CVS Health Corp (CVS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 39,121,000 | 30,725,000 | 27,820,000 | 23,940,000 | 21,998,000 |
| Total current liabilities | US$ in thousands | 79,189,000 | 69,421,000 | 67,807,000 | 62,017,000 | 53,303,000 |
| Quick ratio | 0.64 | 0.67 | 0.59 | 0.56 | 0.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,196,000K
+ $3,259,000K
+ $39,121,000K)
÷ $79,189,000K
= 0.64
The quick ratio of CVS Health Corp has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.
As of Dec 31, 2023, the quick ratio stands at 0.63, showing a slight decrease from the previous year's 0.66. This implies that CVS Health Corp may have a lower ability to cover its current liabilities with its quick assets in the most recent period.
However, when comparing to the ratios from the previous years, the current quick ratio of 0.63 is relatively consistent with the historical trend. The company has generally maintained a quick ratio within a narrow range between 0.61 and 0.66 over the past five years, indicating some stability in its liquidity position.
In conclusion, CVS Health Corp's quick ratio has remained relatively steady over the past five years, suggesting a consistent ability to meet its short-term obligations using its liquid assets. However, the recent decrease in the quick ratio may indicate a slight decrease in liquidity in the most recent period, which may warrant further monitoring.
Peer comparison
Dec 31, 2023