CVS Health (NEOE:CVS) Inventory Turnover : 4.44 (As of Mar. 2024)

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What is CVS Health Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. CVS Health's Cost of Goods Sold for the three months ended in Mar. 2024 was C$102,706 Mil. CVS Health's Average Total Inventories for the quarter that ended in Mar. 2024 was C$23,154 Mil. CVS Health's Inventory Turnover for the quarter that ended in Mar. 2024 was 4.44.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. CVS Health's Days Inventory for the three months ended in Mar. 2024 was 20.57.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. CVS Health's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.19.

CVS Health Inventory Turnover Historical Data

The historical data trend for CVS Health's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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CVS Health Inventory Turnover Chart

CVS Health Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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12.32

12.03

13.23

14.96

16.24

CVS Health Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															3.86	4.17	4.36	4.42	4.44

CVS Health Inventory Turnover Calculation

CVS Health's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	406967.652	/ (	(25933.765	+	24182.34)	/	2 )
=	406967.652	/	25058.0525
=	16.24

CVS Health's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	102705.753	/ (	(24182.34	+	22125.946)	/	2 )
=	102705.753	/	23154.143
=	4.44

CVS Health (NEOE:CVS) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

CVS Health's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	23154.143	/	102705.753	*	365 / 4
	=	20.57

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

CVS Health's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	23154.143	/	119708.323
	=	0.19

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

CVS Health Inventory Turnover Related Terms

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CVS Health (NEOE:CVS) Business Description

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Address

One CVS Drive, Woonsocket, RI, USA, 02895

Website

https://www.cvshealth.com

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.