Aureus
BGood

Cisco Systems, Inc.(CSCO)

B

Financial data as of Jul 31, 2025Declining · Technology

FCF Margin23.5%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 / FCF2.1xManageable debt load
Current Ratio1.00Tight short-term liquidity
YoY FCF Growth-16.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (23.5%, 2.1x)
→
-1Current ratio below 1.0 (1.00)
→
-0.5Moderate decline but healthy margin (-16.1% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Exceptional FCF margin (23.5%)
  • Excellent cash conversion (139%)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($19.7B)
  • Current ratio below 1.0 — tight short-term liquidity
  • FCF trend declining (-16.1% YoY) but margin still healthy

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin23.5%
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 / FCF2.1xManageable debt load
Current Ratio1.00Tight liquidity
Debt / Equity0.60Low leverage

Quarterly FCF Trend

-16.1% YoYDeclining (-16.1%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

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 Margin23.5%
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 / FCF2.1x
YoY FCF Growth-16.1%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJul 31, 2025
GradeB
Data SourceYahoo Finance