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)
Express Scripts Holding Co., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Express Scripts Holding Co. inventory turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Express Scripts Holding Co. receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Express Scripts Holding Co. payables turnover ratio decreased from 2015 to 2016 but then slightly increased from 2016 to 2017. |
| 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. | |
| 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. |
Inventory Turnover
Express Scripts Holding Co., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenues | 91,302,500) | 91,667,000) | 93,349,900) | 92,962,000) | 95,966,400) | |
| Inventories | 2,124,900) | 1,959,000) | 2,023,100) | 2,113,200) | 1,871,100) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 42.97 | 46.79 | 46.14 | 43.99 | 51.29 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 91,302,500 ÷ 2,124,900 = 42.97
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. | Express Scripts Holding Co. inventory turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Receivables Turnover
Express Scripts Holding Co., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 100,064,600) | 100,287,500) | 101,751,800) | 100,887,100) | 104,098,800) | |
| Receivables, net | 7,056,300) | 7,062,100) | 6,721,300) | 5,979,800) | 4,022,900) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 14.18 | 14.20 | 15.14 | 16.87 | 25.88 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Receivables turnover = Revenues ÷ Receivables, net
= 100,064,600 ÷ 7,056,300 = 14.18
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. | Express Scripts Holding Co. receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Payables Turnover
Express Scripts Holding Co., payables turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenues | 91,302,500) | 91,667,000) | 93,349,900) | 92,962,000) | 95,966,400) | |
| Accounts payable | 3,755,700) | 3,875,700) | 3,451,800) | 3,137,300) | 2,900,000) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 24.31 | 23.65 | 27.04 | 29.63 | 33.09 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 91,302,500 ÷ 3,755,700 = 24.31
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. | Express Scripts Holding Co. payables turnover ratio decreased from 2015 to 2016 but then slightly increased from 2016 to 2017. |
Working Capital Turnover
Express Scripts Holding Co., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 11,957,100) | 12,363,400) | 12,059,500) | 10,568,100) | 8,491,400) | |
| Less: Current liabilities | 17,846,400) | 16,428,100) | 17,155,300) | 17,016,900) | 13,235,300) | |
| Working capital | (5,889,300) | (4,064,700) | (5,095,800) | (6,448,800) | (4,743,900) | |
| Revenues | 100,064,600) | 100,287,500) | 101,751,800) | 100,887,100) | 104,098,800) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Working capital turnover = Revenues ÷ Working capital
= 100,064,600 ÷ -5,889,300 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Express Scripts Holding Co., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 42.97 | 46.79 | 46.14 | 43.99 | 51.29 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 8 | 8 | 8 | 8 | 7 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 42.97 = 8
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. |
Average Receivable Collection Period
Express Scripts Holding Co., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 14.18 | 14.20 | 15.14 | 16.87 | 25.88 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 26 | 26 | 24 | 22 | 14 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.18 = 26
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
Express Scripts Holding Co., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 8 | 8 | 8 | 8 | 7 | |
| Average receivable collection period | 26 | 26 | 24 | 22 | 14 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 34 | 34 | 32 | 30 | 21 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 8 + 26 = 34
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
Express Scripts Holding Co., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 24.31 | 23.65 | 27.04 | 29.63 | 33.09 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 15 | 15 | 13 | 12 | 11 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 24.31 = 15
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
Express Scripts Holding Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 8 | 8 | 8 | 8 | 7 | |
| Average receivable collection period | 26 | 26 | 24 | 22 | 14 | |
| Average payables payment period | 15 | 15 | 13 | 12 | 11 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 19 | 19 | 19 | 18 | 10 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 8 + 26 – 15 = 19
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. |