Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

CVS Health Corp., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Land 1,847 1,958 1,996 2,038 2,134
Building and improvements 4,632 4,571 4,545 4,225 3,950
Fixtures and equipment 11,716 11,024 12,978 13,619 13,125
Leasehold improvements 6,725 6,511 6,238 6,242 6,077
Software 11,520 9,818 8,843 7,426 6,020
Property and equipment, gross 36,440 33,882 34,600 33,550 31,306
Accumulated depreciation and amortization (23,447) (20,699) (21,483) (20,654) (18,700)
Property and equipment, net 12,993 13,183 13,117 12,896 12,606

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
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. CVS Health Corp. property and equipment, gross decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. CVS Health Corp. property and equipment, net increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Asset Age Ratios (Summary)

CVS Health Corp., asset age ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Average age ratio 67.78% 64.84% 65.89% 65.54% 64.10%
Estimated total useful life (years) 13 13 14 14 14
Estimated age, time elapsed since purchase (years) 9 8 9 9 9
Estimated remaining life (years) 4 4 5 5 5

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. CVS Health Corp. average age ratio of depreciable property, plant and equipment improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. CVS Health Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. CVS Health Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Estimated remaining life CVS Health Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 and from 2023 to 2024.

Average Age

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 23,447 20,699 21,483 20,654 18,700
Property and equipment, gross 36,440 33,882 34,600 33,550 31,306
Land 1,847 1,958 1,996 2,038 2,134
Asset Age Ratio
Average age1 67.78% 64.84% 65.89% 65.54% 64.10%

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 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × 23,447 ÷ (36,4401,847) = 67.78%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. CVS Health Corp. average age ratio of depreciable property, plant and equipment improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Property and equipment, gross 36,440 33,882 34,600 33,550 31,306
Land 1,847 1,958 1,996 2,038 2,134
Depreciation expense 2,600 2,500 2,400 2,300 2,100
Asset Age Ratio (Years)
Estimated total useful life1 13 13 14 14 14

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 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (36,4401,847) ÷ 2,600 = 13

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. CVS Health Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 23,447 20,699 21,483 20,654 18,700
Depreciation expense 2,600 2,500 2,400 2,300 2,100
Asset Age Ratio (Years)
Time elapsed since purchase1 9 8 9 9 9

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 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= 23,447 ÷ 2,600 = 9

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. CVS Health Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Property and equipment, net 12,993 13,183 13,117 12,896 12,606
Land 1,847 1,958 1,996 2,038 2,134
Depreciation expense 2,600 2,500 2,400 2,300 2,100
Asset Age Ratio (Years)
Estimated remaining life1 4 4 5 5 5

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 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (12,9931,847) ÷ 2,600 = 4

Asset age ratio Description The company
Estimated remaining life CVS Health Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 and from 2023 to 2024.