Stock Analysis on Net
Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 6.69% = 1.99% × 3.37
Jun 30, 2024 9.60% = 2.85% × 3.37
Mar 31, 2024 9.90% = 2.93% × 3.38
Dec 31, 2023 10.91% = 3.34% × 3.27
Sep 30, 2023 11.57% = 3.42% × 3.38
Jun 30, 2023 4.02% = 1.17% × 3.44
Mar 31, 2023 5.57% = 1.66% × 3.35
Dec 31, 2022 5.84% = 1.82% × 3.21
Sep 30, 2022 4.46% = 1.36% × 3.27
Jun 30, 2022 10.86% = 3.55% × 3.06
Mar 31, 2022 10.83% = 3.43% × 3.15
Dec 31, 2021 10.54% = 3.39% × 3.10
Sep 30, 2021 10.20% = 3.23% × 3.16
Jun 30, 2021 9.83% = 3.12% × 3.16
Mar 31, 2021 10.44% = 3.22% × 3.24
Dec 31, 2020 10.35% = 3.11% × 3.32
Sep 30, 2020 11.56% = 3.41% × 3.38
Jun 30, 2020 12.14% = 3.51% × 3.46
Mar 31, 2020 11.08% = 3.13% × 3.54
Dec 31, 2019 10.39% = 2.98% × 3.48
Sep 30, 2019 — = — × 3.52
Jun 30, 2019 — = — × 3.57
Mar 31, 2019 — = — × 3.68

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 6.69% = 1.37% × 1.45 × 3.37
Jun 30, 2024 9.60% = 1.99% × 1.43 × 3.37
Mar 31, 2024 9.90% = 2.04% × 1.44 × 3.38
Dec 31, 2023 10.91% = 2.34% × 1.43 × 3.27
Sep 30, 2023 11.57% = 2.48% × 1.38 × 3.38
Jun 30, 2023 4.02% = 0.86% × 1.35 × 3.44
Mar 31, 2023 5.57% = 1.20% × 1.38 × 3.35
Dec 31, 2022 5.84% = 1.29% × 1.41 × 3.21
Sep 30, 2022 4.46% = 1.00% × 1.36 × 3.27
Jun 30, 2022 10.86% = 2.66% × 1.33 × 3.06
Mar 31, 2022 10.83% = 2.68% × 1.28 × 3.15
Dec 31, 2021 10.54% = 2.72% × 1.25 × 3.10
Sep 30, 2021 10.20% = 2.67% × 1.21 × 3.16
Jun 30, 2021 9.83% = 2.60% × 1.20 × 3.16
Mar 31, 2021 10.44% = 2.74% × 1.18 × 3.24
Dec 31, 2020 10.35% = 2.68% × 1.16 × 3.32
Sep 30, 2020 11.56% = 3.00% × 1.14 × 3.38
Jun 30, 2020 12.14% = 3.14% × 1.12 × 3.46
Mar 31, 2020 11.08% = 2.77% × 1.13 × 3.54
Dec 31, 2019 10.39% = 2.59% × 1.15 × 3.48
Sep 30, 2019 — = — × — × 3.52
Jun 30, 2019 — = — × — × 3.57
Mar 31, 2019 — = — × — × 3.68

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 6.69% = 0.74 × 0.70 × 2.62% × 1.45 × 3.37
Jun 30, 2024 9.60% = 0.75 × 0.77 × 3.44% × 1.43 × 3.37
Mar 31, 2024 9.90% = 0.74 × 0.78 × 3.51% × 1.44 × 3.38
Dec 31, 2023 10.91% = 0.75 × 0.81 × 3.87% × 1.43 × 3.27
Sep 30, 2023 11.57% = 0.74 × 0.82 × 4.06% × 1.38 × 3.38
Jun 30, 2023 4.02% = 0.72 × 0.63 × 1.91% × 1.35 × 3.44
Mar 31, 2023 5.57% = 0.72 × 0.71 × 2.37% × 1.38 × 3.35
Dec 31, 2022 5.84% = 0.74 × 0.71 × 2.46% × 1.41 × 3.21
Sep 30, 2022 4.46% = 0.77 × 0.64 × 2.04% × 1.36 × 3.27
Jun 30, 2022 10.86% = 0.76 × 0.82 × 4.26% × 1.33 × 3.06
Mar 31, 2022 10.83% = 0.77 × 0.81 × 4.30% × 1.28 × 3.15
Dec 31, 2021 10.54% = 0.76 × 0.81 × 4.45% × 1.25 × 3.10
Sep 30, 2021 10.20% = 0.75 × 0.80 × 4.45% × 1.21 × 3.16
Jun 30, 2021 9.83% = 0.74 × 0.78 × 4.48% × 1.20 × 3.16
Mar 31, 2021 10.44% = 0.74 × 0.78 × 4.73% × 1.18 × 3.24
Dec 31, 2020 10.35% = 0.74 × 0.77 × 4.72% × 1.16 × 3.32
Sep 30, 2020 11.56% = 0.73 × 0.79 × 5.21% × 1.14 × 3.38
Jun 30, 2020 12.14% = 0.74 × 0.79 × 5.39% × 1.12 × 3.46
Mar 31, 2020 11.08% = 0.73 × 0.77 × 4.92% × 1.13 × 3.54
Dec 31, 2019 10.39% = 0.74 × 0.75 × 4.71% × 1.15 × 3.48
Sep 30, 2019 — = — × — × — × — × 3.52
Jun 30, 2019 — = — × — × — × — × 3.57
Mar 31, 2019 — = — × — × — × — × 3.68

