affect liquidity and operational flexibility. The subsequent reduction in 2025 may indicate efforts to manage or reduce these liabilities. However, the levels at the end of the period remain elevated compared to the starting position.

The analysis of the annual financial data reveals notable fluctuations in Cisco Systems Inc.'s total liabilities and adjusted total liabilities over the six-year period from July 2020 to July 2025.

Total Liabilities

The company's total liabilities exhibited a generally stable trend from July 2020 through July 2023, with figures ranging between 54,229 million US dollars and 57,499 million US dollars. This relative stability was interrupted in July 2024 when total liabilities sharply increased to 78,956 million US dollars, indicating a significant rise. However, this increase was partially reversed in July 2025 when total liabilities decreased to 75,448 million US dollars, though the figure remained substantially higher than the earlier years.

Adjusted Total Liabilities

Adjusted total liabilities displayed a slightly different pattern. There was a consistent decrease from 36,002 million US dollars in July 2020 to 30,568 million US dollars in July 2022, suggesting a reduction in certain liabilities or adjustments affecting the total. In July 2023, a mild increase to 31,345 million US dollars was observed, followed by a pronounced increase to 49,769 million US dollars in July 2024, mirroring the spike in total liabilities but at a lower absolute level. In July 2025, the adjusted total liabilities reduced to 46,048 million US dollars, maintaining a higher level than the initial years but indicating some management of these liabilities.

Overall Insights

The sudden increases in both total and adjusted total liabilities in July 2024 suggest an event or series of events that significantly impacted the company's liability structure, such as increased borrowing, reclassification of liabilities, or other financial activities. Despite some reduction in the subsequent year, the levels did not return to earlier baselines, implying a potentially new normal in the company’s liability profile. The divergence and magnitude of adjusted total liabilities compared to the total liabilities indicate differing components or adjustments within the liabilities that warrant further examination to assess their nature and impact on the company's financial health.

Equity Trends

The reported equity shows a generally positive trend over the six-year period. Starting at 37,920 million US dollars in the 2020 fiscal year, equity increased to 41,275 million by 2021, representing an approximate growth of 8.8%. However, a slight decline occurred in 2022 with equity decreasing to 39,773 million, indicating some variability. From 2023 onwards, equity steadily rose, reaching 44,353 million in 2023, 45,457 million in 2024, and 46,843 million in 2025, demonstrating a consistent increase in shareholder value over the last three years.

Adjusted Equity Trends

Adjusted equity, which may account for items such as goodwill, intangible assets, or other adjustments, presents a higher base and exhibits a similar upward trend albeit with different magnitude. Beginning at 55,004 million in 2020, adjusted equity rose to 59,692 million in 2021. It slightly decreased to 59,068 million in 2022, mirroring the decline observed in reported equity that year. Following this period, adjusted equity increased notably to 64,016 million in 2023, and then further to 68,469 million in 2024. A marginal increase occurred in 2025, reaching 68,956 million. The data indicates stronger growth in adjusted equity compared to reported equity, suggesting possible favorable adjustments impacting the company’s net asset position over time.

Comparative Insights

Both equity measures demonstrate resilience and overall growth through the six-year span. The periods of decline in 2022 are noticeable but brief, followed by recovery and growth in subsequent years. The adjusted equity consistently exceeds reported equity by a significant margin, which may reflect the impact of accounting adjustments or revaluations that enhance the perceived financial strength. The steady increases from 2023 to 2025 imply strong retention of earnings or capital inflows. These trends suggest an improving capitalization profile and potentially enhanced shareholder value.

The analysis of the annual financial data reveals several key trends related to debt, equity, and capital over the observed periods.

Total Reported Debt

The total reported debt shows a declining trend from July 25, 2020, to July 29, 2023, decreasing from 14,583 million USD to 8,391 million USD. However, there is a sharp increase starting in the period ending July 27, 2024, where debt jumps to 30,962 million USD, followed by a slight decrease to 28,093 million USD in the subsequent year.

Equity

Equity levels exhibit a generally upward trend over the period analyzed. Starting at 37,920 million USD in 2020, equity increases steadily to 44,353 million USD by 2023 and continues to rise to 46,843 million USD by 2025, indicating growing shareholder value.

