Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

CVS Health Corp. (NYSE:CVS)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Long-term Activity Ratios (Summary)

CVS Health Corp., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net fixed asset turnover 21.24 17.09 17.95 17.45 15.55
Net fixed asset turnover (including operating lease, right-of-use asset) 7.77 17.09 17.95 17.45 15.55
Total asset turnover 1.15 0.99 1.94 1.88 1.64
Equity turnover 4.00 3.33 4.90 4.82 4.12

Based on: 10-K (filing date: 2020-02-18), 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).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. CVS Health Corp.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). CVS Health Corp.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. CVS Health Corp.’s total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. CVS Health Corp.’s equity turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Net Fixed Asset Turnover

CVS Health Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues from customers 255,765  193,919  184,765  177,526  153,290 
Property and equipment, net 12,044  11,349  10,292  10,175  9,855 
Long-term Activity Ratio
Net fixed asset turnover1 21.24 17.09 17.95 17.45 15.55
Benchmarks
Net Fixed Asset Turnover, Industry
Consumer Services 4.16 3.88 3.82 3.82 3.94

Based on: 10-K (filing date: 2020-02-18), 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).

1 2019 Calculation
Net fixed asset turnover = Revenues from customers ÷ Property and equipment, net
= 255,765 ÷ 12,044 = 21.24

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. CVS Health Corp.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

CVS Health Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues from customers 255,765  193,919  184,765  177,526  153,290 
 
Property and equipment, net 12,044  11,349  10,292  10,175  9,855 
Operating lease right-of-use assets 20,860  —  —  —  — 
Property and equipment, net (including operating lease, right-of-use asset) 32,904  11,349  10,292  10,175  9,855 
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 7.77 17.09 17.95 17.45 15.55
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Consumer Services 3.60 3.88 3.82 3.82 3.94

Based on: 10-K (filing date: 2020-02-18), 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).

1 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues from customers ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 255,765 ÷ 32,904 = 7.77

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). CVS Health Corp.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019.

Total Asset Turnover

CVS Health Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues from customers 255,765  193,919  184,765  177,526  153,290 
Total assets 222,449  196,456  95,131  94,462  93,657 
Long-term Activity Ratio
Total asset turnover1 1.15 0.99 1.94 1.88 1.64
Benchmarks
Total Asset Turnover, Industry
Consumer Services 1.15 1.21 1.34 1.35 1.45

Based on: 10-K (filing date: 2020-02-18), 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).

1 2019 Calculation
Total asset turnover = Revenues from customers ÷ Total assets
= 255,765 ÷ 222,449 = 1.15

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. CVS Health Corp.’s total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Equity Turnover

CVS Health Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues from customers 255,765  193,919  184,765  177,526  153,290 
Total CVS Health shareholders’ equity 63,864  58,225  37,691  36,830  37,196 
Long-term Activity Ratio
Equity turnover1 4.00 3.33 4.90 4.82 4.12
Benchmarks
Equity Turnover, Industry
Consumer Services 4.14 4.21 4.28 4.17 4.29

Based on: 10-K (filing date: 2020-02-18), 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).

1 2019 Calculation
Equity turnover = Revenues from customers ÷ Total CVS Health shareholders’ equity
= 255,765 ÷ 63,864 = 4.00

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. CVS Health Corp.’s equity turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.