Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 253,215 249,728 228,275 232,999 230,715
Adjustment to Total Debt
Total debt (as reported) 66,270 61,610 52,254 56,176 64,647
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current portion of operating lease liabilities 1,751 1,741 1,678 1,646 1,638
Add: Long-term operating lease liabilities 14,899 16,034 16,800 18,177 18,757
Total debt (adjusted) 82,920 79,385 70,732 75,999 85,042

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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

CVS Health Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 1.46 1.43 1.41 1.25 1.16
Adjusted total asset turnover 1.46 1.43 1.41 1.25 1.16
Debt to Equity2
Reported debt to equity 0.88 0.81 0.74 0.75 0.93
Adjusted debt to equity 1.10 1.04 1.00 1.01 1.23
Return on Assets3 (ROA)
Reported ROA 1.82% 3.34% 1.82% 3.39% 3.11%
Adjusted ROA 1.82% 3.34% 1.82% 3.39% 3.11%

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 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. CVS Health Corp. adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as 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 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 Operating Leases
Selected Financial Data (US$ in millions)
Revenues from customers 370,656 356,623 321,629 290,912 267,908
Adjusted total assets 253,215 249,728 228,275 232,999 230,715
Activity Ratio
Adjusted total asset turnover2 1.46 1.43 1.41 1.25 1.16

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 ÷ 253,215 = 1.46

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 Debt to Equity

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 debt 66,270 61,610 52,254 56,176 64,647
Total CVS Health shareholders’ equity 75,560 76,461 71,015 75,075 69,389
Solvency Ratio
Debt to equity1 0.88 0.81 0.74 0.75 0.93
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 82,920 79,385 70,732 75,999 85,042
Total CVS Health shareholders’ equity 75,560 76,461 71,015 75,075 69,389
Solvency Ratio
Adjusted debt to equity2 1.10 1.04 1.00 1.01 1.23

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 Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= 66,270 ÷ 75,560 = 0.88

2 Adjusted debt to equity = Adjusted total debt ÷ Total CVS Health shareholders’ equity
= 82,920 ÷ 75,560 = 1.10

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. CVS Health Corp. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

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 Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 4,614 8,344 4,149 7,910 7,179
Adjusted total assets 253,215 249,728 228,275 232,999 230,715
Profitability Ratio
Adjusted ROA2 1.82% 3.34% 1.82% 3.39% 3.11%

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 × Net income attributable to CVS Health ÷ Adjusted total assets
= 100 × 4,614 ÷ 253,215 = 1.82%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as 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.