Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Cisco Systems Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).

1 US$ in millions


Current Assets Trend
The current assets exhibit a general upward trend from 2005 through 2017, increasing from approximately $13 billion to over $83 billion. This growth suggests a steady accumulation of liquid and short-term assets during this period. However, beginning in 2018, current assets decline notably, dropping to around $36.8 billion by 2024. This sharp decrease over six years indicates a significant reduction in readily available resources, which could be indicative of changes in asset management, investment strategies, or operational liquidity requirements.
Current Liabilities Trend
Current liabilities increase from roughly $9.5 billion in 2005 to a peak of $31.3 billion in 2023, showing an overall rising trend with some fluctuations. The growth in liabilities generally tracks the rise in current assets until around 2018, though liabilities continue to climb even as current assets begin to fall. In 2024, liabilities jump sharply to approximately $40.6 billion, representing the highest level in the observed timeframe. This increase may reflect higher short-term obligations or increased leverage.
Current Ratio Analysis
The current ratio exhibits a clear pattern over the analysis period. Between 2005 and 2013, the ratio improves significantly from 1.37 to a high of 3.49, reflecting a solid liquidity position with current assets exceeding current liabilities by more than three times at its peak. This indicates strong short-term financial health during these years. However, from 2014 onwards, the current ratio begins to decline progressively, reaching a low of 0.91 by 2024. A ratio below 1.0 suggests that current liabilities exceed current assets, pointing to potential liquidity challenges or tighter working capital conditions in recent years.
Overall Insights
The data reveals an initial period of strengthening liquidity and asset growth, followed by a reversal starting around 2018 marked by declining current assets and increasing liabilities. The contraction in the current ratio to below unity is a significant shift from earlier strong liquidity and may warrant closer examination of short-term financial management and solvency risks. The trends imply a transition from a robust liquidity position to potentially constrained working capital, emphasizing the importance of monitoring cash flow and liability management going forward.

Comparison to Competitors

Cisco Systems Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).


Comparison to Sector (Technology Hardware & Equipment)

Cisco Systems Inc., current ratio, long-term trends, comparison to sector (technology hardware & equipment)

Microsoft Excel

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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).


Comparison to Industry (Information Technology)

Cisco Systems Inc., current ratio, long-term trends, comparison to industry (information technology)

Microsoft Excel

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), 10-K (reporting date: 2018-07-28), 10-K (reporting date: 2017-07-29), 10-K (reporting date: 2016-07-30), 10-K (reporting date: 2015-07-25), 10-K (reporting date: 2014-07-26), 10-K (reporting date: 2013-07-27), 10-K (reporting date: 2012-07-28), 10-K (reporting date: 2011-07-30), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-25), 10-K (reporting date: 2008-07-26), 10-K (reporting date: 2007-07-28), 10-K (reporting date: 2006-07-29), 10-K (reporting date: 2005-07-30).