CVS Health Corp. (CVS)
Analysis of Inventory
Inventory Accounting Policy
Inventories are valued at the lower of cost or net realizable value using the weighted average cost method. Physical inventory counts are taken on a regular basis in each retail store and LTC pharmacy and a continuous cycle count process is the primary procedure used to validate the inventory balances on hand in each distribution center and mail facility to ensure that the amounts reflected in the accompanying consolidated financial statements are properly stated. During the interim period between physical inventory counts, CVS Health accrues for anticipated physical inventory losses on a location-by-location basis based on historical results and current trends.
Source: 10-K (filing date: 2019-02-28).
CVS Health Corp., Statement of Financial Position, Inventory
USD $ in millions
|Dec 31, 2018||Dec 31, 2017||Dec 31, 2016||Dec 31, 2015||Dec 31, 2014|
|Inventories||Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.||CVS Health Corp.’s inventories increased from 2016 to 2017 and from 2017 to 2018.|