Cisco Systems, Inc. — Earnings Quality Grade C
CSCO · Technology
Some red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change -2 days YoY
AR growth 0.2% vs revenue growth 5.3%
Revenue 5.3%, CFFO 30.5%. Cash follows revenue
Expense Quality
Inventory -6.2% vs COGS 4.7%. Normal
CapEx growth 35.1% is >2x revenue growth 5.3%
SG&A/Gross Profit = 37.9%. Normal
Gross margin 64.9%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.39. Profits backed by cash
FCF $13.3B, FCF/NI = 1.31
Accruals ratio = -3.3%. Low accruals
Cash $16.1B covers 57% of debt $28.1B
Balance Sheet Health
Goodwill+Intangibles $68.3B = 146% of equity. Over 50%
Debt/EBITDA = 1.8x. Healthy
Other assets 1.9% vs revenue 5.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.63 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25