Cisco Systems Inc. (CSCO) 10-K Red Flags
Risk signals extracted deterministically from Cisco Systems Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (14)
- Leverage is building — debt rising while equity contracts: Long-term debt grew +139.6% while stockholders equity declined -3.6%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
- Going concern doubt: The term "going concern" appears in 3 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Material weakness in internal controls: The term "material weakness" appears in 18 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restate" "financial statements" appears in 11 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.58x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Gross margin expansion: Gross margin expanded +4.2%pp (from 68.4% to 72.6%), indicating improved pricing power, cost efficiency, or favorable product mix.
- Endogenous analysis: The combination of explicit "going concern" language in the filing with deteriorating cash flow or rising leverage is a severe warning signal — the company's own auditors have flagged doubt about the ability to continue as a going concern.
- 4 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Ongoing high-severity risk language: Going concern doubt, Material weakness in internal controls, Restatement of financial statements.
- Market cap $444.16B at $112.69 per share.
- Trailing P/E 36.71, P/S 9.02, P/B 9.09.
- Leverage is building — debt rising while equity contracts: Long-term debt grew +139.6% while stockholders equity declined -3.6%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
- Going concern doubt: The term "going concern" appears in 3 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest quarterly report (10-Q) filed May 19, 2026.
- 5 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Cisco Systems Inc.; broad institutional reporting.
- Recent filers include Tevis Investment Management, Tevis Investment Management, Tevis Investment Management.
- 10 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 10 recent 13G passive institutional ownership notices.
Full CSCO analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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