CVS Health Corp (CVS)
Payables 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 |
| Payables | US$ in thousands | 15,892,000 | 15,713,000 | 14,416,000 | 13,717,000 | 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 |
| Payables turnover | 24.24 | 31.93 | 30.72 | 28.52 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $385,293,000K ÷ $15,892,000K
= 24.24
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its suppliers within a certain period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could signify better cash flow management and liquidity.
Based on the data provided for CVS Health Corp, we see fluctuations in the payables turnover ratio over the quarters. The ratio ranged from a low of 22.61 in September 30, 2021, to a high of 31.93 in September 30, 2024. Generally, the trend of the payables turnover ratio for CVS Health Corp shows some variability but maintains levels that suggest the company is efficiently managing its accounts payable and payments to suppliers.
It is important to note that a very high or very low payables turnover ratio may indicate potential issues. A very high ratio may suggest that the company is not taking advantage of credit terms with its suppliers, impacting cash flow, while a very low ratio may indicate that the company is taking longer to pay its suppliers, possibly straining relationships. Overall, a stable and moderate payables turnover ratio, as demonstrated by CVS Health Corp, is indicative of balanced and effective management of accounts payable.
Peer comparison
Dec 31, 2024