Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cisco Systems Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-07-25), 10-Q (reporting date: 2026-04-25), 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30).
The company's liquidity position experienced a significant structural shift over the analyzed period, characterized by a marked decline in all key liquidity metrics beginning in the second quarter of 2024. Prior to this transition, the entity maintained a robust liquidity profile, but subsequent quarters indicate a compression in the capacity to cover short-term obligations using current assets.
- Current Ratio
- The current ratio began at 1.62 and remained relatively stable, fluctuating between 1.37 and 1.49 from January 2022 through January 2024. A precipitous decline occurred in April 2024, with the ratio dropping to 0.89. For the remainder of the observed period through July 2026, the ratio fluctuated between 0.87 and 1.00, indicating a state where current liabilities frequently equaled or exceeded current assets.
- Quick Ratio
- Parallel to the current ratio, the quick ratio exhibited stability between 1.10 and 1.23 through early 2024. A sharp reduction to 0.68 was recorded in April 2024. The ratio remained depressed through July 2026, ranging between 0.64 and 0.74, which highlights a reduced ability to meet immediate liabilities without relying on the liquidation of inventory.
- Cash Ratio
- The cash ratio demonstrated a significant decrease from a peak of 1.00 in October 2021, maintaining a range of 0.75 to 0.87 until January 2024. Following the April 2024 drop to 0.47, the ratio remained low, ending at 0.38 in July 2026. This trend reflects a substantial reduction in the proportion of highly liquid assets available to satisfy current liabilities.
The simultaneous deterioration of all three ratios in April 2024 suggests a systemic change in the balance sheet, likely resulting from a significant increase in current liabilities or a substantial reallocation of cash reserves. The subsequent stabilization of these ratios at lower levels indicates a shift toward a more aggressive working capital management strategy.
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Current Ratio
Cisco Systems Inc., current ratio calculation (quarterly data)
| Jul 25, 2026 | Apr 25, 2026 | Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 38,665) | 36,559) | 35,131) | 32,876) | 34,986) | 32,816) | 34,681) | 35,752) | 36,862) | 35,886) | 42,127) | 39,659) | 43,348) | 39,950) | 38,515) | 36,141) | 36,717) | 35,981) | 36,799) | 37,588) | ||||||
| Current liabilities | 41,525) | 39,541) | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 0.93 | 0.92 | 0.96 | 0.93 | 1.00 | 0.95 | 0.87 | 0.88 | 0.91 | 0.89 | 1.37 | 1.47 | 1.38 | 1.39 | 1.41 | 1.45 | 1.43 | 1.49 | 1.42 | 1.62 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 1.00 | 1.07 | 0.97 | 0.89 | 0.87 | 0.82 | 0.92 | 0.87 | 0.95 | 1.04 | 1.07 | 0.99 | 0.98 | 0.94 | 0.94 | 0.88 | 0.86 | 0.93 | 1.04 | ||||||
| Arista Networks Inc. | — | — | 2.96 | 2.83 | 3.05 | 3.25 | 3.33 | 3.93 | 4.36 | 4.47 | 4.55 | 5.01 | 4.39 | 4.15 | 4.14 | 3.96 | 4.29 | 4.01 | 3.70 | 3.73 | ||||||
| Dell Technologies Inc. | 0.91 | 0.85 | 0.83 | 0.85 | 0.78 | 0.77 | 0.72 | 0.73 | 0.74 | 0.76 | 0.77 | 0.80 | 0.82 | 0.75 | 0.77 | 0.78 | 0.80 | 0.82 | 0.79 | 0.77 | ||||||
| Lumentum Holdings Inc. | 1.68 | 1.14 | 0.61 | 1.37 | 4.37 | 4.72 | 4.76 | 5.36 | 5.90 | 5.20 | 3.13 | 4.53 | 4.38 | 3.20 | 3.06 | 3.04 | 4.38 | 4.69 | 3.87 | 3.96 | ||||||
| Super Micro Computer Inc. | 3.87 | 2.66 | 1.70 | 5.39 | 5.25 | 6.66 | 6.38 | 3.43 | 3.81 | 4.69 | 2.43 | 2.23 | 2.31 | 2.49 | 2.89 | 2.13 | 1.91 | 1.79 | 1.91 | 1.85 | ||||||
Based on: 10-K (reporting date: 2026-07-25), 10-Q (reporting date: 2026-04-25), 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30).
