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.
Peer comparison
Dec 31, 2024