Aureus
DWarning

Cisco Systems, Inc.(CSCO)

D

Financial data as of Jul 31, 2025Declining · Technology

FCF Margin17.0%Free Cash Flow / Revenue
Cash Conversion139.4%Operating CF / Net Income
Free Cash Flow$13.3B
Revenue$56.7B
Net Cash-$19.7BNet debt position
Debt / FCF2.9xManageable debt load
Current Ratio1.00Tight short-term liquidity
YoY FCF Growth-45.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (17.0%, 2.9x)
→
-0.5Current ratio below 1.0 (1.00) (reduced — strong FCF covers short-term obligations)
→
-1Significant YoY FCF decline (-45.5%)
→
FinalD

Analysis Summary

Strengths

  • Strong FCF margin (17.0%)
  • Excellent cash conversion (139%)

Concerns

  • Net debt position ($19.7B) — 2.9x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-45.5%)
SBC-adjusted FCF used — $3.6B stock-based compensation (27% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.0%
Net Margin18.0%
Operating CF Margin25.1%
CapEx Ratio1.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$19.7BNet debt position
Debt / FCF2.9xManageable debt load
Current Ratio1.00Tight liquidity
Debt / Equity0.60Low leverage

Quarterly FCF Trend

-45.5% YoYDeclining (-45.5%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCisco Systems, Inc.
SectorTechnology
Free Cash Flow$13.3B
Revenue$56.7B
Net Income$10.2B
Operating Cash Flow$14.2B
Capital Expenditure$905.0M
FCF Margin17.0%
Cash Conversion Rate139.4%
Net Margin18.0%
Total Debt$28.1B
Total Cash$8.3B
Net Cash-$19.7B
Current Ratio1.00
Debt / Equity0.60
Debt / FCF2.9x
YoY FCF Growth-45.5%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJul 31, 2025
GradeD
Data SourceYahoo Finance

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