CVS Health Corp (CVS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 44,435,000 | 39,121,000 | 30,725,000 | 27,820,000 | 23,940,000 |
| Total current liabilities | US$ in thousands | 84,609,000 | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 |
| Quick ratio | 0.66 | 0.64 | 0.67 | 0.59 | 0.56 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,586,000K
+ $2,407,000K
+ $44,435,000K)
÷ $84,609,000K
= 0.66
The quick ratio of CVS Health Corp has shown a somewhat fluctuating trend over the past five years, indicating the company's ability to meet its short-term obligations using its most liquid assets.
As of December 31, 2020, the quick ratio stood at 0.56, suggesting that CVS Health may have faced challenges in meeting its immediate liabilities with its current liquid assets. However, the ratio improved over the subsequent years, reaching 0.59 by December 31, 2021, and further increasing to 0.67 by December 31, 2022, indicating an enhanced liquidity position.
Although the quick ratio dipped slightly to 0.64 by December 31, 2023, and then recovered to 0.66 by December 31, 2024, the overall trend showcases an improved ability of CVS Health to cover its short-term obligations using its quick assets.
Overall, the gradual improvement in the quick ratio over the years suggests a strengthening liquidity position for CVS Health Corp, potentially enhancing its financial flexibility and ability to navigate short-term challenges.
Peer comparison
Dec 31, 2024