CVS Health Corp (CVS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 67,858,000 | 65,633,000 | 60,008,000 | 56,369,000 | 50,302,000 |
| Total current liabilities | US$ in thousands | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 | 53,303,000 |
| Current ratio | 0.86 | 0.95 | 0.88 | 0.91 | 0.94 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $67,858,000K ÷ $79,189,000K
= 0.86
The current ratio of CVS Health Corp has shown some fluctuation over the past five years. In 2023, the current ratio decreased to 0.86 from 0.94 in 2022, indicating a less favorable liquidity position compared to the previous year. The current ratio of 0.86 means that CVS Health Corp's current assets are 86% of its current liabilities.
Although the current ratio decreased in 2023, it has been below 1 for the past three years, suggesting that the company may have challenges in meeting its short-term obligations with its current assets alone. A current ratio below 1 typically raises concerns about a company's ability to cover its short-term liabilities.
It is important for CVS Health Corp to closely monitor its current ratio and take steps to improve it, such as increasing current assets or decreasing current liabilities. This will help enhance the company's liquidity position and ensure it can cover its short-term obligations effectively.
Peer comparison
Dec 31, 2023