1 Q4 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 38,665 ÷ 41,525 = 0.93
2 Click competitor name to see calculations.
Analysis of liquidity trends reveals a significant structural shift in the relationship between current assets and current liabilities over the observed period. The current ratio, serving as the primary indicator of short-term solvency, transitioned from a position of consistent coverage to a more constrained liquidity state.
- Current Ratio Trajectory
- From October 2021 through January 2024, the current ratio maintained a stable range between 1.37 and 1.62, indicating a healthy margin of safety where current assets comfortably exceeded current liabilities. A pivotal decline occurred in April 2024, when the ratio dropped sharply to 0.89. For the remainder of the period, ending July 2026, the ratio fluctuated within a narrow band between 0.87 and 1.00, suggesting a tighter liquidity position where short-term obligations are roughly equal to or slightly exceed available liquid assets.
- Asset and Liability Component Analysis
- The deterioration of the current ratio is predominantly driven by a marked increase in current liabilities rather than a systemic collapse of current assets. While current assets exhibited volatility—peaking at 43.35 billion USD in July 2023 before stabilizing between 32 billion and 38 billion USD—current liabilities experienced a substantial step-up. Liabilities rose from 30.85 billion USD in January 2024 to 40.11 billion USD by April 2024. This elevated liability level persisted throughout 2024 and 2025, fundamentally altering the company's short-term financial leverage.
- Liquidity Stability Assessment
- The transition from a ratio consistently above 1.30 to one hovering around 0.90 indicates a shift in working capital management. The data shows a pattern where the company is operating with a significantly reduced liquidity buffer. The most recent readings through July 2026 confirm that the current ratio has not recovered to pre-2024 levels, reflecting a sustained change in the balance sheet structure.
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Quick Ratio
Cisco Systems Inc., quick ratio calculation (quarterly data)
| Jul 25, 2026 | Apr 25, 2026 | Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 7,218) | 7,083) | 7,458) | 8,400) | 8,346) | 8,161) | 8,556) | 9,065) | 7,508) | 8,913) | 13,715) | 9,602) | 10,123) | 8,044) | 9,009) | 7,292) | 7,079) | 6,952) | 6,731) | 7,619) | ||||||
| Investments | 8,700) | 9,557) | 8,319) | 7,336) | 7,764) | 7,481) | 8,297) | 9,606) | 10,346) | 9,857) | 11,956) | 13,921) | 16,023) | 15,244) | 13,052) | 12,492) | 12,188) | 13,156) | 14,382) | 15,727) | ||||||
| Accounts receivable, net of allowance | 7,470) | 6,480) | 6,606) | 4,827) | 6,701) | 5,277) | 5,669) | 4,457) | 6,685) | 5,127) | 4,884) | 4,833) | 5,854) | 5,104) | 5,237) | 5,439) | 6,622) | 5,783) | 6,003) | 5,306) | ||||||
| Financing receivables, net | 3,392) | 2,936) | 2,944) | 3,085) | 3,061) | 2,958) | 3,074) | 3,123) | 3,338) | 3,443) | 3,476) | 3,414) | 3,352) | 3,402) | 3,557) | 3,683) | 3,905) | 3,804) | 3,997) | 4,070) | ||||||
| Total quick assets | 26,780) | 26,056) | 25,327) | 23,648) | 25,872) | 23,877) | 25,596) | 26,251) | 27,877) | 27,340) | 34,031) | 31,770) | 35,352) | 31,794) | 30,855) | 28,906) | 29,794) | 29,695) | 31,113) | 32,722) | ||||||
| Current liabilities | 41,525) | 39,541) | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.64 | 0.66 | 0.69 | 0.67 | 0.74 | 0.69 | 0.64 | 0.65 | 0.69 | 0.68 | 1.10 | 1.18 | 1.13 | 1.11 | 1.13 | 1.16 | 1.16 | 1.23 | 1.20 | 1.41 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 0.81 | 0.91 | 0.85 | 0.77 | 0.72 | 0.68 | 0.78 | 0.75 | 0.80 | 0.87 | 0.92 | 0.84 | 0.81 | 0.76 | 0.77 | 0.71 | 0.70 | 0.76 | 0.88 | ||||||
| Arista Networks Inc. | — | — | 2.29 | 2.18 | 2.35 | 2.48 | 2.58 | 3.07 | 3.46 | 3.52 | 3.47 | 3.67 | 3.16 | 2.86 | 2.73 | 2.65 | 3.05 | 2.89 | 2.73 | 2.97 | ||||||
| Dell Technologies Inc. | 0.59 | 0.55 | 0.53 | 0.45 | 0.41 | 0.43 | 0.40 | 0.40 | 0.44 | 0.47 | 0.47 | 0.48 | 0.52 | 0.41 | 0.44 | 0.44 | 0.49 | 0.60 | 0.53 | 0.55 | ||||||
| Lumentum Holdings Inc. | 1.31 | 0.93 | 0.41 | 0.94 | 2.87 | 3.18 | 3.24 | 3.65 | 4.02 | 3.47 | 2.24 | 3.65 | 3.57 | 2.53 | 2.47 | 2.45 | 3.92 | 4.25 | 3.44 | 3.51 | ||||||
| Super Micro Computer Inc. | 1.91 | 1.19 | 0.98 | 2.86 | 3.14 | 3.63 | 3.31 | 1.68 | 1.88 | 2.19 | 1.12 | 0.87 | 1.16 | 0.95 | 1.17 | 0.72 | 0.75 | 0.62 | 0.62 | 0.66 | ||||||
Based on: 10-K (reporting date: 2026-07-25), 10-Q (reporting date: 2026-04-25), 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30).
1 Q4 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 26,780 ÷ 41,525 = 0.64
2 Click competitor name to see calculations.
The liquidity position of the entity underwent a significant structural shift between October 2021 and July 2026. Initially, the organization maintained a robust liquidity profile with a quick ratio consistently above 1.10, indicating a strong capacity to meet short-term obligations using only its most liquid assets. However, a sharp decline occurred in the second quarter of 2024, after which the quick ratio remained consistently below 1.00, signaling a tighter liquidity position.
- Total Quick Assets
- Quick assets exhibited volatility throughout the analyzed period. Starting at 32,722 million US dollars in October 2021, assets peaked at 35,352 million US dollars in July 2023. Subsequently, a general downward trend emerged, with values stabilizing between 23,648 million and 27,877 million US dollars from April 2024 through July 2026. This overall reduction in liquid holdings contributed to the diminished liquidity ratios in the latter half of the period.
- Current Liabilities
- A notable escalation in current liabilities is observed. From October 2021 to January 2024, liabilities fluctuated between 23,238 million and 31,309 million US dollars. A significant increase occurred in April 2024, where liabilities jumped to 40,108 million US dollars. This elevated level of short-term debt persisted through July 2026, ending at 41,525 million US dollars, representing a substantial increase in the organization's immediate financial obligations.
- Quick Ratio Trend Analysis
- The quick ratio demonstrates a two-phase trajectory. The first phase, spanning from October 2021 to January 2024, was characterized by stability, with the ratio ranging from a high of 1.41 to a low of 1.10. The second phase began in April 2024, marked by a precipitous drop to 0.68. For the remainder of the period, the ratio fluctuated within a narrow band between 0.64 and 0.74. This transition indicates that the entity's liquid assets are no longer sufficient to cover current liabilities on a one-to-one basis, shifting the liquidity profile from a surplus to a deficit position.
The convergence of declining quick assets and sharply increasing current liabilities resulted in a persistent reduction of the quick ratio. The data indicates a fundamental change in the balance sheet composition starting in early 2024, leading to a sustained period of lower immediate liquidity through July 2026.
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Cash Ratio
Cisco Systems Inc., cash ratio calculation (quarterly data)
| Jul 25, 2026 | Apr 25, 2026 | Jan 24, 2026 | Oct 25, 2025 | Jul 26, 2025 | Apr 26, 2025 | Jan 25, 2025 | Oct 26, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 7,218) | 7,083) | 7,458) | 8,400) | 8,346) | 8,161) | 8,556) | 9,065) | 7,508) | 8,913) | 13,715) | 9,602) | 10,123) | 8,044) | 9,009) | 7,292) | 7,079) | 6,952) | 6,731) | 7,619) | ||||||
| Investments | 8,700) | 9,557) | 8,319) | 7,336) | 7,764) | 7,481) | 8,297) | 9,606) | 10,346) | 9,857) | 11,956) | 13,921) | 16,023) | 15,244) | 13,052) | 12,492) | 12,188) | 13,156) | 14,382) | 15,727) | ||||||
| Total cash assets | 15,918) | 16,640) | 15,777) | 15,736) | 16,110) | 15,642) | 16,853) | 18,671) | 17,854) | 18,770) | 25,671) | 23,523) | 26,146) | 23,288) | 22,061) | 19,784) | 19,267) | 20,108) | 21,113) | 23,346) | ||||||
