Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
CVS Health Corp., solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CVS Health Corp. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | CVS Health Corp. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CVS Health Corp. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | CVS Health Corp. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CVS Health Corp. debt to assets ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | CVS Health Corp. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CVS Health Corp. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CVS Health Corp. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CVS Health Corp. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
CVS Health Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Total CVS Health shareholders’ equity | 76,461) | 71,015) | 75,075) | 69,389) | 63,864) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.81 | 0.74 | 0.75 | 0.93 | 1.07 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.38 | 0.46 | 0.50 | 0.57 | 0.58 | |
| Cigna Group | 0.67 | 0.69 | 0.71 | 0.65 | 0.83 | |
| Elevance Health Inc. | 0.64 | 0.66 | 0.64 | 0.60 | 0.63 | |
| Humana Inc. | 0.74 | 0.75 | 0.80 | 0.51 | 0.49 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.47 | 0.46 | 0.51 | 0.49 | 0.51 | |
| Shockwave Medical Inc. | 1.09 | 0.05 | 0.07 | 0.07 | 0.07 | |
| UnitedHealth Group Inc. | 0.70 | 0.74 | 0.64 | 0.66 | 0.71 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.63 | 0.63 | 0.63 | 0.65 | 0.72 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.83 | 0.74 | 0.80 | 0.91 | 0.92 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= 61,610 ÷ 76,461 = 0.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CVS Health Corp. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
CVS Health Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Current portion of operating lease liabilities | 1,741) | 1,678) | 1,646) | 1,638) | 1,596) | |
| Long-term operating lease liabilities | 16,034) | 16,800) | 18,177) | 18,757) | 18,926) | |
| Total debt (including operating lease liability) | 79,385) | 70,732) | 75,999) | 85,042) | 89,002) | |
| Total CVS Health shareholders’ equity | 76,461) | 71,015) | 75,075) | 69,389) | 63,864) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.04 | 1.00 | 1.01 | 1.23 | 1.39 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.41 | 0.49 | 0.54 | 0.61 | 0.61 | |
| Cigna Group | 0.68 | 0.70 | 0.73 | 0.67 | 0.84 | |
| Elevance Health Inc. | 0.66 | 0.69 | 0.67 | 0.63 | 0.65 | |
| Humana Inc. | 0.77 | 0.79 | 0.84 | 0.54 | 0.53 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.49 | 0.48 | 0.53 | 0.51 | 0.51 | |
| Shockwave Medical Inc. | 1.15 | 0.12 | 0.20 | 0.11 | 0.12 | |
| UnitedHealth Group Inc. | 0.76 | 0.80 | 0.70 | 0.73 | 0.77 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.70 | 0.71 | 0.71 | 0.74 | 0.81 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.88 | 0.80 | 0.86 | 0.97 | 0.98 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total CVS Health shareholders’ equity
= 79,385 ÷ 76,461 = 1.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | CVS Health Corp. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Capital
CVS Health Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Total CVS Health shareholders’ equity | 76,461) | 71,015) | 75,075) | 69,389) | 63,864) | |
| Total capital | 138,071) | 123,269) | 131,251) | 134,036) | 132,344) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.45 | 0.42 | 0.43 | 0.48 | 0.52 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.28 | 0.31 | 0.34 | 0.36 | 0.37 | |
| Cigna Group | 0.40 | 0.41 | 0.42 | 0.40 | 0.45 | |
| Elevance Health Inc. | 0.39 | 0.40 | 0.39 | 0.38 | 0.39 | |
| Humana Inc. | 0.42 | 0.43 | 0.44 | 0.34 | 0.33 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.32 | 0.31 | 0.34 | 0.33 | 0.34 | |
| Shockwave Medical Inc. | 0.52 | 0.05 | 0.07 | 0.07 | 0.07 | |
| UnitedHealth Group Inc. | 0.41 | 0.43 | 0.39 | 0.40 | 0.41 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.39 | 0.38 | 0.39 | 0.42 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.45 | 0.43 | 0.44 | 0.48 | 0.48 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 61,610 ÷ 138,071 = 0.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CVS Health Corp. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
