Stock Analysis on Net

Cisco Systems Inc. (NASDAQ:CSCO)

$24.99

Debt to Equity
since 2005

Microsoft Excel

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Calculation

Cisco Systems Inc., debt to equity, 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


Total Debt
The total debt exhibits a fluctuating pattern over the observed years. Beginning from a value of 6,332 million USD in 2006, it generally increased, reaching a peak of 33,717 million USD in 2017. After this peak, debt declined substantially to 8,391 million USD by 2023, before rising sharply again to 30,962 million USD in 2024. This pattern indicates periods of both significant borrowing and deleveraging.
Equity
Equity shows a generally upward trend from 23,174 million USD in 2005 to 66,137 million USD in 2017, denoting growth in shareholder value over this span. Between 2017 and 2020, equity declined notably from 66,137 million USD to 33,571 million USD, after which it gradually recovered to reach 45,457 million USD by 2024. Despite fluctuations, the overall increase over the entire period is evident.
Debt to Equity Ratio
The debt to equity ratio demonstrates notable volatility. Initially low at approximately 0.20 in 2006 and 2007, it increased steadily, peaking at 0.73 in 2019. This rising ratio corresponds with the debt growth and equity decline during this period, indicating increased leverage. Subsequently, the ratio experienced a significant drop to 0.19 in 2023, reflecting deleveraging or equity recovery. However, in 2024, the ratio surged again to 0.68, aligned with the sharp debt increase and relatively moderate equity growth.
Insights
The financial data reveals cycles of capital structure adjustments marked by fluctuating debt levels and equity values. The sharp increases and decreases in total debt suggest strategic borrowing decisions potentially related to investment cycles or capital expenditures. Equity growth, interrupted by a decline around the late 2010s, aligns with the debt increase, impacting leverage ratios. The recent substantial rise in debt coupled with a moderate increase in equity implies a renewed emphasis on financing through debt, increasing leverage risk. Careful monitoring of this leverage dynamic is warranted given the potential implications for financial stability.

Comparison to Competitors

Cisco Systems Inc., debt to equity, 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., debt to equity, 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., debt to equity, 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).