| Current liabilities | 41,525) | 39,541) | 36,786) | 35,451) | 35,064) | 34,495) | 40,019) | 40,542) | 40,584) | 40,108) | 30,851) | 27,035) | 31,309) | 28,719) | 27,252) | 24,896) | 25,640) | 24,150) | 25,915) | 23,238) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.38 | 0.42 | 0.43 | 0.44 | 0.46 | 0.45 | 0.42 | 0.46 | 0.44 | 0.47 | 0.83 | 0.87 | 0.84 | 0.81 | 0.81 | 0.79 | 0.75 | 0.83 | 0.81 | 1.00 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 0.42 | 0.51 | 0.41 | 0.33 | 0.39 | 0.34 | 0.37 | 0.37 | 0.47 | 0.54 | 0.55 | 0.42 | 0.50 | 0.47 | 0.37 | 0.31 | 0.37 | 0.40 | 0.43 | ||||||
| Arista Networks Inc. | — | — | 1.96 | 1.88 | 2.00 | 2.17 | 2.18 | 2.61 | 3.04 | 3.05 | 2.90 | 3.06 | 2.62 | 2.41 | 2.26 | 2.10 | 2.34 | 2.37 | 2.27 | 2.50 | ||||||
| Dell Technologies Inc. | 0.18 | 0.19 | 0.15 | 0.15 | 0.08 | 0.11 | 0.09 | 0.12 | 0.15 | 0.17 | 0.16 | 0.16 | 0.17 | 0.09 | 0.10 | 0.13 | 0.17 | 0.32 | 0.21 | 0.26 | ||||||
| Lumentum Holdings Inc. | 1.10 | 0.82 | 0.31 | 0.74 | 2.23 | 2.46 | 2.58 | 3.00 | 3.29 | 2.74 | 1.86 | 3.27 | 3.18 | 2.17 | 2.06 | 2.02 | 3.56 | 3.88 | 3.08 | 3.08 | ||||||
| Super Micro Computer Inc. | 1.05 | 0.16 | 0.27 | 1.79 | 2.20 | 1.78 | 1.05 | 0.73 | 0.71 | 1.23 | 0.36 | 0.34 | 0.32 | 0.33 | 0.33 | 0.18 | 0.18 | 0.17 | 0.21 | 0.25 | ||||||
Based on: 10-K (reporting date: 2026-07-25), 10-Q (reporting date: 2026-04-25), 10-Q (reporting date: 2026-01-24), 10-Q (reporting date: 2025-10-25), 10-K (reporting date: 2025-07-26), 10-Q (reporting date: 2025-04-26), 10-Q (reporting date: 2025-01-25), 10-Q (reporting date: 2024-10-26), 10-K (reporting date: 2024-07-27), 10-Q (reporting date: 2024-04-27), 10-Q (reporting date: 2024-01-27), 10-Q (reporting date: 2023-10-28), 10-K (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-K (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30).
1 Q4 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,918 ÷ 41,525 = 0.38
2 Click competitor name to see calculations.
The liquidity profile exhibits a distinct structural shift starting in the second quarter of 2024, moving from a period of relative stability to a significantly lower cash-to-liability position. For the first two years of the observed period, the company maintained a cash ratio generally between 0.75 and 1.00, indicating a strong ability to cover immediate obligations with cash assets. However, a sharp contraction occurred in April 2024, after which the ratio stabilized at a much lower range between 0.38 and 0.47.
- Total Cash Assets Trend
- Cash assets remained relatively volatile but robust between October 2021 and January 2024, peaking at 26,146 million USD in July 2023. A notable reduction occurred in April 2024, where assets dropped to 18,770 million USD. Following this decline, cash levels plateaued, fluctuating within a narrower band of approximately 15,600 million USD to 16,800 million USD through July 2026.
- Current Liabilities Expansion
- A significant increase in current liabilities is observed coinciding with the liquidity shift. From October 2021 to January 2024, liabilities generally fluctuated between 23,238 million USD and 31,309 million USD. In April 2024, there was a substantial spike to 40,108 million USD. This higher baseline persisted throughout the remainder of the period, with liabilities ending at 41,525 million USD in July 2026.
- Cash Ratio Compression
- The cash ratio experienced a precipitous decline from 0.83 in January 2024 to 0.47 in April 2024. This compression was driven by the simultaneous decrease in cash assets and the sharp increase in current liabilities. For the subsequent ten quarters, the ratio remained depressed, reaching its lowest point of 0.38 in July 2026, suggesting a diminished immediate liquidity cushion compared to the 2021-2023 period.
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