Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
CVS Health Corp., short-term (operating) activity ratios
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
| 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 | |
| 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 | 24.05 | 22.52 | 20.37 | 20.15 | 17.40 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 9.50 | 9.18 | 9.22 | 9.17 | 8.17 | |
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
| 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 | |
| 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 | 12.24 | 12.11 | 13.26 | 13.54 | 13.48 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.42 | 8.15 | 8.84 | 8.65 | 8.64 | |
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
| 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 | |
| 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 | 10.26 | 9.93 | 9.42 | 9.80 | 9.78 | |
| Payables Turnover, Industry | ||||||
| Health Care | 8.12 | 7.96 | 7.50 | 7.61 | 7.48 | |
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
| 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 | |
| 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 | 95.28 | 67.67 | 50.71 | 35.48 | 39.06 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 19.80 | 16.59 | 15.34 | 11.93 | 11.78 | |
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
| 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 | |
| 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 | 18 | 18 | 21 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 38 | 40 | 40 | 40 | 45 | |
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
| 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 | |
| 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 | 30 | 30 | 28 | 27 | 27 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 43 | 45 | 41 | 42 | 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).
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
| 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 | |
| Intuitive Surgical Inc. | 254 | 244 | 216 | 172 | 201 | |
| Medtronic PLC | 239 | 250 | 230 | 216 | 223 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 45 | 46 | 46 | 45 | 48 | |
| Operating Cycle, Industry | ||||||
| Health Care | 81 | 85 | 81 | 82 | 87 | |
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
| 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 | |
| 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 | 36 | 37 | 39 | 37 | 37 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 45 | 46 | 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
| 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 | |
| Intuitive Surgical Inc. | 228 | 215 | 190 | 147 | 181 | |
| Medtronic PLC | 161 | 159 | 148 | 143 | 146 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 9 | 9 | 7 | 8 | 11 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 36 | 39 | 32 | 34 | 38 | |
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 + 36 – 18 = 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. |