Total Reported Capital

The total reported capital fluctuates mildly in the first four periods, ranging between approximately 49,288 million USD and 52,801 million USD. A significant jump is observed in 2024, reaching 76,419 million USD, which corresponds with the marked increase in reported debt. This elevated capital level slightly decreases to 74,936 million USD by 2025 but remains substantially higher than prior years.

Adjusted Total Debt

Adjusted total debt trends mirror those of total reported debt, with an initial decrease from 15,585 million USD in 2020 to 9,411 million USD in 2023. This is followed by a sharp rise to 32,232 million USD in 2024, then a slight decline to 29,643 million USD in the latest period.

Adjusted Equity

Adjusted equity consistently increases from 55,004 million USD in 2020 to 68,956 million USD in 2025, suggesting sustained growth in the company's net asset base when adjustments are considered.

Adjusted Total Capital

The adjusted total capital data reflect a steady increase over the years, moving from 70,589 million USD in 2020 to nearly 73,427 million USD in 2023. A notable rise occurs in 2024 to 100,701 million USD, consistent with the adjusted debt rise. This is followed by a slight decrease to 98,599 million USD by 2025, yet remaining significantly above earlier periods.

Overall, the data suggest a strategic shift beginning in 2024 characterized by a considerable increase in leverage, as evidenced by the substantial rise in both reported and adjusted debt and total capital figures. Despite this increased debt, equity continues its steady growth, which may indicate successful capital management and potential investment activities driving expansion or acquisitions. The increased capital structure size from 2024 onward reflects a pronounced change in financial position, warranting further scrutiny regarding its drivers and sustainability.

Revenue Trends

The revenue exhibited a general upward trend from 2020 to 2025, increasing from approximately $49.3 billion in 2020 to about $56.7 billion in 2025. Notably, there was a significant growth spurt between 2022 and 2023, where revenue jumped from $51.6 billion to $57.0 billion, followed by a decline to $53.8 billion in 2024, and a recovery thereafter.

Adjusted Revenue Trends

Adjusted revenue figures consistently exceeded the reported revenue in each year, indicating additional adjustments or normalizations increasing the recognized income. The adjusted revenue rose steadily from $51.3 billion in 2020 to $56.9 billion in 2025. A similar pattern of growth is observed with a peak in 2023 at $59.3 billion, a decrease in 2024, and a modest increase again in 2025.

Comparison Between Revenue and Adjusted Revenue

The gap between reported revenue and adjusted revenue remained relatively stable over the years, suggesting consistent adjustments applied year over year. The largest absolute gap appears in 2023 and the smallest difference in 2025, highlighting some variability but no drastic changes in adjustment practices.

Insights

The overall positive trajectory in revenue and adjusted revenue points to an underlying growth momentum for the company, notwithstanding the slight dip seen in 2024. The close alignment between revenue and adjusted revenue suggests reporting consistency and reliable adjustments. The fluctuations in 2024 may warrant further investigation to identify transient challenges or market conditions impacting performance during that period.

The analysis of the net income data over the six-year period reveals a fluctuating trend with variations in both net income and adjusted net income figures.

Net Income

Net income started at 11,214 million US dollars in 2020 and experienced a decline to 10,591 million in 2021. This was followed by an upward movement reaching a peak of 12,613 million in 2023. However, subsequent years saw a decline, with net income dropping to 10,320 million in 2024 and further slightly decreasing to 10,180 million in 2025. This indicates a period of volatility with a notable recovery mid-period, but a downward trend in the final years.

Adjusted Net Income

Adjusted net income exhibited a generally declining trend from 13,464 million in 2020 to 11,344 million in 2022. A recovery is noted in 2023 with an increase to 13,064 million, followed by a minor decline to 12,514 million in 2024. The last year, 2025, shows a significant drop to 9,720 million, representing the lowest value within the period examined. This pattern suggests adjustments to net income may have become less favorable or reflective of operational changes affecting profitability in recent years.

Comparison and Insights

Throughout the period, adjusted net income consistently exceeded reported net income until the last year, implying that adjustments made generally improved the underlying profitability metrics. The sharp decline in adjusted net income in 2025 compared to net income implies changes in adjustment factors or extraordinary items impacting adjusted profitability. The fluctuations and declines towards the end of the period may warrant further investigation into operational efficiencies, cost structure, or market conditions affecting financial performance.