Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

CVS Health Corp., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$ in millions


Current Assets
Current assets demonstrated a consistent upward trend over the period analyzed. Beginning at approximately $8.4 billion in 2005, current assets increased steadily each year, reaching over $68.6 billion by 2024. Notable growth acceleration is observed after 2017, with current assets almost doubling from around $31 billion to nearly $69 billion by the end of the period. This growth suggests an expanding asset base available for use within one year.
Current Liabilities
Current liabilities also increased considerably during the same timeframe. Starting from roughly $4.6 billion in 2005, current liabilities rose steadily to approximately $84.6 billion by 2024. The increase appeared to accelerate after 2013, with a notable surge between 2017 and 2024, indicating a growing obligation to be settled within one year. The sharp upward trend in current liabilities suggests a higher short-term debt or operational obligations accompanying the asset growth.
Current Ratio
The current ratio exhibited a declining trend throughout the period, moving from a strong liquidity position of 1.83 in 2005 down to a weaker position of 0.81 by 2024. Early years show ratios above 1, indicating that current assets were sufficient to cover current liabilities. However, from around 2013 onwards, the ratio dropped below or near 1, signifying tightening liquidity and a reduced buffer to meet short-term obligations. This decline points toward increased financial risk or more aggressive working capital management, as liabilities have grown faster than assets.
Summary
In summary, the data reflects significant growth in both current assets and current liabilities over the nearly two-decade period. However, the growth in liabilities has outpaced that of assets, which has resulted in a decreasing current ratio. This declining liquidity ratio highlights a potential increase in short-term financial pressure. Continuous monitoring of working capital and liquidity management will be important to ensure the ability to meet short-term obligations does not become compromised.

Comparison to Competitors

CVS Health Corp., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Health Care Equipment & Services)

CVS Health Corp., current ratio, long-term trends, comparison to sector (health care equipment & services)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)