Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Cisco Systems Inc. (NASDAQ:CSCO)

Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

Cisco Systems Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Turnover Ratios
Inventory turnover 13.91 10.14 11.00 15.03 11.97 12.18
Receivables turnover 9.45 8.88 9.33 8.42 9.20 9.14
Payables turnover 9.34 9.83 12.84 17.32 17.64 18.77
Working capital turnover 3.24 1.42 0.86 0.92 0.93 1.00
Average No. Days
Average inventory processing period 26 36 33 24 30 30
Add: Average receivable collection period 39 41 39 43 40 40
Operating cycle 65 77 72 67 70 70
Less: Average payables payment period 39 37 28 21 21 19
Cash conversion cycle 26 40 44 46 49 51

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Cisco Systems Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Cisco Systems Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Cisco Systems Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Cisco Systems Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Cisco Systems Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Cisco Systems Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Cisco Systems Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Cisco Systems Inc.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Cisco Systems Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data (US$ in millions)
Cost of sales 19,238  18,724  17,781  18,287  19,480  19,373 
Inventories 1,383  1,846  1,616  1,217  1,627  1,591 
Short-term Activity Ratio
Inventory turnover1 13.91 10.14 11.00 15.03 11.97 12.18
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 3.93 4.77 4.74 4.36 4.29
Analog Devices Inc. 3.24 3.35 3.71 3.17 2.85
Apple Inc. 39.40 41.39 29.05 61.62 59.64 53.18
Applied Materials Inc. 2.37 2.54 2.73 3.08 3.11 3.34
Broadcom Inc. 11.57 9.00 6.31 5.21 6.24 4.61
Intel Corp. 3.41 3.74 3.39 4.18 4.00
Lam Research Corp. 3.44 3.15 3.58 3.36 3.15
Micron Technology Inc. 2.48 3.48 3.81 3.42 4.69 4.45
NVIDIA Corp. 2.89 4.89 3.59 5.26 4.31
Qualcomm Inc. 6.14 6.05 4.81 6.27 6.96 7.33
Texas Instruments Inc. 2.61 2.48 2.73 2.87 3.22
Inventory Turnover, Sector
Technology Hardware & Equipment 8.53 9.26 8.47 10.48 11.52
Inventory Turnover, Industry
Technology 12.36 12.36 11.49 13.63 13.76

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 19,238 ÷ 1,383 = 13.91

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Cisco Systems Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Receivables Turnover

Cisco Systems Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data (US$ in millions)
Revenue 51,904  49,330  48,005  49,247  49,161  47,142 
Accounts receivable, net of allowance for doubtful accounts 5,491  5,554  5,146  5,847  5,344  5,157 
Short-term Activity Ratio
Receivables turnover1 9.45 8.88 9.33 8.42 9.20 9.14
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 3.62 5.24 13.32 13.74 7.49
Analog Devices Inc. 9.43 9.69 7.41 7.16 7.36
Apple Inc. 11.35 11.45 12.82 13.69 13.87 10.47
Applied Materials Inc. 5.77 6.73 6.22 4.75 5.55 5.43
Broadcom Inc. 6.93 6.27 7.20 6.07 6.70 5.46
Intel Corp. 9.40 10.54 11.19 12.66 11.56
Lam Research Corp. 6.63 5.09 4.79 4.66 4.81
Micron Technology Inc. 8.43 6.01 5.82 7.02 7.40 6.48
NVIDIA Corp. 8.23 7.68 8.37 9.92 9.88
Qualcomm Inc. 23.21 7.98 6.23 10.74 13.02 11.21
Texas Instruments Inc. 13.39 13.08 11.71 10.55 11.16
Receivables Turnover, Sector
Technology Hardware & Equipment 9.92 9.43 10.04 10.80 11.34
Receivables Turnover, Industry
Technology 7.50 7.54 7.69 8.07 8.64

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= 51,904 ÷ 5,491 = 9.45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Cisco Systems Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Payables Turnover

Cisco Systems Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data (US$ in millions)
Cost of sales 19,238  18,724  17,781  18,287  19,480  19,373 
Accounts payable 2,059  1,904  1,385  1,056  1,104  1,032 
Short-term Activity Ratio
Payables turnover1 9.34 9.83 12.84 17.32 17.64 18.77
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 3.91 7.63 9.13 7.44 10.43
Analog Devices Inc. 8.78 7.54 8.65 6.97 6.75
Apple Inc. 3.50 2.93 2.88 3.52 3.95 3.72
Applied Materials Inc. 8.58 9.47 8.47 7.77 8.67 8.53
Broadcom Inc. 11.83 12.47 8.26 5.79 5.30 4.64
Intel Corp. 7.23 7.09 8.09 9.37 10.02
Lam Research Corp. 14.06 11.57 9.49 9.38 9.91
Micron Technology Inc. 7.58 7.39 8.92 8.34 10.76 9.76
NVIDIA Corp. 8.89 6.53 5.87 7.43 7.10
Qualcomm Inc. 6.29 5.61 4.97 5.25 7.98 4.90
Texas Instruments Inc. 13.45 11.52 11.47 12.95 14.09
Payables Turnover, Sector
Technology Hardware & Equipment 4.54 3.94 3.94 4.65 5.15
Payables Turnover, Industry
Technology 5.54 4.82 4.80 5.41 5.72

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 19,238 ÷ 2,059 = 9.34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Cisco Systems Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Cisco Systems Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data (US$ in millions)
Current assets 47,755  61,837  83,703  78,719  76,283  67,114 
Less: Current liabilities 31,712  27,035  27,583  24,911  23,623  19,809 
Working capital 16,043  34,802  56,120  53,808  52,660  47,305 
 
Revenue 51,904  49,330  48,005  49,247  49,161  47,142 
Short-term Activity Ratio
Working capital turnover1 3.24 1.42 0.86 0.92 0.93 1.00
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 3.01 4.16 4.69 3.61 4.35
Analog Devices Inc. 12.57 8.78 6.76 0.82 1.16
Apple Inc. 4.56 18.35 8.24 7.74 26.66 35.96
Applied Materials Inc. 2.54 2.58 1.65 2.29 1.77 2.19
Broadcom Inc. 7.49 3.08 1.33 3.27 2.57 1.51
Intel Corp. 8.06 5.83 5.20 3.91 2.24
Lam Research Corp. 1.56 1.85 1.29 0.87 1.45
Micron Technology Inc. 2.31 2.95 2.85 2.66 3.45 3.01
NVIDIA Corp. 1.27 1.20 1.02 1.35 0.97
Qualcomm Inc. 3.10 3.70 0.68 1.50 1.58 1.62
Texas Instruments Inc. 2.17 2.81 2.31 2.57 2.88
Working Capital Turnover, Sector
Technology Hardware & Equipment 3.87 4.64 2.54 2.83 3.24
Working Capital Turnover, Industry
Technology 2.42 2.24 1.73 1.87 2.10

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Working capital turnover = Revenue ÷ Working capital
= 51,904 ÷ 16,043 = 3.24

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Cisco Systems Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Average Inventory Processing Period

Cisco Systems Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data
Inventory turnover 13.91 10.14 11.00 15.03 11.97 12.18
Short-term Activity Ratio (no. days)
Average inventory processing period1 26 36 33 24 30 30
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 93 77 77 84 85
Analog Devices Inc. 113 109 98 115 128
Apple Inc. 9 9 13 6 6 7
Applied Materials Inc. 154 144 134 119 117 109
Broadcom Inc. 32 41 58 70 58 79
Intel Corp. 107 98 108 87 91
Lam Research Corp. 106 116 102 109 116
Micron Technology Inc. 147 105 96 107 78 82
NVIDIA Corp. 126 75 102 69 85
Qualcomm Inc. 59 60 76 58 52 50
Texas Instruments Inc. 140 147 134 127 113
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 43 39 43 35 32
Average Inventory Processing Period, Industry
Technology 30 30 32 27 27

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 13.91 = 26

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Cisco Systems Inc.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Average Receivable Collection Period

Cisco Systems Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data
Receivables turnover 9.45 8.88 9.33 8.42 9.20 9.14
Short-term Activity Ratio (no. days)
Average receivable collection period1 39 41 39 43 40 40
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 101 70 27 27 49
Analog Devices Inc. 39 38 49 51 50
Apple Inc. 32 32 28 27 26 35
Applied Materials Inc. 63 54 59 77 66 67
Broadcom Inc. 53 58 51 60 55 67
Intel Corp. 39 35 33 29 32
Lam Research Corp. 55 72 76 78 76
Micron Technology Inc. 43 61 63 52 49 56
NVIDIA Corp. 44 48 44 37 37
Qualcomm Inc. 16 46 59 34 28 33
Texas Instruments Inc. 27 28 31 35 33
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 37 39 36 34 32
Average Receivable Collection Period, Industry
Technology 49 48 47 45 42

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.45 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Cisco Systems Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data
Average inventory processing period 26 36 33 24 30 30
Average receivable collection period 39 41 39 43 40 40
Short-term Activity Ratio
Operating cycle1 65 77 72 67 70 70
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 194 147 104 111 134
Analog Devices Inc. 152 147 147 166 178
Apple Inc. 41 41 41 33 32 42
Applied Materials Inc. 217 198 193 196 183 176
Broadcom Inc. 85 99 109 130 113 146
Intel Corp. 146 133 141 116 123
Lam Research Corp. 161 188 178 187 192
Micron Technology Inc. 190 166 159 159 127 138
NVIDIA Corp. 170 123 146 106 122
Qualcomm Inc. 75 106 135 92 80 83
Texas Instruments Inc. 167 175 165 162 146
Operating Cycle, Sector
Technology Hardware & Equipment 80 78 79 69 64
Operating Cycle, Industry
Technology 79 78 79 72 69

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 26 + 39 = 65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Cisco Systems Inc.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Average Payables Payment Period

Cisco Systems Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data
Payables turnover 9.34 9.83 12.84 17.32 17.64 18.77
Short-term Activity Ratio (no. days)
Average payables payment period1 39 37 28 21 21 19
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 93 48 40 49 35
Analog Devices Inc. 42 48 42 52 54
Apple Inc. 104 125 127 104 92 98
Applied Materials Inc. 43 39 43 47 42 43
Broadcom Inc. 31 29 44 63 69 79
Intel Corp. 51 51 45 39 36
Lam Research Corp. 26 32 38 39 37
Micron Technology Inc. 48 49 41 44 34 37
NVIDIA Corp. 41 56 62 49 51
Qualcomm Inc. 58 65 73 70 46 75
Texas Instruments Inc. 27 32 32 28 26
Average Payables Payment Period, Sector
Technology Hardware & Equipment 80 93 93 79 71
Average Payables Payment Period, Industry
Technology 66 76 76 67 64

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.34 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Cisco Systems Inc.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

Cisco Systems Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Jul 27, 2019 Jul 28, 2018 Jul 29, 2017 Jul 30, 2016 Jul 25, 2015 Jul 26, 2014
Selected Financial Data
Average inventory processing period 26 36 33 24 30 30
Average receivable collection period 39 41 39 43 40 40
Average payables payment period 39 37 28 21 21 19
Short-term Activity Ratio
Cash conversion cycle1 26 40 44 46 49 51
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 101 99 64 62 99
Analog Devices Inc. 110 99 105 114 124
Apple Inc. -63 -84 -86 -71 -60 -56
Applied Materials Inc. 174 159 150 149 141 133
Broadcom Inc. 54 70 65 67 44 67
Intel Corp. 95 82 96 77 87
Lam Research Corp. 135 156 140 148 155
Micron Technology Inc. 142 117 118 115 93 101
NVIDIA Corp. 129 67 84 57 71
Qualcomm Inc. 17 41 62 22 34 8
Texas Instruments Inc. 140 143 133 134 120
Cash Conversion Cycle, Sector
Technology Hardware & Equipment 0 -15 -14 -10 -7
Cash Conversion Cycle, Industry
Technology 13 2 3 5 5

Based on: 10-K (filing date: 2019-09-05), 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 26 + 3939 = 26

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Cisco Systems Inc.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.