Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Cisco Systems Inc., consolidated balance sheet: assets
US$ in millions
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 data reveals several notable trends and shifts across the financial position over the examined periods.
- Cash and Cash Equivalents
- This balance experienced fluctuations, starting at $11,750 million and peaking at $11,809 million in 2020 before declining to a low of $7,079 million in 2022. It partially recovered to $10,123 million in 2023, then decreased again to $7,508 million in 2024, indicating variable liquidity management or cash usage.
- Investments
- Total investments show a declining trend from $21,663 million in 2019 to $10,346 million in 2024, with intermittent partial recoveries such as in 2023 at $16,023 million. This decline may suggest a divestment, reallocation of resources, or market-driven valuation changes.
- Accounts Receivable, Net
- Accounts receivable increased overall from $5,491 million in 2019 to $6,685 million in 2024, with some variations. The rise implies increased sales on credit or extended payment terms towards the latter years, which can affect cash flow dynamics.
- Inventories
- Inventories more than doubled from $1,383 million in 2019 to a peak of $3,644 million in 2023, followed by a slight decrease to $3,373 million in 2024. This increase might reflect higher production or stocking in anticipation of demand, possibly impacting working capital requirements.
- Financing Receivables, Net
- This balance decreased steadily from $5,095 million in 2019 to $3,338 million in 2024, signaling a reduction in financed sales or tightening credit policies related to financing receivables.
- Other Current Assets
- Other current assets rose substantially from $2,373 million in 2019 to $5,612 million in 2024, indicating growing miscellaneous short-term assets or prepaid expenses that affect current asset quality and liquidity.
- Total Current Assets
- Current assets overall declined from $47,755 million in 2019 to a low of $36,717 million in 2022 but rebounded to $43,348 million in 2023 before decreasing again to $36,862 million in 2024. This pattern reflects variability in liquidity and short-term resource availability.
- Property and Equipment, Net
- Net property and equipment decreased from $2,789 million in 2019 to around $2,090 million in 2024, indicating possible asset disposals, depreciation without significant reinvestment, or shifts in capital expenditure strategy.
- Goodwill
- Goodwill increased notably from $33,529 million in 2019 to $58,660 million in 2024, reflecting acquisitions or the recognition of additional intangible value over time. The substantial rise in 2024 is particularly significant and may influence impairment risk assessments.
- Purchased Intangible Assets, Net
- The valuation of purchased intangible assets showed considerable volatility, decreasing from $2,201 million in 2019 to $1,818 million in 2023, before sharply rising to $11,219 million in 2024. This jump suggests recent acquisitions or revaluations impacting the intangible asset base.
- Deferred Tax Assets
- Deferred tax assets increased over the period, from $4,065 million to a peak of $6,576 million in 2023, and slightly lower at $6,262 million in 2024. This trend may indicate the recognition of future tax benefits due to timing differences or losses carried forward.
- Other Assets
- Other assets rose consistently from $2,496 million in 2019 to around $5,944 million in 2024, doubling in magnitude and contributing to growth in long-term asset holdings.
- Total Long-Term Assets
- Long-term assets increased significantly from $50,038 million in 2019 to $87,551 million in 2024, driven particularly by increases in goodwill, intangibles, and other assets, indicating substantial investment in non-current resources.
- Total Assets
- Total assets fluctuated modestly from $97,793 million in 2019 to $124,413 million in 2024, with a dip noted in 2020 and 2022. The overall increase was largely fueled by growth in long-term assets, especially goodwill and intangible assets, reflecting acquisitions or capital investments.
In summary, the data reflects a trend toward increased investment in intangibles and goodwill, suggesting strategic acquisitions or brand value enhancement. Liquidity, as demonstrated by fluctuating cash and current assets balances, shows variability possibly related to operational or investment activities. The decline in financing receivables and property and equipment net balances points to shifts in credit policy and asset management. The overall growth in total assets, particularly in intangible and deferred tax assets, indicates evolving asset structure and continued capital deployment in longer-term investments.