Microsoft Excel LibreOffice Calc

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.