Analysis of Debt
Total Debt (Carrying Amount)
CVS Health Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Short-term debt
- The short-term debt figure is only reported for the years ending 2023 and 2024, showing a value of 200 million US dollars in 2023 and a significant increase to 2,119 million US dollars in 2024. This substantial rise suggests a growing reliance on short-term borrowing in the most recent year.
- Current portion of long-term debt
- The current portion of long-term debt exhibits a clear declining trend from 5,440 million US dollars in 2020 to 1,778 million US dollars in 2022. However, this trend reverses in the subsequent years, with the figure increasing to 2,772 million in 2023 and further to 3,624 million in 2024. This indicates an initial reduction in short-term liabilities arising from long-term debt, followed by a rise possibly due to upcoming maturities or refinancing activities.
- Long-term debt, excluding current portion
- Long-term debt excluding the current portion decreased from 59,207 million US dollars in 2020 to 50,476 million in 2022, reflecting a reduction in long-term obligations over the first three years. However, in 2023 and 2024, the long-term debt rebounds to 58,638 million and then slightly increases to 60,527 million, demonstrating a reversal and suggesting new long-term borrowings or adjustments in debt structure during the later period.
- Total debt (carrying amount)
- Total debt follows a pattern similar to the components noted above. It decreases steadily from 64,647 million US dollars in 2020 to 52,254 million in 2022, before rising to 61,610 million in 2023 and reaching 66,270 million in 2024. The overall trend highlights a phase of deleveraging over the first three years, followed by a renewed increase in total debt levels in the most recent two years.
- Overall insights
- The data reveal that the company initially focused on reducing its debt burden through lowered current portions of long-term debt and long-term debt totals until 2022. Starting in 2023, there has been an evident strategic shift, with increased short-term debt and rising current portions of long-term debt, suggesting possible refinancing or changes in capital structure strategy. The increase in total debt by 2024 surpasses the 2020 level, indicating a higher leverage position at the end of the period under review.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term debt | 2,119) |
| Long-term debt, including current portion | 58,724) |
| Total debt (fair value) | 60,843) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.64%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.98% | 2,119) | 106) | |
| 4.10% | 724) | 30) | |
| 3.88% | 2,828) | 110) | |
| 5.00% | 1,500) | 75) | |
| 2.88% | 1,750) | 50) | |
| 3.00% | 750) | 23) | |
| 3.63% | 750) | 27) | |
| 6.25% | 372) | 23) | |
| 1.30% | 2,250) | 29) | |
| 4.30% | 5,000) | 215) | |
| 5.00% | 1,000) | 50) | |
| 5.40% | 1,000) | 54) | |
| 3.25% | 1,750) | 57) | |
| 5.13% | 1,500) | 77) | |
| 3.75% | 1,500) | 56) | |
| 1.75% | 1,250) | 22) | |
| 5.25% | 750) | 39) | |
| 1.88% | 1,250) | 23) | |
| 5.55% | 1,000) | 56) | |
| 2.13% | 1,000) | 21) | |
| 5.25% | 1,750) | 92) | |
| 5.30% | 1,250) | 66) | |
| 5.70% | 1,250) | 71) | |
| 4.88% | 652) | 32) | |
| 6.63% | 771) | 51) | |
| 6.75% | 533) | 36) | |
| 4.78% | 5,000) | 239) | |
| 6.13% | 447) | 27) | |
| 4.13% | 602) | 25) | |
| 2.70% | 367) | 10) | |
| 5.75% | 133) | 8) | |
| 4.50% | 500) | 23) | |
| 4.13% | 226) | 9) | |
| 5.30% | 750) | 40) | |
| 4.75% | 375) | 18) | |
| 6.00% | 750) | 45) | |
| 5.13% | 3,500) | 179) | |
| 3.88% | 537) | 21) | |
| 5.05% | 8,000) | 404) | |
| 4.25% | 399) | 17) | |
| 5.63% | 1,250) | 70) | |
| 5.88% | 1,250) | 73) | |
| 6.05% | 1,000) | 61) | |
| 6.00% | 750) | 45) | |
| 6.75% | 750) | 51) | |
| 7.00% | 2,250) | 158) | |
| 5.10% | 1,360) | 69) | |
| Total | 66,445) | 3,082) | |
| 4.64% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 3,082 ÷ 66,445 = 4.64%