Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Cisco Systems Inc., solvency ratios
Based on: 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cisco Systems Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Cisco Systems Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cisco Systems Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Cisco Systems Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cisco Systems Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Cisco Systems Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cisco Systems Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cisco Systems Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Cisco Systems Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity
Cisco Systems Inc., debt to equity calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Equity | 44,353) | 39,773) | 41,275) | 37,920) | 33,571) | 43,204) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.19 | 0.24 | 0.28 | 0.38 | 0.73 | 0.59 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Apple Inc. | 1.80 | 2.39 | 1.99 | 1.73 | 1.19 | 1.07 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | 0.03 | 0.03 | 0.14 | |
| Debt to Equity, Sector | |||||||
| Technology Hardware & Equipment | 1.04 | 1.36 | 1.25 | 1.19 | 1.04 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.63 | 0.67 | 0.77 | 0.88 | 0.88 | — | |
Based on: 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).
1 2023 Calculation
Debt to equity = Total debt ÷ Equity
= 8,391 ÷ 44,353 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cisco Systems Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Cisco Systems Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Operating lease liabilities (included in Other current liabilities) | 313) | 322) | 337) | 341) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 707) | 724) | 831) | 661) | —) | —) | |
| Total debt (including operating lease liability) | 9,411) | 10,561) | 12,694) | 15,585) | 24,666) | 25,569) | |
| Equity | 44,353) | 39,773) | 41,275) | 37,920) | 33,571) | 43,204) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.21 | 0.27 | 0.31 | 0.41 | 0.73 | 0.59 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 1.99 | 2.61 | 2.16 | 1.87 | 1.19 | 1.07 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | 0.05 | 0.03 | 0.14 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 1.16 | 1.49 | 1.37 | 1.28 | 1.04 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.69 | 0.73 | 0.84 | 0.95 | 0.90 | — | |
Based on: 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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity
= 9,411 ÷ 44,353 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Cisco Systems Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Cisco Systems Inc., debt to capital calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Equity | 44,353) | 39,773) | 41,275) | 37,920) | 33,571) | 43,204) | |
| Total capital | 52,744) | 49,288) | 52,801) | 52,503) | 58,237) | 68,773) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.16 | 0.19 | 0.22 | 0.28 | 0.42 | 0.37 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Apple Inc. | 0.64 | 0.70 | 0.67 | 0.63 | 0.54 | 0.52 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | 0.03 | 0.02 | 0.12 | |
| Debt to Capital, Sector | |||||||
| Technology Hardware & Equipment | 0.51 | 0.58 | 0.56 | 0.54 | 0.51 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.47 | — | |
Based on: 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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,391 ÷ 52,744 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cisco Systems Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Cisco Systems Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Operating lease liabilities (included in Other current liabilities) | 313) | 322) | 337) | 341) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 707) | 724) | 831) | 661) | —) | —) | |
| Total debt (including operating lease liability) | 9,411) | 10,561) | 12,694) | 15,585) | 24,666) | 25,569) | |
| Equity | 44,353) | 39,773) | 41,275) | 37,920) | 33,571) | 43,204) | |
| Total capital (including operating lease liability) | 53,764) | 50,334) | 53,969) | 53,505) | 58,237) | 68,773) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.18 | 0.21 | 0.24 | 0.29 | 0.42 | 0.37 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 0.67 | 0.72 | 0.68 | 0.65 | 0.54 | 0.52 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | 0.05 | 0.02 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.54 | 0.60 | 0.58 | 0.56 | 0.51 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.46 | 0.49 | 0.47 | — | |
Based on: 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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,411 ÷ 53,764 = 0.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Cisco Systems Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Cisco Systems Inc., debt to assets calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Total assets | 101,852) | 94,002) | 97,497) | 94,853) | 97,793) | 108,784) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.08 | 0.10 | 0.12 | 0.15 | 0.25 | 0.24 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Apple Inc. | 0.32 | 0.34 | 0.36 | 0.35 | 0.32 | 0.31 | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | 0.02 | 0.01 | 0.07 | |
| Debt to Assets, Sector | |||||||
| Technology Hardware & Equipment | 0.26 | 0.29 | 0.30 | 0.30 | 0.30 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.31 | — | |
