Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
CVS Health Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Current Ratio
- The current ratio indicates a generally stable but slightly declining liquidity position over the observed periods. Starting near 0.93 in early 2021, it fluctuated modestly around the 0.9 mark until early 2023. From that point, a slight downward trend became more apparent, with the ratio dropping below 0.85 in several quarters and reaching approximately 0.81 by the end of 2024 before a marginal improvement to 0.82 in early 2025. This suggests a moderate decrease in the company's ability to cover short-term liabilities with current assets, although the ratio remains below the ideal threshold of 1, indicating consistently tight liquidity.
- Quick Ratio
- The quick ratio exhibits a pattern of moderate fluctuation but is largely stable across the periods. Beginning around 0.54 in early 2021, it experienced a rise reaching peaks near 0.64 in late 2022, indicating improved short-term liquidity excluding inventories. However, in 2023 and 2024, the ratio showed a slight decline and oscillated between approximately 0.54 and 0.6. The ratio's movement suggests the company maintained relatively consistent liquid asset coverage over current liabilities, with no significant deterioration or improvement trend.
- Cash Ratio
- The cash ratio shows noticeable volatility and a declining tendency toward the later periods. Initially, it was quite low but gradually increased from 0.15 in early 2021 to a peak of 0.28 in late 2022, signaling a temporary strengthening in the most liquid asset availability. Despite this peak, the ratio subsequently declined, dropping sharply in 2023 and 2024, reaching a low around 0.11 before a slight recovery to 0.14 by early 2025. This pattern may reflect changes in cash management or operational cash flows, indicating a reduction in the company’s immediate cash reserves over time.
Current Ratio
CVS Health Corp., current ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 73,191) | 68,645) | 67,343) | 69,952) | 67,473) | 67,858) | 70,143) | 67,756) | 68,706) | 65,682) | 68,341) | 62,142) | 61,483) | 60,008) | 60,842) | 56,559) | 55,719) | ||||||
| Current liabilities | 88,961) | 84,609) | 84,627) | 81,386) | 83,319) | 79,189) | 81,553) | 79,206) | 75,054) | 69,736) | 72,409) | 68,457) | 69,780) | 67,807) | 64,709) | 59,311) | 60,104) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 0.82 | 0.81 | 0.80 | 0.86 | 0.81 | 0.86 | 0.86 | 0.86 | 0.92 | 0.94 | 0.94 | 0.91 | 0.88 | 0.88 | 0.94 | 0.95 | 0.93 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 1.78 | 1.67 | 1.60 | 1.68 | 1.60 | 1.64 | 1.74 | 1.64 | 1.68 | 1.63 | 1.86 | 2.01 | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | ||||||
| Elevance Health Inc. | 1.43 | 1.45 | 1.50 | 1.49 | 1.37 | 1.44 | 1.41 | 1.44 | 1.43 | 1.40 | 1.35 | 1.36 | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | ||||||
| Intuitive Surgical Inc. | 4.98 | 4.07 | 4.30 | 5.15 | 5.55 | 4.76 | 5.31 | 5.22 | 5.26 | 4.40 | 5.10 | 5.36 | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | ||||||
| Medtronic PLC | 2.13 | 2.03 | 2.30 | 2.29 | 2.42 | 2.39 | 1.76 | 1.76 | 1.58 | 1.86 | 2.61 | 2.91 | 2.89 | 2.65 | 2.10 | 2.16 | 1.87 | ||||||
| UnitedHealth Group Inc. | 0.85 | 0.83 | 0.91 | 0.88 | 0.85 | 0.79 | 0.80 | 0.80 | 0.81 | 0.77 | 0.82 | 0.77 | 0.78 | 0.79 | 0.77 | 0.77 | 0.74 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 73,191 ÷ 88,961 = 0.82
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the examined period reveals distinct trends in the liquidity position, as measured by the current assets, current liabilities, and the resulting current ratio.
- Current Assets
- Current assets exhibited a general upward trend from the beginning through the end of the period, starting at approximately $55.7 billion and increasing to about $73.2 billion. There were fluctuations within this growth trajectory, with some quarters showing modest declines or plateauing levels, notably around the fourth quarter of 2023. Overall, the increase indicates an expanding base of liquid and short-term assets available to cover liabilities.
- Current Liabilities
- Current liabilities also increased over the period, rising from around $60.1 billion to nearly $89.0 billion. The growth in liabilities was somewhat steady, with small quarterly increments but consistent increases, especially in the later quarters starting from 2023 onward. This indicates a rising amount of short-term obligations which could strain liquidity if asset growth does not keep pace.
- Current Ratio
- The current ratio, a key liquidity indicator, showed a declining trend over the timeframe. Initially near 0.93, it remained just below or around this level through 2021 but then gradually decreased to levels near or below 0.85 from late 2022 to end of the period. The ratio fell further to as low as 0.80 at several points in 2024 and 2025, indicating that current liabilities consistently exceeded current assets and liquidity pressures may have intensified.