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

CVS Health Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 1.99% = 1.37% × 1.45
Jun 30, 2024 2.85% = 1.99% × 1.43
Mar 31, 2024 2.93% = 2.04% × 1.44
Dec 31, 2023 3.34% = 2.34% × 1.43
Sep 30, 2023 3.42% = 2.48% × 1.38
Jun 30, 2023 1.17% = 0.86% × 1.35
Mar 31, 2023 1.66% = 1.20% × 1.38
Dec 31, 2022 1.82% = 1.29% × 1.41
Sep 30, 2022 1.36% = 1.00% × 1.36
Jun 30, 2022 3.55% = 2.66% × 1.33
Mar 31, 2022 3.43% = 2.68% × 1.28
Dec 31, 2021 3.39% = 2.72% × 1.25
Sep 30, 2021 3.23% = 2.67% × 1.21
Jun 30, 2021 3.12% = 2.60% × 1.20
Mar 31, 2021 3.22% = 2.74% × 1.18
Dec 31, 2020 3.11% = 2.68% × 1.16
Sep 30, 2020 3.41% = 3.00% × 1.14
Jun 30, 2020 3.51% = 3.14% × 1.12
Mar 31, 2020 3.13% = 2.77% × 1.13
Dec 31, 2019 2.98% = 2.59% × 1.15
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

CVS Health Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 1.99% = 0.74 × 0.70 × 2.62% × 1.45
Jun 30, 2024 2.85% = 0.75 × 0.77 × 3.44% × 1.43
Mar 31, 2024 2.93% = 0.74 × 0.78 × 3.51% × 1.44
Dec 31, 2023 3.34% = 0.75 × 0.81 × 3.87% × 1.43
Sep 30, 2023 3.42% = 0.74 × 0.82 × 4.06% × 1.38
Jun 30, 2023 1.17% = 0.72 × 0.63 × 1.91% × 1.35
Mar 31, 2023 1.66% = 0.72 × 0.71 × 2.37% × 1.38
Dec 31, 2022 1.82% = 0.74 × 0.71 × 2.46% × 1.41
Sep 30, 2022 1.36% = 0.77 × 0.64 × 2.04% × 1.36
Jun 30, 2022 3.55% = 0.76 × 0.82 × 4.26% × 1.33
Mar 31, 2022 3.43% = 0.77 × 0.81 × 4.30% × 1.28
Dec 31, 2021 3.39% = 0.76 × 0.81 × 4.45% × 1.25
Sep 30, 2021 3.23% = 0.75 × 0.80 × 4.45% × 1.21
Jun 30, 2021 3.12% = 0.74 × 0.78 × 4.48% × 1.20
Mar 31, 2021 3.22% = 0.74 × 0.78 × 4.73% × 1.18
Dec 31, 2020 3.11% = 0.74 × 0.77 × 4.72% × 1.16
Sep 30, 2020 3.41% = 0.73 × 0.79 × 5.21% × 1.14
Jun 30, 2020 3.51% = 0.74 × 0.79 × 5.39% × 1.12
Mar 31, 2020 3.13% = 0.73 × 0.77 × 4.92% × 1.13
Dec 31, 2019 2.98% = 0.74 × 0.75 × 4.71% × 1.15
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

CVS Health Corp., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 1.37% = 0.74 × 0.70 × 2.62%
Jun 30, 2024 1.99% = 0.75 × 0.77 × 3.44%
Mar 31, 2024 2.04% = 0.74 × 0.78 × 3.51%
Dec 31, 2023 2.34% = 0.75 × 0.81 × 3.87%
Sep 30, 2023 2.48% = 0.74 × 0.82 × 4.06%
Jun 30, 2023 0.86% = 0.72 × 0.63 × 1.91%
Mar 31, 2023 1.20% = 0.72 × 0.71 × 2.37%
Dec 31, 2022 1.29% = 0.74 × 0.71 × 2.46%
Sep 30, 2022 1.00% = 0.77 × 0.64 × 2.04%
Jun 30, 2022 2.66% = 0.76 × 0.82 × 4.26%
Mar 31, 2022 2.68% = 0.77 × 0.81 × 4.30%
Dec 31, 2021 2.72% = 0.76 × 0.81 × 4.45%
Sep 30, 2021 2.67% = 0.75 × 0.80 × 4.45%
Jun 30, 2021 2.60% = 0.74 × 0.78 × 4.48%
Mar 31, 2021 2.74% = 0.74 × 0.78 × 4.73%
Dec 31, 2020 2.68% = 0.74 × 0.77 × 4.72%
Sep 30, 2020 3.00% = 0.73 × 0.79 × 5.21%
Jun 30, 2020 3.14% = 0.74 × 0.79 × 5.39%
Mar 31, 2020 2.77% = 0.73 × 0.77 × 4.92%
Dec 31, 2019 2.59% = 0.74 × 0.75 × 4.71%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.