CVS Health Corp (CVS)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 15.27 | 11.01 | 11.31 | 11.36 | |
| DOH | days | 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 | 23.90 | 33.16 | 32.27 | 32.13 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.90
= 16.67
The days of inventory on hand (DOH) for CVS Health Corp have shown a slight decrease over the past two quarters. In Q4 2023, the company had 30.30 days of inventory on hand, compared to 31.00 days in Q3 2023. This indicates that CVS has been able to manage its inventory more efficiently in the most recent quarter.
Looking at a longer timeframe, there has been a general downward trend in the DOH metric over the past year. In Q4 2022, the DOH was 35.39 days, which has steadily declined to 30.30 days in Q4 2023. This decrease suggests that CVS has improved its inventory turnover and is carrying less excess inventory on hand, which could lead to lower carrying costs and potentially higher profits.
Overall, the downward trend in DOH indicates that CVS Health Corp has been effectively managing its inventory levels, potentially enhancing its operational efficiency and financial performance. Further monitoring of this metric will be important to assess if the trend continues and to evaluate its impact on the company's overall operations.
Peer comparison
Dec 31, 2023
See also:
CVS Health Corp Average Inventory Processing Period (Quarterly Data)