CVS Health Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Current portion of operating lease liabilities | 1,741) | 1,678) | 1,646) | 1,638) | 1,596) | |
| Long-term operating lease liabilities | 16,034) | 16,800) | 18,177) | 18,757) | 18,926) | |
| Total debt (including operating lease liability) | 79,385) | 70,732) | 75,999) | 85,042) | 89,002) | |
| Total CVS Health shareholders’ equity | 76,461) | 71,015) | 75,075) | 69,389) | 63,864) | |
| Total capital (including operating lease liability) | 155,846) | 141,747) | 151,074) | 154,431) | 152,866) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.51 | 0.50 | 0.50 | 0.55 | 0.58 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.29 | 0.33 | 0.35 | 0.38 | 0.38 | |
| Cigna Group | 0.40 | 0.41 | 0.42 | 0.40 | 0.46 | |
| Elevance Health Inc. | 0.40 | 0.41 | 0.40 | 0.39 | 0.40 | |
| Humana Inc. | 0.44 | 0.44 | 0.46 | 0.35 | 0.34 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.33 | 0.32 | 0.35 | 0.34 | 0.34 | |
| Shockwave Medical Inc. | 0.54 | 0.11 | 0.16 | 0.10 | 0.11 | |
| UnitedHealth Group Inc. | 0.43 | 0.45 | 0.41 | 0.42 | 0.44 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.41 | 0.41 | 0.41 | 0.43 | 0.45 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.44 | 0.46 | 0.49 | 0.49 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 79,385 ÷ 155,846 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | CVS Health Corp. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Assets
CVS Health Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Total assets | 249,728) | 228,275) | 232,999) | 230,715) | 222,449) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.25 | 0.23 | 0.24 | 0.28 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.20 | 0.23 | 0.24 | 0.26 | 0.27 | |
| Cigna Group | 0.20 | 0.22 | 0.22 | 0.21 | 0.24 | |
| Elevance Health Inc. | 0.23 | 0.23 | 0.24 | 0.23 | 0.26 | |
| Humana Inc. | 0.26 | 0.27 | 0.29 | 0.20 | 0.20 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.27 | 0.27 | 0.28 | 0.27 | 0.28 | |
| Shockwave Medical Inc. | 0.47 | 0.04 | 0.05 | 0.06 | 0.06 | |
| UnitedHealth Group Inc. | 0.23 | 0.23 | 0.22 | 0.22 | 0.23 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.23 | 0.23 | 0.23 | 0.24 | 0.26 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.28 | 0.29 | 0.31 | 0.31 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 61,610 ÷ 249,728 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CVS Health Corp. debt to assets ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
CVS Health Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 200) | —) | —) | —) | —) | |
| Current portion of long-term debt | 2,772) | 1,778) | 4,205) | 5,440) | 3,781) | |
| Long-term debt, excluding current portion | 58,638) | 50,476) | 51,971) | 59,207) | 64,699) | |
| Total debt | 61,610) | 52,254) | 56,176) | 64,647) | 68,480) | |
| Current portion of operating lease liabilities | 1,741) | 1,678) | 1,646) | 1,638) | 1,596) | |
| Long-term operating lease liabilities | 16,034) | 16,800) | 18,177) | 18,757) | 18,926) | |
| Total debt (including operating lease liability) | 79,385) | 70,732) | 75,999) | 85,042) | 89,002) | |
| Total assets | 249,728) | 228,275) | 232,999) | 230,715) | 222,449) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.32 | 0.31 | 0.33 | 0.37 | 0.40 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.22 | 0.24 | 0.26 | 0.27 | 0.28 | |
| Cigna Group | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | |
| Elevance Health Inc. | 0.24 | 0.24 | 0.25 | 0.24 | 0.27 | |
| Humana Inc. | 0.27 | 0.28 | 0.31 | 0.21 | 0.22 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.28 | 0.27 | 0.29 | 0.28 | 0.28 | |
| Shockwave Medical Inc. | 0.49 | 0.09 | 0.14 | 0.09 | 0.10 | |
| UnitedHealth Group Inc. | 0.25 | 0.25 | 0.24 | 0.24 | 0.26 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.26 | 0.26 | 0.27 | 0.27 | 0.29 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.29 | 0.31 | 0.33 | 0.33 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 79,385 ÷ 249,728 = 0.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | CVS Health Corp. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Financial Leverage
CVS Health Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 249,728) | 228,275) | 232,999) | 230,715) | 222,449) | |
