Short-term (Operating) Activity Analysis Quarterly Data

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Ratios (Summary)

CVS Health Corp., short-term (operating) activity ratios (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Turnover Ratios
Inventory turnover 10.60 10.21 10.89 10.66 10.49 10.07 10.05 9.81 9.56 9.05 9.29 9.68 9.60 9.56 9.48 9.46 9.34 9.32
Receivables turnover 13.32 14.02 14.66 14.73 14.76 14.59 12.68 12.65 12.30 12.89 11.65 13.37 14.07 14.39 12.48 13.85 14.16 14.52
Payables turnover 20.30 17.63 19.51 19.33 20.44 18.71 19.01 18.91 18.08 16.92 17.46 18.82 18.26 17.41 18.24 18.59 18.54 18.56
Working capital turnover 4.48 318.01 129.33 70.98 82.45 37.05 41.14 57.91 32.85 21.26 16.01 24.20 24.20 20.04 18.97 17.59 15.61 12.80
Average No. of Days
Average inventory processing period 34 36 34 34 35 36 36 37 38 40 39 38 38 38 39 39 39 39
Add: Average receivable collection period 27 26 25 25 25 25 29 29 30 28 31 27 26 25 29 26 26 25
Operating cycle 61 62 59 59 60 61 65 66 68 68 70 65 64 63 68 65 65 64
Less: Average payables payment period 18 21 19 19 18 20 19 19 20 22 21 19 20 21 20 20 20 20
Cash conversion cycle 43 41 40 40 42 41 46 47 48 46 49 46 44 42 48 45 45 44
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports
Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. CVS Health Corp.'s inventory turnover deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 not reaching Q3 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. CVS Health Corp.'s receivables turnover deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. CVS Health Corp.'s payables turnover declined from Q3 2017 to Q4 2017 but then increased from Q4 2017 to Q1 2018 exceeding Q3 2017 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. CVS Health Corp.'s working capital turnover improved from Q3 2017 to Q4 2017 but then deteriorated significantly from Q4 2017 to Q1 2018.
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. CVS Health Corp.'s average receivable collection period deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Operating cycle Equal to average inventory processing period plus average receivables collection period. CVS Health Corp.'s operating cycle deteriorated from Q3 2017 to Q4 2017 but then slightly improved from Q4 2017 to Q1 2018.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. CVS Health Corp.'s average payables payment period increased from Q3 2017 to Q4 2017 but then declined significantly from Q4 2017 to Q1 2018.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. CVS Health Corp.'s cash conversion cycle deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Inventory Turnover

CVS Health Corp., inventory turnover calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 38,834  40,481  39,055  38,750  37,934  38,365  37,123  36,710  36,471  33,844  31,983  30,767  30,168  30,422  28,553  28,278  26,747  26,492  25,905  25,407  25,174 
Inventories 14,824  15,296  14,147  14,271  14,306  14,760  14,348  14,177  13,912  14,001  13,282  12,384  12,231  11,930  11,613  11,360  11,188  11,045  10,825  10,578  10,592 
Ratio
Inventory turnover1 10.60 10.21 10.89 10.66 10.49 10.07 10.05 9.81 9.56 9.05 9.29 9.68 9.60 9.56 9.48 9.46 9.34 9.32
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Inventory turnover = (Cost of revenuesQ1 2018 + Cost of revenuesQ4 2017 + Cost of revenuesQ3 2017 + Cost of revenuesQ2 2017) ÷ Inventories
= (38,834 + 40,481 + 39,055 + 38,750) ÷ 14,824 = 10.60

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. CVS Health Corp.'s inventory turnover deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 not reaching Q3 2017 level.

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Receivables Turnover

CVS Health Corp., receivables turnover calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Net revenues 45,693  48,385  46,181  45,685  44,514  45,971  44,615  43,725  43,215  41,145  38,644  37,169  36,332  37,055  35,021  34,602  32,689  32,830  31,932  31,248  30,751 
Accounts receivable, net 13,964  13,181  12,440  12,274  12,114  12,164  13,625  13,183  13,025  11,888  12,804  10,892  10,162  9,687  10,828  9,533  9,086  8,729  8,035  7,093  6,635 
Ratio
Receivables turnover1 13.32 14.02 14.66 14.73 14.76 14.59 12.68 12.65 12.30 12.89 11.65 13.37 14.07 14.39 12.48 13.85 14.16 14.52
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Receivables turnover = (Net revenuesQ1 2018 + Net revenuesQ4 2017 + Net revenuesQ3 2017 + Net revenuesQ2 2017) ÷ Accounts receivable, net
= (45,693 + 48,385 + 46,181 + 45,685) ÷ 13,964 = 13.32

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. CVS Health Corp.'s receivables turnover deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Payables Turnover

CVS Health Corp., payables turnover calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 38,834  40,481  39,055  38,750  37,934  38,365  37,123  36,710  36,471  33,844  31,983  30,767  30,168  30,422  28,553  28,278  26,747  26,492  25,905  25,407  25,174 
Accounts payable 7,741  8,863  7,899  7,874  7,344  7,946  7,584  7,351  7,361  7,490  7,064  6,370  6,431  6,547  6,033  5,780  5,638  5,548  5,412  5,178  5,506 
Ratio
Payables turnover1 20.30 17.63 19.51 19.33 20.44 18.71 19.01 18.91 18.08 16.92 17.46 18.82 18.26 17.41 18.24 18.59 18.54 18.56
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Payables turnover = (Cost of revenuesQ1 2018 + Cost of revenuesQ4 2017 + Cost of revenuesQ3 2017 + Cost of revenuesQ2 2017) ÷ Accounts payable
= (38,834 + 40,481 + 39,055 + 38,750) ÷ 7,741 = 20.30

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. CVS Health Corp.'s payables turnover declined from Q3 2017 to Q4 2017 but then increased from Q4 2017 to Q1 2018 exceeding Q3 2017 level.

