CVS Health Corp (CVS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 | 256,776,000 |
| Receivables | US$ in thousands | 39,121,000 | 30,725,000 | 27,820,000 | 23,940,000 | 21,998,000 |
| Receivables turnover | 9.15 | 10.50 | 10.50 | 11.22 | 11.67 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $357,776,000K ÷ $39,121,000K
= 9.15
The receivables turnover ratio for CVS Health Corp has exhibited a decreasing trend over the past five years, declining from 13.09 in 2019 to 10.16 in 2023. This indicates that the company's efficiency in collecting receivables from customers has slightly decreased over the period. A lower receivables turnover ratio may suggest a longer collection period for receivables, which could potentially impact the company's cash flow and liquidity position. It is advisable for CVS Health Corp to monitor and improve its accounts receivable management to enhance efficiency in collecting outstanding payments from customers.
Peer comparison
Dec 31, 2023