CVS Health Corp (CVS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 68,645,000 | 67,858,000 | 65,633,000 | 60,008,000 | 56,369,000 |
| Total current liabilities | US$ in thousands | 84,609,000 | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 |
| Current ratio | 0.81 | 0.86 | 0.95 | 0.88 | 0.91 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $68,645,000K ÷ $84,609,000K
= 0.81
The current ratio, calculated as current assets divided by current liabilities, is an important liquidity metric that indicates a company's ability to meet its short-term obligations.
Based on the data provided for CVS Health Corp, the trend of the current ratio from December 31, 2020 to December 31, 2024 shows some fluctuations.
- The current ratio decreased from 0.91 in 2020 to 0.88 in 2021, suggesting a slight decline in the company's short-term liquidity position.
- However, it improved to 0.95 in 2022, indicating a better ability to cover current liabilities with current assets.
- Subsequently, the ratio decreased to 0.86 in 2023 and further to 0.81 in 2024, which may raise concerns about the company's short-term liquidity position.
Overall, the decreasing trend in the current ratio over the years might indicate potential difficulties for CVS Health Corp in meeting its short-term financial obligations with its current assets. Further analysis and monitoring of the company's liquidity position and efficiency in managing its current assets and liabilities would be advisable.