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Working Capital Turnover

CVS Health Corp., working capital turnover calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 71,798  31,229  29,923  29,404  29,457  31,042  30,939  29,448  29,413  30,378  30,753  26,401  25,622  25,983  25,337  24,138  24,460  25,325  21,432  19,869  19,727 
Less: Current liabilities 30,248  30,648  28,513  26,857  27,288  26,250  26,741  26,569  24,537  23,169  21,434  20,386  19,713  19,027  18,213  16,629  16,213  15,425  15,098  12,690  13,195 
Working capital 41,550  581  1,410  2,547  2,169  4,792  4,198  2,879  4,876  7,209  9,319  6,015  5,909  6,956  7,124  7,509  8,247  9,900  6,334  7,179  6,532 
Net revenues 45,693  48,385  46,181  45,685  44,514  45,971  44,615  43,725  43,215  41,145  38,644  37,169  36,332  37,055  35,021  34,602  32,689  32,830  31,932  31,248  30,751 
Ratio
Working capital turnover1 4.48 318.01 129.33 70.98 82.45 37.05 41.14 57.91 32.85 21.26 16.01 24.20 24.20 20.04 18.97 17.59 15.61 12.80
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Working capital turnover = (Net revenuesQ1 2018 + Net revenuesQ4 2017 + Net revenuesQ3 2017 + Net revenuesQ2 2017) ÷ Working capital
= (45,693 + 48,385 + 46,181 + 45,685) ÷ 41,550 = 4.48

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. CVS Health Corp.'s working capital turnover improved from Q3 2017 to Q4 2017 but then deteriorated significantly from Q4 2017 to Q1 2018.

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Average Inventory Processing Period

CVS Health Corp., average inventory processing period calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Inventory turnover 10.60 10.21 10.89 10.66 10.49 10.07 10.05 9.81 9.56 9.05 9.29 9.68 9.60 9.56 9.48 9.46 9.34 9.32
Ratio (no. of days)
Average inventory processing period1 34 36 34 34 35 36 36 37 38 40 39 38 38 38 39 39 39 39
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 10.60 = 34

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

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Average Receivable Collection Period

CVS Health Corp., average receivable collection period calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Receivables turnover 13.32 14.02 14.66 14.73 14.76 14.59 12.68 12.65 12.30 12.89 11.65 13.37 14.07 14.39 12.48 13.85 14.16 14.52
Ratio (no. of days)
Average receivable collection period1 27 26 25 25 25 25 29 29 30 28 31 27 26 25 29 26 26 25
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.32 = 27

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. CVS Health Corp.'s average receivable collection period deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Operating Cycle

CVS Health Corp., operating cycle calculation (quarterly data)

No. of days

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Average inventory processing period 34 36 34 34 35 36 36 37 38 40 39 38 38 38 39 39 39 39
Average receivable collection period 27 26 25 25 25 25 29 29 30 28 31 27 26 25 29 26 26 25
Ratio
Operating cycle1 61 62 59 59 60 61 65 66 68 68 70 65 64 63 68 65 65 64
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 34 + 27 = 61

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. CVS Health Corp.'s operating cycle deteriorated from Q3 2017 to Q4 2017 but then slightly improved from Q4 2017 to Q1 2018.

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Average Payables Payment Period

CVS Health Corp., average payables payment period calculation (quarterly data)

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Payables turnover 20.30 17.63 19.51 19.33 20.44 18.71 19.01 18.91 18.08 16.92 17.46 18.82 18.26 17.41 18.24 18.59 18.54 18.56
Ratio (no. of days)
Average payables payment period1 18 21 19 19 18 20 19 19 20 22 21 19 20 21 20 20 20 20
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 20.30 = 18

Ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. CVS Health Corp.'s average payables payment period increased from Q3 2017 to Q4 2017 but then declined significantly from Q4 2017 to Q1 2018.

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Cash Conversion Cycle

CVS Health Corp., cash conversion cycle calculation (quarterly data)

No. of days

 
Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Average inventory processing period 34 36 34 34 35 36 36 37 38 40 39 38 38 38 39 39 39 39
Average receivable collection period 27 26 25 25 25 25 29 29 30 28 31 27 26 25 29 26 26 25
Average payables payment period 18 21 19 19 18 20 19 19 20 22 21 19 20 21 20 20 20 20
Ratio
Cash conversion cycle1 43 41 40 40 42 41 46 47 48 46 49 46 44 42 48 45 45 44
Source: Based on data from CVS Health Corp. Quarterly and Annual Reports

Q1 2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 34 + 27 – 18 = 43

Ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. CVS Health Corp.'s cash conversion cycle deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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