CVS Health Corp (CVS)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 267,535,000 | 176,447,000 | 175,445,000 | 175,488,000 |
| Payables | US$ in thousands | 14,897,000 | 14,874,000 | 13,367,000 | 12,527,000 | 14,838,000 | 13,925,000 | 13,238,000 | 12,738,000 | 12,544,000 | 12,696,000 | 11,052,000 | 10,804,000 | 11,138,000 | 11,677,000 | 9,919,000 | 10,223,000 | 10,492,000 | 9,442,000 | 9,160,000 | 8,290,000 |
| Payables turnover | 26.50 | 24.09 | 26.65 | 28.05 | 23.26 | 23.39 | 24.05 | 24.55 | 24.57 | 22.61 | 25.58 | 25.86 | 25.04 | 23.31 | 27.40 | 26.46 | 25.50 | 18.69 | 19.15 | 21.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $394,775,000K ÷ $14,897,000K
= 26.50
The payables turnover ratio for CVS Health Corp has been relatively consistent over the past eight quarters, ranging from a low of 13.27 in Q4 2022 to a high of 16.19 in Q1 2023. This ratio measures how efficiently the company pays its suppliers and creditors.
A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which may be a sign of strong liquidity and good relationships with suppliers. On the other hand, a lower ratio may suggest that the company is taking longer to pay its bills, potentially leading to strained relationships with suppliers or cash flow issues.
Overall, CVS Health Corp's payables turnover ratio has shown stability and efficiency in managing its payables over the past two years, with the ratio hovering around the mid-teens. Investors and analysts should continue to monitor this ratio to ensure that the company maintains a healthy balance between managing its cash flow and maintaining good relationships with suppliers.
Peer comparison
Dec 31, 2023