CVSCAUTIOUS

CVS Current Ratio Analysis

0.87x

Updated 288h ago·SEC filings & market data

Key Takeaway

The current ratio of 0.87x measures how well CVS can cover its short-term debts with its short-term assets — a value below 1.0 means it has less current assets than current liabilities, indicating potential liquidity pressure.

Sector Performance

24th percentile

CVS

0.87x

Sector Median

1.20x

Sector Avg

2.57x

Prior Period

0.84x(Apr 2026)

↑ Improving

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Deep Analysis

Among sector peers, CVS’s ratio sits at the 24th percentile, far below the sector median of 1.20x, showing weaker short-term financial flexibility compared to most competitors. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no direction to assess. The combination of a low current ratio with no trend information suggests an immediate liquidity risk, but the absence of historical changes limits any judgment on whether conditions are improving or worsening. This metric directly supports the overall CAUTIOUS verdict, as a ratio well below both 1.0 and the sector median points to elevated financial risk.

Frequently Asked Questions

What does the Current Ratio tell investors about CVS?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are CVS's closest peers by Current Ratio?

The closest peers by Current Ratio include: GEN (0.40x), USB (0.40x), CHTR (0.40x), DRI (0.39x), WFC (0.34x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.