Stock Analysis on Net

CVS Health Corp. (NYSE:CVS) 

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

CVS Health Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Goodwill 91,272 91,272 78,150 79,121 79,552
Trademark 10,498 10,498 10,498 10,498 10,498
Indefinitely-lived intangible assets 10,498 10,498 10,498 10,498 10,498
Customer contracts/relationships and covenants not to compete 26,904 26,784 21,206 25,084 24,952
Technology 1,250 1,253 1,060 1,060 1,060
Provider networks 4,203 4,203 4,203 4,203 4,203
Value of Business Acquired 590 590 590 590 590
Other 826 838 302 318 320
Finitely-lived intangible assets, gross carrying amount 33,773 33,668 27,361 31,255 31,125
Accumulated amortization (16,948) (14,932) (13,077) (12,727) (10,481)
Finitely-lived intangible assets, net carrying amount 16,825 18,736 14,284 18,528 20,644
Intangible assets 27,323 29,234 24,782 29,026 31,142
Goodwill and other intangibles 118,595 120,506 102,932 108,147 110,694

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. CVS Health Corp. intangible assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Goodwill and other intangibles Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. CVS Health Corp. goodwill and other intangibles increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Adjustments to Financial Statements: Removal of Goodwill

CVS Health Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 253,215 249,728 228,275 232,999 230,715
Less: Goodwill 91,272 91,272 78,150 79,121 79,552
Total assets (adjusted) 161,943 158,456 150,125 153,878 151,163
Adjustment to Total CVS Health Shareholders’ Equity
Total CVS Health shareholders’ equity (as reported) 75,560 76,461 71,015 75,075 69,389
Less: Goodwill 91,272 91,272 78,150 79,121 79,552
Total CVS Health shareholders’ equity (adjusted) (15,712) (14,811) (7,135) (4,046) (10,163)
Adjustment to Net Income Attributable To CVS Health
Net income attributable to CVS Health (as reported) 4,614 8,344 4,149 7,910 7,179
Add: Goodwill impairment 431
Net income attributable to CVS Health (adjusted) 4,614 8,344 4,149 8,341 7,179

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).


CVS Health Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

CVS Health Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 1.24% 2.34% 1.29% 2.72% 2.68%
Adjusted net profit margin 1.24% 2.34% 1.29% 2.87% 2.68%
Total Asset Turnover
Reported total asset turnover 1.46 1.43 1.41 1.25 1.16
Adjusted total asset turnover 2.29 2.25 2.14 1.89 1.77
Financial Leverage
Reported financial leverage 3.35 3.27 3.21 3.10 3.32
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE 6.11% 10.91% 5.84% 10.54% 10.35%
Adjusted ROE
Return on Assets (ROA)
Reported ROA 1.82% 3.34% 1.82% 3.39% 3.11%
Adjusted ROA 2.85% 5.27% 2.76% 5.42% 4.75%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. CVS Health Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CVS Health Corp. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. CVS Health Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

CVS Health Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 4,614 8,344 4,149 7,910 7,179
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Profitability Ratio
Net profit margin1 1.24% 2.34% 1.29% 2.72% 2.68%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health 4,614 8,344 4,149 8,341 7,179
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Profitability Ratio
Adjusted net profit margin2 1.24% 2.34% 1.29% 2.87% 2.68%

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).

2024 Calculations

1 Net profit margin = 100 × Net income attributable to CVS Health ÷ Revenues from customers
= 100 × 4,614 ÷ 370,656 = 1.24%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to CVS Health ÷ Revenues from customers
= 100 × 4,614 ÷ 370,656 = 1.24%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. CVS Health Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Total assets 253,215 249,728 228,275 232,999 230,715
Activity Ratio
Total asset turnover1 1.46 1.43 1.41 1.25 1.16
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Adjusted total assets 161,943 158,456 150,125 153,878 151,163
Activity Ratio
Adjusted total asset turnover2 2.29 2.25 2.14 1.89 1.77

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).

2024 Calculations

1 Total asset turnover = Revenues from customers ÷ Total assets
= 370,656 ÷ 253,215 = 1.46

2 Adjusted total asset turnover = Revenues from customers ÷ Adjusted total assets
= 370,656 ÷ 161,943 = 2.29

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CVS Health Corp. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 253,215 249,728 228,275 232,999 230,715
Total CVS Health shareholders’ equity 75,560 76,461 71,015 75,075 69,389
Solvency Ratio
Financial leverage1 3.35 3.27 3.21 3.10 3.32
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 161,943 158,456 150,125 153,878 151,163
Adjusted total CVS Health shareholders’ equity (15,712) (14,811) (7,135) (4,046) (10,163)
Solvency Ratio
Adjusted financial leverage2

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= 253,215 ÷ 75,560 = 3.35

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total CVS Health shareholders’ equity
= 161,943 ÷ -15,712 =


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 4,614 8,344 4,149 7,910 7,179
Total CVS Health shareholders’ equity 75,560 76,461 71,015 75,075 69,389
Profitability Ratio
ROE1 6.11% 10.91% 5.84% 10.54% 10.35%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health 4,614 8,344 4,149 8,341 7,179
Adjusted total CVS Health shareholders’ equity (15,712) (14,811) (7,135) (4,046) (10,163)
Profitability Ratio
Adjusted ROE2

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).

2024 Calculations

1 ROE = 100 × Net income attributable to CVS Health ÷ Total CVS Health shareholders’ equity
= 100 × 4,614 ÷ 75,560 = 6.11%

2 Adjusted ROE = 100 × Adjusted net income attributable to CVS Health ÷ Adjusted total CVS Health shareholders’ equity
= 100 × 4,614 ÷ -15,712 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 4,614 8,344 4,149 7,910 7,179
Total assets 253,215 249,728 228,275 232,999 230,715
Profitability Ratio
ROA1 1.82% 3.34% 1.82% 3.39% 3.11%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health 4,614 8,344 4,149 8,341 7,179
Adjusted total assets 161,943 158,456 150,125 153,878 151,163
Profitability Ratio
Adjusted ROA2 2.85% 5.27% 2.76% 5.42% 4.75%

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).

2024 Calculations

1 ROA = 100 × Net income attributable to CVS Health ÷ Total assets
= 100 × 4,614 ÷ 253,215 = 1.82%

2 Adjusted ROA = 100 × Adjusted net income attributable to CVS Health ÷ Adjusted total assets
= 100 × 4,614 ÷ 161,943 = 2.85%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. CVS Health Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.