10 March 2008

CSCO: Financial Analysis through January 2008 (Updated)

We previously posted an analysis of Cisco Systems' (CSCO) preliminary results for the January 2008 quarter. Cisco subsequently submitted a more complete quarterly report in a 10-Q filed with the SEC.

The additional data in the 10-Q did not affect the analysis results, but a recent tweak to our scoring algorithms had a small effect on the gauge scores, as shown below. For details, please see the earlier post.

49 points is a very good score, if somewhat short of definitive bullish sign. At current levels, the ratio of the share Price to the last four quarters of Cash Flow from Operations is about 14, for a Cash Flow yield of about 7 percent. It's true that Cash Flow isn't growing at the pace it did a year ago, but Cash Flow in the last four quarters was still 12 percent more than Cash Flow in the four prior quarters.

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