CVS Health Corp (CVS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,196,000 | 12,945,000 | 9,408,000 | 7,854,000 | 5,683,000 |
| Short-term investments | US$ in thousands | 3,259,000 | 2,778,000 | 3,117,000 | 3,000,000 | 2,373,000 |
| Total current liabilities | US$ in thousands | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 | 53,303,000 |
| Cash ratio | 0.14 | 0.23 | 0.18 | 0.18 | 0.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,196,000K
+ $3,259,000K)
÷ $79,189,000K
= 0.14
The cash ratio for CVS Health Corp has shown a declining trend from 0.25 in December 2019 to 0.18 in December 2023. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
The decrease in the cash ratio may suggest that CVS Health Corp has been utilizing its cash reserves for investments, acquisitions, or other strategic initiatives, leading to a relatively lower proportion of cash available to cover immediate liabilities.
However, it is important to consider other factors such as the overall liquidity position, operating cash flows, and business strategy before making conclusions about the company's financial health solely based on the cash ratio. Further analysis and comparison with industry benchmarks would provide more insights into CVS Health Corp's liquidity management and financial performance.
Peer comparison
Dec 31, 2023