CVS Health Corp (CVS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 394,406,000 | 345,066,000 | 308,255,000 | 278,888,000 | 267,544,000 |
| Payables | US$ in thousands | 14,897,000 | 14,838,000 | 12,544,000 | 11,138,000 | 10,492,000 |
| Payables turnover | 26.48 | 23.26 | 24.57 | 25.04 | 25.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $394,406,000K ÷ $14,897,000K
= 26.48
The payables turnover ratio measures how efficiently CVS Health Corp is managing its accounts payable by calculating the number of times the company pays off its suppliers in a given period. A higher payables turnover ratio indicates that CVS Health Corp is paying its suppliers more frequently.
Analyzing the data provided:
- The payables turnover ratio for CVS Health Corp has fluctuated over the past five years, ranging from 13.27 to 15.13.
- The trend shows a slight decline in payables turnover from 2019 to 2022, but then a slight increase in 2023.
- In 2023, the payables turnover ratio increased to 14.57, indicating that CVS Health Corp paid off its suppliers approximately 14.57 times during the year.
- Despite the fluctuations, the payables turnover ratios for CVS Health Corp over the past five years suggest that the company effectively manages its accounts payable and maintains a relatively stable payment relationship with its suppliers.
Overall, the payables turnover ratio analysis indicates that CVS Health Corp efficiently manages its payment cycles with suppliers and demonstrates consistency in its accounts payable management over the years.
Peer comparison
Dec 31, 2023