- Insight and Implications
- While both current assets and current liabilities increased, the rate of growth in current liabilities outpaced that of current assets, leading to a declining current ratio. This pattern suggests a potential tightening of short-term liquidity, which might raise concerns about the company's ability to meet its short-term obligations without relying on additional financing or asset liquidation. The sustained current ratio below 1.0 highlights the need for careful cash and working capital management.
Quick Ratio
CVS Health Corp., quick ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 10,076) | 8,586) | 6,875) | 12,507) | 9,801) | 8,196) | 13,043) | 13,807) | 14,618) | 12,945) | 17,197) | 12,116) | 8,442) | 9,408) | 9,826) | 7,119) | 5,598) | ||||||
| Short-term investments | 2,578) | 2,407) | 2,805) | 3,755) | 3,288) | 3,259) | 3,145) | 3,080) | 3,102) | 2,778) | 2,792) | 2,877) | 2,900) | 3,117) | 3,015) | 3,006) | 3,190) | ||||||
| Accounts receivable, net | 39,625) | 36,469) | 36,179) | 32,385) | 32,217) | 35,227) | 32,927) | 29,546) | 28,331) | 27,276) | 26,317) | 27,233) | 26,451) | 24,431) | 25,283) | 24,164) | 23,855) | ||||||
| Total quick assets | 52,279) | 47,462) | 45,859) | 48,647) | 45,306) | 46,682) | 49,115) | 46,433) | 46,051) | 42,999) | 46,306) | 42,226) | 37,793) | 36,956) | 38,124) | 34,289) | 32,643) | ||||||
| Current liabilities | 88,961) | 84,609) | 84,627) | 81,386) | 83,319) | 79,189) | 81,553) | 79,206) | 75,054) | 69,736) | 72,409) | 68,457) | 69,780) | 67,807) | 64,709) | 59,311) | 60,104) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 0.59 | 0.56 | 0.54 | 0.60 | 0.54 | 0.59 | 0.60 | 0.59 | 0.61 | 0.62 | 0.64 | 0.62 | 0.54 | 0.55 | 0.59 | 0.58 | 0.54 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 1.09 | 1.05 | 1.00 | 1.02 | 0.95 | 1.00 | 1.04 | 1.00 | 1.07 | 1.06 | 1.22 | 1.33 | 1.21 | 1.28 | 1.25 | 1.19 | 1.16 | ||||||
| Elevance Health Inc. | 1.31 | 1.32 | 1.34 | 1.32 | 1.23 | 1.30 | 1.29 | 1.32 | 1.31 | 1.27 | 1.21 | 1.22 | 1.23 | 1.33 | 1.33 | 1.35 | 1.43 | ||||||
| Intuitive Surgical Inc. | 3.73 | 3.00 | 3.21 | 3.94 | 4.31 | 3.83 | 4.44 | 4.36 | 4.30 | 3.56 | 4.19 | 4.49 | 4.40 | 4.34 | 4.66 | 5.12 | 5.76 | ||||||
| Medtronic PLC | 1.35 | 1.31 | 1.46 | 1.42 | 1.51 | 1.54 | 1.18 | 1.18 | 1.01 | 1.30 | 1.87 | 2.07 | 2.06 | 1.91 | 1.58 | 1.63 | 1.37 | ||||||
| UnitedHealth Group Inc. | 0.77 | 0.75 | 0.83 | 0.81 | 0.79 | 0.73 | 0.75 | 0.74 | 0.75 | 0.70 | 0.77 | 0.71 | 0.72 | 0.72 | 0.71 | 0.71 | 0.68 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 52,279 ÷ 88,961 = 0.59
2 Click competitor name to see calculations.
- Total Quick Assets
-
Total quick assets showed an overall upward trend from the first quarter of 2021 to the first quarter of 2025. Starting at approximately $32.6 billion in March 2021, there was a steady increase reaching a peak of about $49.1 billion by September 2023. Following this peak, the values experienced some fluctuations but generally remained elevated, finishing at approximately $52.3 billion in March 2025. This indicates growth in liquid assets over the observed periods, despite some quarter-to-quarter variability.
- Current Liabilities
-
Current liabilities also increased over the timeframe, beginning at around $60.1 billion in March 2021 and rising consistently to roughly $88.96 billion by March 2025. There were periods of moderate fluctuations, but the general trajectory was upward, suggesting an increase in short-term financial obligations over these years. Notably, the value of current liabilities remained significantly higher than total quick assets in all quarters.
- Quick Ratio
-
The quick ratio exhibited some variability but remained below 1.0 throughout the entire period, reflecting that quick assets consistently covered less than full current liabilities. The ratio began at 0.54 in March 2021, increased modestly to peak at 0.64 in September 2022, and fluctuated around low 0.5 to 0.6 levels thereafter. The ratio's fluctuations indicate slight changes in the company's short-term liquidity position, but no significant improvement toward full coverage of current liabilities by quick assets was observed.
- Overall Analysis
-
The data reflects steady growth in both total quick assets and current liabilities over the nearly four-year period, with liabilities consistently outpacing quick assets. The persistent quick ratio below 1.0 suggests that the company may face ongoing challenges in meeting short-term obligations solely with its most liquid assets. The relative stability of the quick ratio despite growth in absolute figures could point to a parallel increase in liabilities alongside asset growth, maintaining the liquidity pressure. This trend highlights the importance of monitoring working capital management and liquidity strategies to ensure that short-term financial stability is maintained.
Cash Ratio
CVS Health Corp., cash ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 10,076) | 8,586) | 6,875) | 12,507) | 9,801) | 8,196) | 13,043) | 13,807) | 14,618) | 12,945) | 17,197) | 12,116) | 8,442) | 9,408) | 9,826) | 7,119) | 5,598) | ||||||
| Short-term investments | 2,578) | 2,407) | 2,805) | 3,755) | 3,288) | 3,259) | 3,145) | 3,080) | 3,102) | 2,778) | 2,792) | 2,877) | 2,900) | 3,117) | 3,015) | 3,006) | 3,190) | ||||||
| Total cash assets | 12,654) | 10,993) | 9,680) | 16,262) | 13,089) | 11,455) | 16,188) | 16,887) | 17,720) | 15,723) | 19,989) | 14,993) | 11,342) | 12,525) | 12,841) | 10,125) | 8,788) | ||||||
| Current liabilities | 88,961) | 84,609) | 84,627) | 81,386) | 83,319) | 79,189) | 81,553) | 79,206) | 75,054) | 69,736) | 72,409) | 68,457) | 69,780) | 67,807) | 64,709) | 59,311) | 60,104) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 0.14 | 0.13 | 0.11 | 0.20 | 0.16 | 0.14 | 0.20 | 0.21 | 0.24 | 0.23 | 0.28 | 0.22 | 0.16 | 0.18 | 0.20 | 0.17 | 0.15 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.53 | 0.56 | 0.52 | 0.52 | 0.47 | 0.53 | 0.54 | 0.57 | 0.66 | 0.66 | 0.74 | 0.75 | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | ||||||
| Elevance Health Inc. | 0.79 | 0.85 | 0.90 | 0.86 | 0.82 | 0.87 | 0.90 | 0.92 | 0.91 | 0.86 | 0.87 | 0.86 | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | ||||||
| Intuitive Surgical Inc. | 2.93 | 2.30 | 2.52 | 3.20 | 3.49 | 3.15 | 3.86 | 3.77 | 3.59 | 2.90 | 3.50 | 3.78 | 3.58 | 3.66 | 3.98 | 4.42 | 5.04 | ||||||
| Medtronic PLC | 0.76 | 0.74 | 0.85 | 0.80 | 0.87 | 0.88 | 0.77 | 0.79 | 0.63 | 0.85 | 1.26 | 1.37 | 1.36 | 1.27 | 1.17 | 1.18 | 0.99 | ||||||
| UnitedHealth Group Inc. | 0.30 | 0.28 | 0.37 | 0.33 | 0.35 | 0.34 | 0.42 | 0.44 | 0.43 | 0.36 | 0.46 | 0.36 | 0.37 | 0.36 | 0.35 | 0.35 | 0.33 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 12,654 ÷ 88,961 = 0.14
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends over the observed periods. Total cash assets exhibit a generally fluctuating pattern. From early 2021 to the end of 2022, there is an overall upward movement, peaking in the third quarter of 2022 at nearly 19,989 million USD, followed by a decline and subsequent fluctuations in 2023 and 2024, with a notable dip in the third quarter of 2024 before a slight recovery by the first quarter of 2025.
Current liabilities display a consistent upward trajectory throughout the entire timeline. Starting at approximately 60,104 million USD in the first quarter of 2021, liabilities increase steadily, reaching nearly 88,961 million USD by the first quarter of 2025. This denotes a continuous growth in short-term obligations over the analyzed periods.
The cash ratio shows variability correlated with changes in cash assets and liabilities. Initially, the ratio increases from 0.15 in the first quarter of 2021 to a peak of 0.28 in the third quarter of 2022, reflecting a stronger liquidity position during that time. Following this peak, the ratio declines notably, reaching lows of around 0.11 to 0.14 between late 2024 and early 2025, which indicates a comparatively weaker liquidity position relative to current liabilities in those periods.
Overall, the firm's current liabilities have grown at a steady pace, outstripping the growth in cash assets, particularly in the later periods. This has exerted downward pressure on liquidity as measured by the cash ratio. The higher cash ratio observed around late 2021 to mid-2022 suggests a period of enhanced liquidity, but this was not sustained. The more recent decline in the cash ratio points to a potential increase in liquidity risk, which may warrant closer attention in financial management and planning.
- Total Cash Assets
- Showed an upward trend until late 2022, followed by volatility and a general decline in subsequent quarters.
- Current Liabilities
- Consistently increased over the entire period, indicating growing short-term financial obligations.
- Cash Ratio
- Improved significantly through mid-2022, then weakened notably towards early 2025, reflecting fluctuating liquidity relative to liabilities.