| Total CVS Health shareholders’ equity | 76,461) | 71,015) | 75,075) | 69,389) | 63,864) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.27 | 3.21 | 3.10 | 3.32 | 3.48 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 1.90 | 2.03 | 2.10 | 2.21 | 2.18 | |
| Cigna Group | 3.30 | 3.21 | 3.29 | 3.09 | 3.44 | |
| Elevance Health Inc. | 2.77 | 2.83 | 2.70 | 2.61 | 2.44 | |
| Humana Inc. | 2.89 | 2.81 | 2.76 | 2.55 | 2.42 | |
| Intuitive Surgical Inc. | 1.16 | 1.17 | 1.14 | 1.15 | 1.18 | |
| Medtronic PLC | 1.77 | 1.73 | 1.81 | 1.79 | 1.79 | |
| Shockwave Medical Inc. | 2.34 | 1.26 | 1.43 | 1.21 | 1.20 | |
| UnitedHealth Group Inc. | 3.08 | 3.16 | 2.96 | 3.01 | 3.02 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.73 | 2.72 | 2.67 | 2.70 | 2.75 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.83 | 2.70 | 2.79 | 2.96 | 2.93 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= 249,728 ÷ 76,461 = 3.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CVS Health Corp. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
CVS Health Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to CVS Health | 8,344) | 4,149) | 7,910) | 7,179) | 6,634) | |
| Add: Net income attributable to noncontrolling interest | 24) | 16) | (12) | 13) | (3) | |
| Less: Loss from discontinued operations, net of tax | —) | —) | —) | (9) | —) | |
| Add: Income tax expense | 2,805) | 1,463) | 2,522) | 2,569) | 2,366) | |
| Add: Interest expense | 2,658) | 2,287) | 2,503) | 2,907) | 3,035) | |
| Earnings before interest and tax (EBIT) | 13,831) | 7,915) | 12,923) | 12,677) | 12,032) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 5.20 | 3.46 | 5.16 | 4.36 | 3.96 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 11.46 | 15.89 | 16.41 | 10.10 | 7.09 | |
| Cigna Group | 4.94 | 7.43 | 6.22 | 8.76 | 5.11 | |
| Elevance Health Inc. | 8.49 | 10.13 | 10.93 | 8.96 | 9.02 | |
| Humana Inc. | 7.73 | 9.89 | 11.49 | 17.52 | 15.34 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 9.43 | 10.98 | 5.21 | 4.71 | 4.60 | |
| Shockwave Medical Inc. | 26.24 | 65.07 | -7.06 | -53.14 | -53.08 | |
| UnitedHealth Group Inc. | 9.97 | 13.59 | 14.44 | 13.47 | 11.55 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 8.02 | 9.36 | 9.06 | 8.20 | 6.69 | |
| Interest Coverage, Industry | ||||||
| Health Care | 7.00 | 12.46 | 12.10 | 7.74 | 8.87 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 13,831 ÷ 2,658 = 5.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CVS Health Corp. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
CVS Health Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to CVS Health | 8,344) | 4,149) | 7,910) | 7,179) | 6,634) | |
| Add: Net income attributable to noncontrolling interest | 24) | 16) | (12) | 13) | (3) | |
| Less: Loss from discontinued operations, net of tax | —) | —) | —) | (9) | —) | |
| Add: Income tax expense | 2,805) | 1,463) | 2,522) | 2,569) | 2,366) | |
| Add: Interest expense | 2,658) | 2,287) | 2,503) | 2,907) | 3,035) | |
| Earnings before interest and tax (EBIT) | 13,831) | 7,915) | 12,923) | 12,677) | 12,032) | |
| Add: Operating lease cost | 2,532) | 2,579) | 2,633) | 2,670) | 2,720) | |
| Earnings before fixed charges and tax | 16,363) | 10,494) | 15,556) | 15,347) | 14,752) | |
| Interest expense | 2,658) | 2,287) | 2,503) | 2,907) | 3,035) | |
| Operating lease cost | 2,532) | 2,579) | 2,633) | 2,670) | 2,720) | |
| Fixed charges | 5,190) | 4,866) | 5,136) | 5,577) | 5,755) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.15 | 2.16 | 3.03 | 2.75 | 2.56 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 7.71 | 10.10 | 10.21 | 6.68 | 5.14 | |
| Cigna Group | 4.64 | 6.87 | 5.61 | 7.84 | 4.67 | |
| Elevance Health Inc. | 7.51 | 8.82 | 8.48 | 6.10 | 7.34 | |
| Humana Inc. | 6.20 | 7.10 | 8.05 | 12.02 | 9.76 | |
| Intuitive Surgical Inc. | 74.09 | 63.52 | 93.66 | 58.48 | 79.65 | |
| Medtronic PLC | 6.90 | 7.79 | 4.31 | 3.98 | 3.97 | |
| Shockwave Medical Inc. | 15.51 | 19.44 | -1.22 | -18.19 | -22.81 | |
| UnitedHealth Group Inc. | 7.27 | 8.77 | 8.80 | 8.51 | 7.65 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.70 | 6.16 | 5.95 | 5.51 | 4.75 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 5.47 | 8.87 | 8.60 | 5.72 | 6.62 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 16,363 ÷ 5,190 = 3.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CVS Health Corp. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |