CVS Health Corp (CVS)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	15.27	11.01	11.31	11.36
Receivables turnover	9.15	9.79	10.55	10.80	10.50	10.88	10.35	10.35	10.50	10.16	10.54	10.30	11.22	9.86	10.42	10.12	11.67	11.21	11.99	10.33
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Inventory turnover for CVS Health Corp has shown a consistent increase over the past eight quarters, indicating an improvement in the efficiency of managing inventory levels. The company is able to sell and replace its inventory approximately 11 to 12 times a year.

Receivables turnover has been relatively stable with minor fluctuations over the same period. This suggests that CVS Health Corp has been efficient in collecting outstanding receivables, with an average turnover rate of around 11 to 12 times a year.

Payables turnover has also exhibited consistency, generally increasing quarter by quarter. This indicates that the company is paying its suppliers more frequently, with an average turnover rate of 14 times a year.

Unfortunately, there is no data available for the working capital turnover ratio, which could have provided insights into how effectively CVS Health Corp is generating revenue from its working capital resources.

Overall, based on the activity ratios analyzed, CVS Health Corp appears to be efficiently managing its inventory, receivables, and payables, which could positively impact its financial performance and cash flow management.

Average number of days

		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
Days of inventory on hand (DOH)	days	16.67	18.29	17.71	18.97	20.19	20.24	19.92	21.19	21.03	22.12	21.93	23.01	24.21	23.44	22.19	22.90	23.90	33.16	32.27	32.13
Days of sales outstanding (DSO)	days	39.91	37.29	34.60	33.81	34.78	33.54	35.26	35.28	34.76	35.92	34.63	35.42	32.52	37.03	35.04	36.06	31.27	32.56	30.43	35.34
Number of days of payables	days	13.77	15.15	13.69	13.01	15.70	15.61	15.18	14.87	14.85	16.14	14.27	14.11	14.58	15.66	13.32	13.79	14.31	19.53	19.06	17.24

For CVS Health Corp, the activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays off its payables.

Regarding inventory management, the Days of Inventory on Hand (DOH) has shown a decreasing trend over the past eight quarters, indicating an improvement in managing inventory levels. The company has been able to reduce the number of days it holds inventory on hand, which suggests better inventory turnover and potentially lower carrying costs.

In terms of receivables management, the Days of Sales Outstanding (DSO) metric has varied slightly over the quarters but generally remained within a stable range. This indicates that CVS Health Corp has been consistent in collecting payments from its customers within a reasonable timeframe, which is essential for maintaining cash flow and liquidity.

The Number of Days of Payables metric reflects the time the company takes to pay its suppliers. CVS Health Corp has shown a consistent and efficient approach to managing payables, with the number of days of payables remaining relatively stable and below the industry average. This implies that the company has maintained good relationships with its suppliers while effectively managing its cash flow.

Overall, based on the activity ratios analysis, CVS Health Corp appears to be effectively managing its working capital cycle by efficiently controlling inventory levels, collecting receivables, and managing payables.

Long-term

	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
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
Total asset turnover	1.43	1.38	1.36	1.38	1.41	1.36	1.34	1.29	1.25	1.21	1.20	1.18	1.16	1.14	1.12	1.14	1.15	1.11	1.04	0.96

The fixed asset turnover ratio for CVS Health Corp has been consistently increasing over the past eight quarters, indicating that the company is generating more revenue per dollar of fixed assets invested. This suggests that CVS Health Corp is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated slightly over the same period but has generally remained within a narrow range. This indicates that CVS Health Corp is generating a stable level of sales relative to its total assets.

Overall, the company's long-term activity ratios suggest that CVS Health Corp is efficiently utilizing both its fixed and total assets to generate revenue. The increasing trend in fixed asset turnover is particularly promising as it indicates improving efficiency in utilizing fixed assets for revenue generation.