CVS Health Corp (CVS)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.15 | 9.79 | 10.55 | 10.80 | 10.50 | 10.88 | 10.35 | 10.35 | 10.50 | 10.16 | 10.54 | 10.30 | 11.22 | 9.86 | 10.42 | 10.12 | 11.67 | 11.21 | 11.99 | 10.33 | |
| DSO | days | 39.91 | 37.29 | 34.60 | 33.81 | 34.78 | 33.54 | 35.26 | 35.28 | 34.76 | 35.92 | 34.63 | 35.42 | 32.52 | 37.03 | 35.04 | 36.06 | 31.27 | 32.56 | 30.43 | 35.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.15
= 39.91
To analyze CVS Health Corp's days of sales outstanding (DSO) trend, we can observe the following:
1. DSO Trend: The DSO has been fluctuating slightly over the last eight quarters, with a range between 30.47 days to 35.94 days. The trend shows a mild increase in the most recent quarters compared to earlier periods.
2. Seasonal Variations: The DSO appears to have variations between quarters, possibly indicating seasonal patterns in sales collection efficiency. The highest DSO was in Q4 2023, and the lowest was in Q2 2023.
3. Comparison with Previous Quarters: In comparison with the same quarter of the previous year, the DSO has generally increased, indicating a potential slowdown in collecting receivables compared to the previous year.
4. Overall Assessment: While the DSO trend is relatively stable, the recent uptick in DSO values suggests a need for CVS Health Corp to focus on improving its accounts receivable management and collection processes to optimize cash flow and operational efficiency.
In conclusion, based on the DSO analysis, CVS Health Corp may benefit from further evaluation and potential enhancements in its receivables management practices to maintain a healthy financial position.
Peer comparison
Dec 31, 2023
See also:
CVS Health Corp Average Receivable Collection Period (Quarterly Data)