Aureus
BGood

Cisco Systems, Inc.(CSCO)

B

Financial data as of Jul 31, 2026Improving · Technology

FCF Margin14.1%Free Cash Flow / Revenue
Cash Conversion106.9%Operating CF / Net Income
Free Cash Flow$12.8B
Revenue$63.3B
Net Cash-$22.3BNet debt position
Debt / FCF3.3xElevated debt burden
Current Ratio0.93Tight short-term liquidity
YoY FCF Growth+32.6%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 (14.1%, 3.3x)
→
-1Current ratio below 1.0 (0.93)
→
+1Strong YoY FCF growth (32.6% YoY)
→
+0.25Solid revenue growth (17.6% YoY)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (14.1%)
  • Excellent cash conversion (107%)
  • Strong YoY FCF growth (+32.6%)

Concerns

  • Net debt position ($22.3B) — 3.3x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity
SBC-adjusted FCF used — $3.8B stock-based compensation (30% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.1%
Net Margin21.0%
Operating CF Margin22.4%
CapEx Ratio2.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$22.3BNet debt position
Debt / FCF3.3xElevated debt burden
Current Ratio0.93Tight liquidity
Debt / Equity0.59Low leverage

Quarterly FCF Trend

+32.6% YoYImproving (+32.6%)

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$12.8B
Revenue$63.3B
Net Income$13.3B
Operating Cash Flow$14.2B
Capital Expenditure$1.4B
FCF Margin14.1%
Cash Conversion Rate106.9%
Net Margin21.0%
Total Debt$29.5B
Total Cash$7.2B
Net Cash-$22.3B
Current Ratio0.93
Debt / Equity0.59
Debt / FCF3.3x
YoY FCF Growth+32.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJul 31, 2026
GradeB
Data SourceYahoo Finance

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