CVS Health Corp (CVS)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 385,293,000 | 501,756,000 | 442,818,000 | 391,179,000 | 394,775,000 | 358,275,000 | 356,282,000 | 351,364,000 | 345,066,000 | 325,651,000 | 318,365,000 | 312,751,000 | 308,255,000 | 287,099,000 | 282,660,000 | 279,408,000 | 278,888,000 | 272,152,000 | 271,732,000 | 270,520,000 |
| Inventory | US$ in thousands | 18,107,000 | 17,649,000 | 16,068,000 | 16,346,000 | 18,025,000 | 17,954,000 | 17,291,000 | 18,263,000 | 19,090,000 | 18,058,000 | 17,375,000 | 18,160,000 | 17,760,000 | 17,399,000 | 16,979,000 | 17,618,000 | 18,496,000 | 17,478,000 | 16,519,000 | 16,976,000 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $385,293,000K ÷ $18,107,000K
= 21.28
The inventory turnover of CVS Health Corp has shown a consistent upward trend over the past few years, indicating an improvement in the efficiency of managing its inventory. The ratio has increased steadily from 15.94 in March 2020 to 21.28 in December 2024.
A higher inventory turnover ratio suggests that CVS Health is selling its inventory more frequently, which can be beneficial in terms of cash flow and avoiding excess inventory holding costs. The company's ability to effectively turn over its inventory is important for optimizing operational efficiency and profitability.
The peak inventory turnover ratio of 28.43 in September 2024 indicates that CVS Health is managing its inventory exceptionally well during that period. However, it is also noteworthy that there was a slight decrease in the ratio in the following quarter, which could be due to seasonal factors or changes in business operations.
Overall, the trend of increasing inventory turnover ratios reflects positively on CVS Health's inventory management practices and indicates a healthy balance between maintaining optimal inventory levels and efficiently selling products.
Peer comparison
Dec 31, 2024
Dec 31, 2024