.Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company's ability to meet its short-term obligations.
Ratios (Summary)
CVS Health Corp., liquidity ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| | Current ratio | |||||
| | Quick ratio | |||||
| | Cash ratio |
Source: Based on data from CVS Health Corp. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | CVS Health Corp.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | CVS Health Corp.'s quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | CVS Health Corp.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Current Ratio
CVS Health Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Current assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Current ratio1 | |||||
| Benchmarks | ||||||
| Current Ratio, Competitors | ||||||
| Walgreens Boots Alliance Inc. | ||||||
| Current Ratio, Sector | ||||||
| Food & Drug Retailers | ||||||
| Current Ratio, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from CVS Health Corp. Annual Reports
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | CVS Health Corp.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Quick Ratio
CVS Health Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Cash and cash equivalents | |||||
| | Short-term investments | |||||
| | Accounts receivable, net | |||||
| | Total quick assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Quick ratio1 | |||||
| Benchmarks | ||||||
| Quick Ratio, Competitors | ||||||
| Walgreens Boots Alliance Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Food & Drug Retailers | ||||||
| Quick Ratio, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from CVS Health Corp. Annual Reports
2017 Calculations
1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | CVS Health Corp.'s quick ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Cash Ratio
CVS Health Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Cash and cash equivalents | |||||
| | Short-term investments | |||||
| | Total cash assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Cash ratio1 | |||||
| Benchmarks | ||||||
| Cash Ratio, Competitors | ||||||
| Walgreens Boots Alliance Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Food & Drug Retailers | ||||||
| Cash Ratio, Industry | ||||||
| Consumer Services | ||||||
Source: Based on data from CVS Health Corp. Annual Reports
2017 Calculations
1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | CVS Health Corp.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
