CVS Health Corp (CVS)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 357,776,000 | 347,809,000 | 339,204,000 | 330,919,000 | 322,467,000 | 315,225,000 | 307,860,000 | 299,840,000 | 292,111,000 | 285,061,000 | 278,323,000 | 271,048,000 | 268,706,000 | 266,041,000 | 263,795,000 | 261,885,000 | 256,776,000 | 244,311,000 | 226,991,000 | 210,482,000 |
| Property, plant and equipment | US$ in thousands | 11,954,000 | 13,022,000 | 13,001,000 | 12,872,000 | 12,873,000 | 12,626,000 | 12,764,000 | 12,844,000 | 12,896,000 | 12,771,000 | 12,664,000 | 12,611,000 | 12,606,000 | 12,349,000 | 12,221,000 | 12,146,000 | 12,044,000 | 11,651,000 | 11,483,000 | 11,348,000 |
| Fixed asset turnover | 29.93 | 26.71 | 26.09 | 25.71 | 25.05 | 24.97 | 24.12 | 23.34 | 22.65 | 22.32 | 21.98 | 21.49 | 21.32 | 21.54 | 21.59 | 21.56 | 21.32 | 20.97 | 19.77 | 18.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $357,776,000K ÷ $11,954,000K
= 29.93
The fixed asset turnover ratio for CVS Health Corp has shown a consistent upward trend over the past eight quarters, indicating improved efficiency in generating revenue relative to its investment in fixed assets. The ratio has steadily increased from 23.34 in Q1 2022 to 27.14 in Q4 2023, demonstrating the company's ability to utilize its fixed assets more effectively to drive sales.
This steady improvement suggests that CVS Health Corp is utilizing its fixed assets efficiently to generate revenue, which is a positive sign for investors and stakeholders. A higher fixed asset turnover ratio indicates that the company is effectively managing its resources and generating more revenue per dollar invested in fixed assets.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on the operational performance of CVS Health Corp and signifies efficient asset utilization in its core business activities.
Peer comparison
Dec 31, 2023