Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
CVS Health Corp., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.86 | 0.94 | 0.88 | 0.91 | 0.94 | |
| Quick ratio | 0.59 | 0.62 | 0.55 | 0.53 | 0.52 | |
| Cash ratio | 0.14 | 0.23 | 0.18 | 0.18 | 0.15 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | CVS Health Corp. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | CVS Health Corp. quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | CVS Health Corp. cash ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Current Ratio
CVS Health Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 67,858) | 65,682) | 60,008) | 56,369) | 50,302) | |
| Current liabilities | 79,189) | 69,736) | 67,807) | 62,017) | 53,303) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.86 | 0.94 | 0.88 | 0.91 | 0.94 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.64 | 1.63 | 1.85 | 1.72 | 1.44 | |
| Cigna Group | 0.77 | 0.73 | 0.83 | 0.77 | 0.74 | |
| Elevance Health Inc. | 1.44 | 1.40 | 1.47 | 1.55 | 1.65 | |
| Humana Inc. | 1.59 | 1.52 | 1.62 | 1.77 | 1.82 | |
| Intuitive Surgical Inc. | 4.76 | 4.40 | 5.08 | 6.86 | 4.53 | |
| Medtronic PLC | 2.39 | 1.86 | 2.65 | 2.13 | 2.59 | |
| UnitedHealth Group Inc. | 0.79 | 0.77 | 0.79 | 0.74 | 0.69 | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.04 | 1.05 | 1.09 | 1.08 | 1.07 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.14 | 1.16 | 1.21 | 1.21 | 1.34 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 67,858 ÷ 79,189 = 0.86
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | CVS Health Corp. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Quick Ratio
CVS Health Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 8,196) | 12,945) | 9,408) | 7,854) | 5,683) | |
| Investments | 3,259) | 2,778) | 3,117) | 3,000) | 2,373) | |
| Accounts receivable, net | 35,227) | 27,276) | 24,431) | 21,742) | 19,617) | |
| Total quick assets | 46,682) | 42,999) | 36,956) | 32,596) | 27,673) | |
| Current liabilities | 79,189) | 69,736) | 67,807) | 62,017) | 53,303) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.59 | 0.62 | 0.55 | 0.53 | 0.52 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.00 | 1.06 | 1.28 | 1.14 | 0.88 | |
| Cigna Group | 0.54 | 0.58 | 0.48 | 0.66 | 0.41 | |
| Elevance Health Inc. | 1.30 | 1.27 | 1.33 | 1.42 | 1.52 | |
| Humana Inc. | 1.24 | 1.20 | 1.20 | 1.37 | 1.47 | |
| Intuitive Surgical Inc. | 3.83 | 3.56 | 4.34 | 5.96 | 3.75 | |
| Medtronic PLC | 1.54 | 1.30 | 1.91 | 1.50 | 1.90 | |
| UnitedHealth Group Inc. | 0.73 | 0.70 | 0.72 | 0.68 | 0.63 | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.82 | 0.83 | 0.83 | 0.85 | 0.78 | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.83 | 0.86 | 0.90 | 0.90 | 1.00 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 46,682 ÷ 79,189 = 0.59
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | CVS Health Corp. quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Cash Ratio
CVS Health Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 8,196) | 12,945) | 9,408) | 7,854) | 5,683) | |
| Investments | 3,259) | 2,778) | 3,117) | 3,000) | 2,373) | |
| Total cash assets | 11,455) | 15,723) | 12,525) | 10,854) | 8,056) | |
| Current liabilities | 79,189) | 69,736) | 67,807) | 62,017) | 53,303) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.14 | 0.23 | 0.18 | 0.18 | 0.15 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.53 | 0.66 | 0.78 | 0.60 | 0.38 | |
| Cigna Group | 0.18 | 0.17 | 0.14 | 0.32 | 0.14 | |
| Elevance Health Inc. | 0.87 | 0.86 | 0.95 | 1.04 | 1.08 | |
| Humana Inc. | 1.13 | 1.10 | 1.08 | 1.29 | 1.37 | |
| Intuitive Surgical Inc. | 3.15 | 2.90 | 3.66 | 5.30 | 3.13 | |
| Medtronic PLC | 0.88 | 0.85 | 1.27 | 1.06 | 1.16 | |
| UnitedHealth Group Inc. | 0.34 | 0.36 | 0.36 | 0.33 | 0.28 | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.42 | 0.46 | 0.46 | 0.50 | 0.42 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.44 | 0.48 | 0.52 | 0.53 | 0.64 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 11,455 ÷ 79,189 = 0.14
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | CVS Health Corp. cash ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |