Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

CVS Health Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 17.75 16.83 14.05 13.52 11.88
Receivables turnover 10.16 10.12 11.79 11.91 12.32
Payables turnover 20.22 20.36 18.07 19.14 19.72
Working capital turnover
Average No. Days
Average inventory processing period 21 22 26 27 31
Add: Average receivable collection period 36 36 31 31 30
Operating cycle 57 58 57 58 61
Less: Average payables payment period 18 18 20 19 19
Cash conversion cycle 39 40 37 39 42

Based on: 10-K (reporting date: 2024-12-31), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. CVS Health Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. CVS Health Corp. receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. CVS Health Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. CVS Health Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. CVS Health Corp. cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Inventory Turnover

CVS Health Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of revenues 321,408 303,345 268,173 240,063 219,660
Inventories 18,107 18,025 19,090 17,760 18,496
Short-term Activity Ratio
Inventory turnover1 17.75 16.83 14.05 13.52 11.88
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.02 2.74 3.10 3.59 2.99
Cigna Group 27.27 23.70 26.13 31.58 32.70
Intuitive Surgical Inc. 1.83 1.96 2.27 2.98 2.49
Medtronic PLC 2.15 2.03 2.20 2.43 2.23
Inventory Turnover, Sector
Health Care Equipment & Services 24.63 22.70 21.14 21.50 18.93
Inventory Turnover, Industry
Health Care 10.67 10.01 10.11 10.19 9.16

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 321,408 ÷ 18,107 = 17.75

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. CVS Health Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

CVS Health Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Accounts receivable, net 36,469 35,227 27,276 24,431 21,742
Short-term Activity Ratio
Receivables turnover1 10.16 10.12 11.79 11.91 12.32
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 6.06 6.11 7.02 6.64 5.40
Cigna Group 15.60 17.06 18.64 19.35 19.47
Elevance Health Inc. 18.00 18.08 18.81 20.66 19.72
Intuitive Surgical Inc. 6.82 6.30 6.60 7.30 6.75
Medtronic PLC 5.28 5.21 5.71 5.51 6.22
UnitedHealth Group Inc. 17.66 17.27 18.22 20.07 19.86
Receivables Turnover, Sector
Health Care Equipment & Services 12.67 12.57 13.78 14.11 14.06
Receivables Turnover, Industry
Health Care 8.86 8.54 9.25 9.09 9.09

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Receivables turnover = Revenues from customers ÷ Accounts receivable, net
= 370,656 ÷ 36,469 = 10.16

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. CVS Health Corp. receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Payables Turnover

CVS Health Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of revenues 321,408 303,345 268,173 240,063 219,660
Accounts payable 15,892 14,897 14,838 12,544 11,138
Short-term Activity Ratio
Payables turnover1 20.22 20.36 18.07 19.14 19.72
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.46 4.19 4.15 4.21 3.80
Cigna Group 6.41 6.75 7.31 7.68 7.75
Elevance Health Inc. 8.10 7.72 7.47 7.59 7.75
Intuitive Surgical Inc. 14.05 12.69 13.78 14.45 18.35
Medtronic PLC 4.65 4.03 4.46 4.98 4.72
UnitedHealth Group Inc. 7.72 7.47 7.26 7.63 7.29
Payables Turnover, Sector
Health Care Equipment & Services 9.18 9.23 8.99 9.35 9.36
Payables Turnover, Industry
Health Care 7.77 7.77 7.48 7.62 7.51

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 321,408 ÷ 15,892 = 20.22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. CVS Health Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Working Capital Turnover

CVS Health Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 68,645 67,858 65,682 60,008 56,369
Less: Current liabilities 84,609 79,189 69,736 67,807 62,017
Working capital (15,964) (11,331) (4,054) (7,799) (5,648)
 
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 4.42 4.54 4.48 3.87 4.06
Cigna Group
Elevance Health Inc. 7.85 7.83 8.37 7.23 6.39
Intuitive Surgical Inc. 1.56 1.14 1.29 1.22 0.77
Medtronic PLC 2.90 2.47 2.97 2.15 2.48
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 900.07 415.26 169.58 62.36 83.81
Working Capital Turnover, Industry
Health Care 25.24 20.96 19.09 14.05 14.19

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Working capital turnover = Revenues from customers ÷ Working capital
= 370,656 ÷ -15,964 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

CVS Health Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 17.75 16.83 14.05 13.52 11.88
Short-term Activity Ratio (no. days)
Average inventory processing period1 21 22 26 27 31
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 121 133 118 102 122
Cigna Group 13 15 14 12 11
Intuitive Surgical Inc. 200 186 161 122 147
Medtronic PLC 170 180 166 150 164
Average Inventory Processing Period, Sector
Health Care Equipment & Services 15 16 17 17 19
Average Inventory Processing Period, Industry
Health Care 34 36 36 36 40

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 17.75 = 21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. CVS Health Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

CVS Health Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 10.16 10.12 11.79 11.91 12.32
Short-term Activity Ratio (no. days)
Average receivable collection period1 36 36 31 31 30
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 60 60 52 55 68
Cigna Group 23 21 20 19 19
Elevance Health Inc. 20 20 19 18 19
Intuitive Surgical Inc. 54 58 55 50 54
Medtronic PLC 69 70 64 66 59
UnitedHealth Group Inc. 21 21 20 18 18
Average Receivable Collection Period, Sector
Health Care Equipment & Services 29 29 26 26 26
Average Receivable Collection Period, Industry
Health Care 41 43 39 40 40

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.16 = 36

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

CVS Health Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 21 22 26 27 31
Average receivable collection period 36 36 31 31 30
Short-term Activity Ratio
Operating cycle1 57 58 57 58 61
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 181 193 170 157 190
Cigna Group 36 36 34 31 30
Intuitive Surgical Inc. 254 244 216 172 201
Medtronic PLC 239 250 230 216 223
Operating Cycle, Sector
Health Care Equipment & Services 44 45 43 43 45
Operating Cycle, Industry
Health Care 75 79 75 76 80

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 21 + 36 = 57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

CVS Health Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 20.22 20.36 18.07 19.14 19.72
Short-term Activity Ratio (no. days)
Average payables payment period1 18 18 20 19 19
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 82 87 88 87 96
Cigna Group 57 54 50 48 47
Elevance Health Inc. 45 47 49 48 47
Intuitive Surgical Inc. 26 29 26 25 20
Medtronic PLC 78 91 82 73 77
UnitedHealth Group Inc. 47 49 50 48 50
Average Payables Payment Period, Sector
Health Care Equipment & Services 40 40 41 39 39
Average Payables Payment Period, Industry
Health Care 47 47 49 48 49

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 20.22 = 18

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

CVS Health Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 21 22 26 27 31
Average receivable collection period 36 36 31 31 30
Average payables payment period 18 18 20 19 19
Short-term Activity Ratio
Cash conversion cycle1 39 40 37 39 42
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 99 106 82 70 94
Cigna Group -21 -18 -16 -17 -17
Intuitive Surgical Inc. 228 215 190 147 181
Medtronic PLC 161 159 148 143 146
Cash Conversion Cycle, Sector
Health Care Equipment & Services 4 5 2 4 6
Cash Conversion Cycle, Industry
Health Care 28 32 26 28 31

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 21 + 3618 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. CVS Health Corp. cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.