CVS Health Corp. (NYSE:CVS)

Total Asset Turnover

The reported and adjusted total asset turnover ratios demonstrate a consistent upward trend from 1.16 in 2020 to 1.46 in 2024. This indicates an improving efficiency in asset utilization over the period, suggesting that the company is generating increasing revenue per unit of asset.

Current Ratio

Both reported and adjusted current ratios show a slight decline from around 0.91 in 2020 to approximately 0.81-0.82 in 2024. This downward trend suggests a decreasing short-term liquidity position, indicating potential challenges in meeting short-term obligations.

Debt to Equity Ratio

The reported debt to equity ratio decreased from 0.93 in 2020 to 0.74 in 2022 but subsequently increased to 0.88 by 2024. The adjusted ratio follows a similar pattern but at higher levels, ending above 1.0 in 2024. This indicates an overall increase in leverage after an initial reduction, implying a growing reliance on debt financing relative to equity towards the later years.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios exhibit a slight downward movement from 2020 through 2022, followed by a gradual increase up to 2024. The values are generally below 0.53, reflecting a moderate and stable use of debt within the company’s capital structure but with a tendency to increase leverage in recent years.

Financial Leverage

Reported and adjusted financial leverage ratios show minor fluctuations but generally increase from 2020 to 2024. The figures rise from mid-3.0 ranges to approximately 3.35 (reported) and 3.17 (adjusted), suggesting a modest increase in total asset financing through debt.

Net Profit Margin

The net profit margin presents volatility, with reported margins declining substantially from 2.68% in 2020 to 1.24% in 2024, with a notable dip to 1.29% in 2022 before a slight recovery in 2023. Adjusted margins reflect even more dramatic variances, including a negative margin in 2022. This indicates fluctuating profitability, with some periods of losses when adjustments are considered.

Return on Equity (ROE)

Reported ROE similarly declines from around 10.35% in 2020 to 6.11% in 2024, with a sharp dip in 2022 followed by partial recovery in 2023. Adjusted ROE drops below zero in 2022, indicating negative shareholder returns that year before improving but remaining below earlier levels. This variability aligns with the profit margin trends, reflecting diminished and unstable returns to equity holders.

Return on Assets (ROA)

ROA figures demonstrate a declining and volatile pattern, with reported returns falling from 3.11% in 2020 to 1.82% in 2024, including a low point in 2022. Adjusted ROA shows a loss in 2022 and only partial recovery by 2024. These trends suggest a deterioration in asset profitability and efficiency during the period under review.

The financial data reveals consistent growth in revenues over the five-year period. Revenues increased steadily from approximately $267.9 billion in 2020 to $370.7 billion in 2024, indicating a strong upward trend in sales performance.

Total assets displayed relatively minor fluctuations, initially rising slightly from $230.7 billion at the end of 2020 to $233.0 billion at the end of 2021, then experiencing a small decline in 2022 to $228.3 billion. Subsequently, total assets increased again to $249.7 billion in 2023 and further to $253.2 billion in 2024, denoting a general upward movement with a short-term dip in 2022.

The reported total asset turnover ratio, which measures the efficiency of asset usage in generating revenue, demonstrated a continuous improvement over the period. The ratio increased from 1.16 in 2020 to 1.46 in 2024, indicating that the company became progressively more efficient at utilizing its assets to produce sales. This positive trend suggests enhanced operational productivity or a shift towards higher-margin or more asset-light revenue streams.

Adjusted total assets closely mirrored the trends observed in reported total assets, with figures slightly above or nearly equivalent across the years. Consequently, the adjusted total asset turnover ratio matches the reported ratio throughout the timeframe, reinforcing the findings regarding asset efficiency improvements.

Revenue Trends

Steady and significant growth each year from 2020 to 2024.

Total Assets Trends

Minor initial growth, a slight decline in 2022, followed by a resumption of modest growth through 2023 and 2024.

Total Asset Turnover Ratio

Continuous increase from 1.16 to 1.46, indicating improving asset utilization.

Adjusted Assets and Turnover

Trends mirror reported assets and turnover closely, confirming the reliability of these measures.

The analysis of the annual financial data reveals several noteworthy trends in the liquidity metrics over the given period.

Current Assets

Current assets showed a steady increase from $56,369 million at the end of 2020 to $68,645 million by the end of 2024. This represents a gradual growth, reflecting an expansion in liquid and near-liquid resources available to the company over the five-year span.

Current Liabilities

Current liabilities also increased consistently during the same period, rising from $62,017 million in 2020 to $84,609 million in 2024. The growth in obligations appears to outpace the growth in current assets, which has implications on the company's short-term liquidity strength.

Reported Current Ratio

The reported current ratio, an indicator of the company's ability to cover its short-term liabilities with current assets, showed a fluctuating yet declining trend. Beginning at 0.91 in 2020, it dropped to 0.81 by the end of 2024. The ratio falling below 1.0 in all years signals that current liabilities exceed current assets, with the gap widening slightly towards 2024.

Adjusted Current Assets

Adjusted current assets closely mirror the reported current assets values, increasing from $56,727 million in 2020 to $69,052 million in 2024. The adjustment does not significantly alter the trend but slightly elevates the totals each year compared to the unadjusted figures.

Adjusted Current Ratio

The adjusted current ratio follows a similar pattern to the reported current ratio, remaining consistently below 1.0 and declining over the period. Starting at 0.91 in 2020, it modestly decreases to 0.82 in 2024. This suggests that adjustments to current assets have minimal impact on improving perceived liquidity challenges.

In summary, the company’s liquidity position has exhibited modest asset growth but faster-growing current liabilities, resulting in a consistent current ratio below the ideal benchmark of 1.0. Both reported and adjusted ratios indicate a declining ability to cover short-term obligations, highlighting a potential area for management focus to ensure financial stability in the near term.

Total Debt

The total debt decreased from 64,647 million USD in 2020 to 52,254 million USD in 2022, reflecting a reduction over this period. However, it subsequently increased to 66,270 million USD by 2024, surpassing the 2020 level.

Total CVS Health Shareholders’ Equity

Shareholders’ equity showed an overall upward trend, rising from 69,389 million USD in 2020 to 75,560 million USD in 2024. The equity peaked at 76,461 million USD in 2023 before a slight decline in the following year.

Reported Debt to Equity Ratio

The reported debt to equity ratio demonstrated a downward trend from 0.93 in 2020 to 0.74 in 2022, indicating improved leverage and a stronger equity base relative to debt. After 2022, the ratio increased to 0.88 by 2024, which corresponds to the rise in total debt during this period.

Adjusted Total Debt

Adjusted total debt followed a similar trajectory to total debt, starting at 85,042 million USD in 2020 and declining to 70,732 million USD in 2022. Thereafter, the figure increased steadily to reach 82,920 million USD in 2024.

Adjusted Total Shareholders’ Equity

Adjusted shareholders’ equity increased from 76,853 million USD in 2020 to a peak of 81,290 million USD in 2023. A slight decline to 79,943 million USD occurred in 2024, consistent with the pattern observed in the unadjusted equity figures.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 1.11 in 2020 to a low of 0.93 in 2021, remaining stable around 0.94 in 2022. From 2022 onward, the ratio gradually increased, reaching 1.04 in 2024. This indicates a reversal in trend with leverage increasing once again after an initial improvement.

Total Debt

The total debt exhibits a declining trend from 64,647 million USD in 2020 to 52,254 million USD in 2022, followed by an increase to 66,270 million USD by 2024. This indicates initial deleveraging efforts in the first three years, with a reversal toward higher debt levels in the last two recorded years.

Total Capital

Total capital decreases from 134,036 million USD in 2020 to 123,269 million USD in 2022, then experiences a recovery reaching 141,830 million USD in 2024. This suggests fluctuations likely tied to changes in equity or retained earnings, with a dip followed by growth.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreases from 0.48 in 2020 to 0.42 in 2022, reflecting a reduction in leverage. Subsequently, it increases to 0.47 by 2024, signaling a return toward higher leverage positions in recent years, in line with the total debt movements.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to reported debt, decreasing from 85,042 million USD in 2020 to 70,732 million USD in 2022, then increasing to 82,920 million USD by 2024. This adjusted measure, which likely accounts for off-balance sheet liabilities or other adjustments, confirms the initial deleveraging and subsequent increase in debt levels.

Adjusted Total Capital

Adjusted total capital decreases steadily from 161,895 million USD in 2020 to 146,129 million USD in 2022, then rises to 162,863 million USD by 2024. This trend indicates a drop in capital base during the middle years, followed by a recovery consistent with reported total capital trends.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declines from 0.53 in 2020 to 0.48 in 2021 and remains steady through 2022, then gradually increases to 0.51 by 2024. The ratio consistently stays above the reported debt to capital ratio, suggesting that adjusted debt metrics paint a more leveraged picture. The trend reflects moderate deleveraging initially, followed by a modest increase in leverage in recent years.

Total Assets

The total assets of the company showed a generally stable trend from 2020 to 2024. Initial values were around 230,715 million US dollars in 2020, with a slight increase observed by 2021, followed by a minor dip in 2022. Subsequently, assets increased notably in 2023 and continued a moderate rise into 2024, reaching 253,215 million US dollars.

Total Shareholders’ Equity

Total shareholders’ equity experienced fluctuations over the observed period. Starting at 69,389 million US dollars in 2020, equity increased in 2021, dropped in 2022, then rose again in 2023 before a slight decrease in 2024, ending at 75,560 million US dollars. This indicates some volatility in equity levels across these years.

Reported Financial Leverage

The reported financial leverage ratio, which reflects the relationship between total assets and shareholders’ equity, showed a general increasing trend after a decline in 2021. Beginning at 3.32 in 2020, it decreased to 3.10 in 2021, then rose progressively to 3.21 in 2022, 3.27 in 2023, and 3.35 in 2024. The increase in leverage in recent years suggests a higher reliance on debt or other liabilities relative to equity.

Adjusted Total Assets

The adjusted total assets closely mirrored the trend in reported total assets. Values rose modestly from 231,073 million US dollars in 2020 to 233,338 million in 2021, decreased in 2022, then increased substantially in 2023 and again slightly in 2024, peaking at 253,622 million US dollars. This consistency supports the reported asset stability and growth pattern.

Adjusted Total Shareholders’ Equity

Adjusted shareholders’ equity showed similar fluctuations as the reported equity but at generally higher values. Starting at 76,853 million US dollars in 2020, equity increased in 2021, decreased in 2022, rebounded in 2023, and then slightly decreased in 2024, finishing at 79,943 million US dollars. The adjusted figures indicate a generally stronger equity base than the reported numbers, though with comparable volatility.

Adjusted Financial Leverage

The adjusted financial leverage ratio displayed a decreasing trend from 2020 to 2021, moving from 3.01 to 2.85, followed by an ascending trajectory in subsequent years: 3.03 in 2022, 3.08 in 2023, and 3.17 in 2024. This trend reflects a moderate increase in leverage, although consistently lower than the reported leverage ratios, suggesting adjustments potentially reducing perceived financial risk or better reflecting asset and equity valuations.

The financial data reveals several noteworthy trends over the observed five-year period. Revenues from customers exhibit a consistent upward trajectory, increasing each year from $267,908 million in 2020 to $370,656 million in 2024. This steady revenue growth indicates a positive expansion in the company's sales or service volume.

Net Income Attributable to CVS Health

Net income figures show considerable fluctuations. The net income rose from $7,179 million in 2020 to $7,910 million in 2021, before sharply declining to $4,149 million in 2022. A recovery is observed in 2023 with net income reaching $8,344 million, followed by a decline again to $4,614 million in 2024. This volatility suggests an inconsistent profitability pattern across the years.

Reported Net Profit Margin

The reported net profit margin echoes the pattern of net income, starting at 2.68% in 2020, slightly rising to 2.72% in 2021, then falling significantly to 1.29% in 2022. It recovers to 2.34% in 2023 before declining again to 1.24% in 2024. This indicates that profitability margins have been inconsistent, correlating with the fluctuations in net income despite revenue growth.

Adjusted Net Income

The adjusted net income data further underscores profit variability. It remained relatively stable around $7,000 million in 2020 and 2021 but turned negative at -$346 million in 2022, indicating potential extraordinary items or adjustments negatively impacting profitability that year. The company then demonstrated strong adjusted earnings recovery to $8,669 million in 2023, followed by a decrease to $4,255 million in 2024.

Adjusted Net Profit Margin

Similar to the adjusted net income, the adjusted net profit margin shows a decline from 2.64% in 2020 to 2.41% in 2021, dipping below zero to -0.11% in 2022. This again suggests that 2022 was an atypical year with earnings difficulties. Margins improved to 2.43% in 2023 but dropped to 1.15% in 2024, affirming ongoing volatility in adjusted profitability.

Overall, the data reflects sustained revenue growth over the five-year period, indicating business expansion or increased market penetration. However, both reported and adjusted net income along with their respective profit margins reveal significant swings, pointing to inconsistent profitability performance. The year 2022 stands out as an anomaly with a sharp decline in adjusted income and a negative adjusted margin, possibly due to non-recurring charges or operational challenges. Despite recovery in 2023, the decline in 2024 suggests continuing challenges in maintaining stable profitability margins in the face of growing revenues.

