CVS Health Corp. (CVS)
Analysis of Liquidity Ratios
Difficulty: Beginner
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
CVS Health Corp., liquidity ratios
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.03 | 1.02 | 1.18 | 1.31 | 1.37 | |
| Quick ratio | 0.55 | 0.49 | 0.60 | 0.62 | 0.64 | |
| Cash ratio | 0.15 | 0.06 | 0.13 | 0.11 | 0.13 |
Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09), 10-K (filing date: 2015-02-10).
| Liquidity 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 2016 to 2017 but then slightly improved from 2017 to 2018. |
| 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 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | CVS Health Corp.’s cash ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Current Ratio
CVS Health Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 45,243 | 31,229 | 31,042 | 30,378 | 25,983 | |
| Current liabilities | 44,009 | 30,648 | 26,250 | 23,169 | 19,027 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.03 | 1.02 | 1.18 | 1.31 | 1.37 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | 0.82 | 1.07 | 1.52 | 1.19 | 1.38 | |
| Current Ratio, Sector | ||||||
| Food & Drug Retailers | 0.96 | 1.04 | 1.32 | 1.26 | 1.37 | |
| Current Ratio, Industry | ||||||
| Consumer Services | 0.94 | 0.95 | 1.03 | 1.08 | 1.09 | |
Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 45,243 ÷ 44,009 = 1.03
2 Click competitor name to see calculations.
| Liquidity 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 2016 to 2017 but then slightly improved from 2017 to 2018. |
Quick Ratio
CVS Health Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,059 | 1,696 | 3,371 | 2,459 | 2,481 | |
| Investments | 2,522 | 111 | 87 | 88 | 34 | |
| Accounts receivable, net | 17,631 | 13,181 | 12,164 | 11,888 | 9,687 | |
| Total quick assets | 24,212 | 14,988 | 15,622 | 14,435 | 12,202 | |
| Current liabilities | 44,009 | 30,648 | 26,250 | 23,169 | 19,027 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.55 | 0.49 | 0.60 | 0.62 | 0.64 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | 0.34 | 0.53 | 0.94 | 0.59 | 0.66 | |
| Quick Ratio, Sector | ||||||
| Food & Drug Retailers | 0.48 | 0.50 | 0.73 | 0.61 | 0.65 | |
| Quick Ratio, Industry | ||||||
| Consumer Services | 0.49 | 0.48 | 0.52 | 0.51 | 0.53 | |
Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 24,212 ÷ 44,009 = 0.55
2 Click competitor name to see calculations.
| Liquidity 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 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Cash Ratio
CVS Health Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,059 | 1,696 | 3,371 | 2,459 | 2,481 | |
| Investments | 2,522 | 111 | 87 | 88 | 34 | |
| Total cash assets | 6,581 | 1,807 | 3,458 | 2,547 | 2,515 | |
| Current liabilities | 44,009 | 30,648 | 26,250 | 23,169 | 19,027 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.15 | 0.06 | 0.13 | 0.11 | 0.13 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | 0.04 | 0.18 | 0.58 | 0.18 | 0.30 | |
| Cash Ratio, Sector | ||||||
| Food & Drug Retailers | 0.11 | 0.10 | 0.31 | 0.14 | 0.18 | |
| Cash Ratio, Industry | ||||||
| Consumer Services | 0.28 | 0.27 | 0.31 | 0.30 | 0.29 | |
Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,581 ÷ 44,009 = 0.15
2 Click competitor name to see calculations.
| Liquidity 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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |