CVS Health Corp (CVS)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 372,809,000 | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 |
| Receivables | US$ in thousands | 44,435,000 | 39,121,000 | 30,725,000 | 27,820,000 | 23,940,000 |
| Receivables turnover | 8.39 | 9.15 | 10.50 | 10.50 | 11.22 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $372,809,000K ÷ $44,435,000K
= 8.39
The receivables turnover ratio for CVS Health Corp has been showing a decreasing trend over the years. In December 31, 2020, the ratio was 11.22, indicating that the company collected its accounts receivable approximately 11.22 times during that year. However, by December 31, 2024, the ratio had decreased to 8.39, suggesting a slowdown in the collection of receivables.
A declining receivables turnover ratio could imply that CVS Health Corp is taking longer to collect payments from its customers, potentially indicating issues with credit policies, collection efficiency, or a deterioration in customer payment behavior.
It is important for CVS Health Corp to closely monitor and manage its accounts receivable turnover to ensure timely collection of outstanding payments and to maintain healthy cash flows for the sustainability and profitability of the business.
Peer comparison
Dec 31, 2024