Net Income attributable to CVS Health

The net income shows fluctuations over the reported years. It increased from 7,179 million USD in 2020 to 7,910 million USD in 2021, before dropping sharply to 4,149 million USD in 2022. The figure then rose again substantially to 8,344 million USD in 2023, followed by a decline to 4,614 million USD in 2024. This pattern indicates volatility in earnings over the five-year period.

Total CVS Health shareholders’ equity

Shareholders’ equity generally demonstrated a steady upward trend from 69,389 million USD in 2020 to 75,075 million USD in 2021. It then slightly declined to 71,015 million USD in 2022 but recovered to 76,461 million USD in 2023. In 2024, a mild decrease was observed, with equity standing at 75,560 million USD. Overall, the equity base remains relatively stable with minor fluctuations.

Reported Return on Equity (ROE)

The reported ROE experienced variability consistent with net income changes. Starting at 10.35% in 2020, it slightly increased to 10.54% in 2021 before dropping markedly to 5.84% in 2022. The ROE rebounded robustly to 10.91% in 2023 but declined again to 6.11% in 2024, reflecting the impact of earnings volatility on profitability measures.

Adjusted net income

The adjusted net income demonstrates greater volatility compared to reported net income. It decreased from 7,071 million USD in 2020 to 7,002 million USD in 2021, then declined sharply to a negative figure of -346 million USD in 2022. This was followed by a strong recovery to 8,669 million USD in 2023, before another drop to 4,255 million USD in 2024. The negative adjusted net income in 2022 suggests extraordinary or non-recurring charges impacting profitability that year.

Adjusted total shareholders’ equity

The adjusted shareholders’ equity figures show a similar trend to the total shareholders’ equity but represent slightly higher base values. It increased from 76,853 million USD in 2020 to 81,990 million USD in 2021, declined to 75,397 million USD in 2022, then rose to 81,290 million USD in 2023, and finally decreased to 79,943 million USD in 2024. This pattern reflects moderate fluctuations in the adjusted equity position.

Adjusted ROE

Adjusted ROE follows a highly variable trajectory. It decreased from 9.2% in 2020 to 8.54% in 2021, then plunged to a negative -0.46% in 2022, consistent with the negative adjusted net income for that year. It sharply improved to 10.66% in 2023 but dropped significantly again to 5.32% in 2024. The fluctuations suggest sensitivity to the adjustments made in income and equity calculations and highlight the operational challenges in 2022.

Over the observed five-year period, the net income attributable to the company displayed considerable fluctuations, with peaks in 2021 and 2023 followed by marked declines in 2022 and 2024. Specifically, net income increased from $7,179 million in 2020 to a high of $7,910 million in 2021, then declined sharply to $4,149 million in 2022. The metric rebounded to $8,344 million in 2023 before falling again to $4,614 million in 2024.

Total assets exhibited a generally upward trajectory, increasing from $230,715 million in 2020 to $253,215 million in 2024. There was a slight decrease in 2022 compared to 2021, but overall asset growth resumed thereafter. This pattern indicates incremental investment or asset accumulation over time, despite minor setbacks.

The reported Return on Assets (ROA) followed a pattern somewhat mirroring net income changes. It rose modestly from 3.11% in 2020 to 3.39% in 2021, then declined significantly to 1.82% in 2022. After a recovery to 3.34% in 2023, ROA fell again to 1.82% in 2024, suggesting fluctuating profitability relative to asset base.

Adjusted net income showed more pronounced volatility than net income attributable. It remained relatively stable in 2020 and 2021, around $7,000 million, but dropped into negative territory at -$346 million in 2022. A strong recovery to $8,669 million occurred in 2023, followed by another decrease to $4,255 million in 2024. This pattern indicates the presence of extraordinary or non-recurring items impacting earnings, especially evident in 2022.

Adjusted total assets maintained a consistent upward trend, increasing from $231,073 million in 2020 to $253,622 million in 2024. The adjusted asset figures closely track the reported total assets, confirming the general growth in asset base.

Adjusted ROA demonstrated similar trends to the reported ROA but featured a more significant dip in 2022, turning negative at -0.15%, indicating an adjusted operating loss relative to assets that year. The adjusted ROA improved sharply to 3.47% in 2023 before decreasing to 1.68% in 2024. This volatility reflects the impact of adjustments on profitability measurements and highlights 2022 as an anomalous year.

In summary, the data reveal recurring fluctuations in profitability with consistent growth in total assets. The year 2022 stands out as an outlier with notably reduced or negative adjusted earnings and diminished asset profitability. Recovery occurred in 2023, followed by less robust results in 2024. These patterns suggest cyclical operational performance influenced by extraordinary factors reflected in adjusted income and returns metrics.