CVS Health Corp (CVS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 21.28 | 28.43 | 27.56 | 23.93 | 21.90 | 19.96 | 20.61 | 19.24 | 18.08 | 18.03 | 18.32 | 17.22 | 17.36 | 16.50 | 16.65 | 15.86 | 15.08 | 15.57 | 16.45 | 15.94 | |
| DOH | days | 17.15 | 12.84 | 13.24 | 15.25 | 16.67 | 18.29 | 17.71 | 18.97 | 20.19 | 20.24 | 19.92 | 21.19 | 21.03 | 22.12 | 21.93 | 23.01 | 24.21 | 23.44 | 22.19 | 22.90 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.28
= 17.15
The days of inventory on hand (DOH) for CVS Health Corp has shown a decreasing trend over the years based on the provided data. As of December 31, 2024, the DOH was 17.15 days, which indicates that on average, CVS Health holds inventory for approximately 17 days before selling it.
The decreasing trend in DOH from 22.90 days on March 31, 2020, to 17.15 days on December 31, 2024 suggests that CVS Health has been managing its inventory more efficiently, either by improving inventory turnover or reducing excess inventory levels.
A lower DOH value generally indicates better inventory management, as it demonstrates the company's ability to sell its inventory more quickly, reducing the risk of obsolescence and improving cash flow. A more detailed analysis would be required to understand the specific factors driving this trend and evaluate the effectiveness of CVS Health's inventory management strategies.
Peer comparison
Dec 31, 2024
See also:
CVS Health Corp Average Inventory Processing Period (Quarterly Data)