CVS Health Corp (CVS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 372,809,000 | 368,912,000 | 363,248,000 | 360,935,000 | 357,776,000 | 347,809,000 | 339,204,000 | 330,919,000 | 322,467,000 | 315,225,000 | 307,860,000 | 299,840,000 | 292,111,000 | 285,061,000 | 278,323,000 | 271,048,000 | 268,706,000 | 266,041,000 | 263,795,000 | 261,885,000 |
| Receivables | US$ in thousands | 44,435,000 | 42,911,000 | 37,019,000 | 35,747,000 | 39,121,000 | 35,530,000 | 32,153,000 | 30,651,000 | 30,725,000 | 28,964,000 | 29,741,000 | 28,981,000 | 27,820,000 | 28,050,000 | 26,410,000 | 26,305,000 | 23,940,000 | 26,987,000 | 25,321,000 | 25,875,000 |
| Receivables turnover | 8.39 | 8.60 | 9.81 | 10.10 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $372,809,000K ÷ $44,435,000K
= 8.39
The receivables turnover ratio of CVS Health Corp has shown variability over the past few years. The ratio indicates how efficiently the company is able to collect outstanding receivables from its customers during a certain period. A higher ratio generally signifies that the company is more effective in collecting payments from its customers.
Based on the data provided, the receivables turnover ratio has fluctuated between 8.39 and 11.22 from December 31, 2020, to December 31, 2024. The highest ratio of 11.22 was recorded on December 31, 2020, indicating that CVS Health Corp was particularly efficient in collecting receivables at that time. However, the ratio declined to 8.39 on December 31, 2024, reflecting a potential slowdown in the collection of receivables.
Overall, the average receivables turnover ratio for the period under review is approximately 10.34. It is essential for CVS Health Corp to closely monitor this ratio as a declining trend could indicate potential issues in collecting receivables efficiently, which may impact the company's working capital management and liquidity position.
Peer comparison
Dec 31, 2024