CVS Health Corp (CVS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,586,000 | 8,196,000 | 12,945,000 | 9,408,000 | 7,854,000 |
| Short-term investments | US$ in thousands | 2,407,000 | 3,259,000 | 2,778,000 | 3,117,000 | 3,000,000 |
| Total current liabilities | US$ in thousands | 84,609,000 | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 |
| Cash ratio | 0.13 | 0.14 | 0.23 | 0.18 | 0.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,586,000K
+ $2,407,000K)
÷ $84,609,000K
= 0.13
The cash ratio of CVS Health Corp has shown some fluctuations over the past five years.
As of December 31, 2020, the cash ratio stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities at that time. This ratio remained stable at 0.18 by the end of 2021.
In the following years, there were slight variations in the cash ratio. By December 31, 2022, the ratio had increased to 0.23, suggesting an improvement in the company's ability to cover its short-term obligations with cash on hand.
However, there was a notable decline in the cash ratio by the end of 2023, dropping to 0.14. This decrease may indicate a potential liquidity challenge or a change in the company's cash position compared to the previous year.
By the end of December 31, 2024, the cash ratio further declined to 0.13, highlighting a continued decrease in the amount of cash available relative to short-term liabilities.
Overall, while there have been fluctuations in CVS Health Corp's cash ratio over the period, it is essential for investors and analysts to closely monitor the trend to assess the company's liquidity position effectively.
Peer comparison
Dec 31, 2024