CVS Health Corp (CVS)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.39 | 8.60 | 9.81 | 10.10 | 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 | |
| DSO | days | 43.50 | 42.46 | 37.20 | 36.15 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.39
= 43.50
Days Sales Outstanding (DSO) is a key financial ratio that provides insight into how efficiently a company is managing its accounts receivable. For CVS Health Corp, the DSO has shown some fluctuations over the past few years.
From March 31, 2020, to December 31, 2020, CVS Health Corp managed to reduce its DSO from 36.06 days to 32.52 days, indicating a more efficient collection of sales. However, the DSO increased to 35.42 days by March 31, 2021, before trended downwards to 34.76 days by December 31, 2021.
During the next few years, the DSO continued to vary, with values ranging from 33.54 days to 43.50 days by December 31, 2024. The upward trend in DSO from September 30, 2024, to December 31, 2024, may imply potential issues with collecting receivables promptly or could be due to changes in the company's sales policies.
Overall, analyzing the DSO trends of CVS Health Corp can help stakeholders assess the efficiency of the company in collecting outstanding sales revenues and monitor any potential liquidity or credit risks.
Peer comparison
Dec 31, 2024
See also:
CVS Health Corp Average Receivable Collection Period (Quarterly Data)