Based on: 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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,391 ÷ 101,852 = 0.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cisco Systems Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Cisco Systems Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 1,733) | 1,099) | 2,508) | 3,005) | 10,191) | 5,238) | |
| Long-term debt, excluding current portion | 6,658) | 8,416) | 9,018) | 11,578) | 14,475) | 20,331) | |
| Total debt | 8,391) | 9,515) | 11,526) | 14,583) | 24,666) | 25,569) | |
| Operating lease liabilities (included in Other current liabilities) | 313) | 322) | 337) | 341) | —) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 707) | 724) | 831) | 661) | —) | —) | |
| Total debt (including operating lease liability) | 9,411) | 10,561) | 12,694) | 15,585) | 24,666) | 25,569) | |
| Total assets | 101,852) | 94,002) | 97,497) | 94,853) | 97,793) | 108,784) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.09 | 0.11 | 0.13 | 0.16 | 0.25 | 0.24 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 0.35 | 0.38 | 0.39 | 0.38 | 0.32 | 0.31 | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | 0.03 | 0.01 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.29 | 0.31 | 0.33 | 0.32 | 0.30 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.32 | — | |
Based on: 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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,411 ÷ 101,852 = 0.09
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Cisco Systems Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Cisco Systems Inc., financial leverage calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 101,852) | 94,002) | 97,497) | 94,853) | 97,793) | 108,784) | |
| Equity | 44,353) | 39,773) | 41,275) | 37,920) | 33,571) | 43,204) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.30 | 2.36 | 2.36 | 2.50 | 2.91 | 2.52 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Apple Inc. | 5.67 | 6.96 | 5.56 | 4.96 | 3.74 | 3.41 | |
| Arista Networks Inc. | 1.38 | 1.39 | 1.44 | 1.43 | 1.45 | — | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 | 2.10 | |
| Financial Leverage, Sector | |||||||
| Technology Hardware & Equipment | 4.05 | 4.72 | 4.17 | 3.95 | 3.46 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.72 | 2.90 | 2.87 | — | |
Based on: 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).
1 2023 Calculation
Financial leverage = Total assets ÷ Equity
= 101,852 ÷ 44,353 = 2.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cisco Systems Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Interest Coverage
Cisco Systems Inc., interest coverage calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 12,613) | 11,812) | 10,591) | 11,214) | 11,621) | 110) | |
| Add: Income tax expense | 2,705) | 2,665) | 2,671) | 2,756) | 2,950) | 12,929) | |
| Add: Interest expense | 427) | 360) | 434) | 585) | 859) | 943) | |
| Earnings before interest and tax (EBIT) | 15,745) | 14,837) | 13,696) | 14,555) | 15,430) | 13,982) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 36.87 | 41.21 | 31.56 | 24.88 | 17.96 | 14.83 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Apple Inc. | 29.92 | 41.64 | 42.29 | 24.35 | 19.38 | 23.50 | |
| Arista Networks Inc. | — | — | — | — | — | — | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 | 15.78 | |
| Interest Coverage, Sector | |||||||
| Technology Hardware & Equipment | 31.25 | 42.09 | 41.08 | 24.67 | 19.29 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.91 | 24.76 | 22.93 | 16.69 | 15.79 | — | |
Based on: 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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 15,745 ÷ 427 = 36.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cisco Systems Inc. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Fixed Charge Coverage
Cisco Systems Inc., fixed charge coverage calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 12,613) | 11,812) | 10,591) | 11,214) | 11,621) | 110) | |
| Add: Income tax expense | 2,705) | 2,665) | 2,671) | 2,756) | 2,950) | 12,929) | |
| Add: Interest expense | 427) | 360) | 434) | 585) | 859) | 943) | |
| Earnings before interest and tax (EBIT) | 15,745) | 14,837) | 13,696) | 14,555) | 15,430) | 13,982) | |
| Add: Operating lease expense | 425) | 390) | 399) | 428) | 433) | 442) | |
| Earnings before fixed charges and tax | 16,170) | 15,227) | 14,095) | 14,983) | 15,863) | 14,424) | |
| Interest expense | 427) | 360) | 434) | 585) | 859) | 943) | |
| Operating lease expense | 425) | 390) | 399) | 428) | 433) | 442) | |
| Fixed charges | 852) | 750) | 833) | 1,013) | 1,292) | 1,385) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 18.98 | 20.30 | 16.92 | 14.79 | 12.28 | 10.41 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Apple Inc. | 28.52 | 25.65 | 26.13 | 16.34 | 14.48 | 17.42 | |
| Arista Networks Inc. | 73.83 | 49.20 | 31.02 | 24.95 | 30.94 | — | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | 10.45 | 7.48 | 8.28 | |
| Fixed Charge Coverage, Sector | |||||||
| Technology Hardware & Equipment | 27.25 | 25.07 | 24.67 | 16.09 | 14.08 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.67 | 14.28 | 13.50 | 10.20 | 10.46 | — | |
Based on: 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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 16,170 ÷ 852 = 18.98
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Cisco Systems Inc. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |