Analysis of Debt
Total Debt (Carrying Amount)
CVS Health Corp., balance sheet: debt
US$ in millions
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).
The total debt carrying amount exhibits a U-shaped trajectory over the five-year period from 2020 to 2024. After an initial period of contraction where total debt declined from 64,647 million US$ in 2020 to a low of 52,254 million US$ in 2022, a sustained upward trend occurred, culminating in a five-year peak of 66,270 million US$ by December 31, 2024.
- Long-Term Debt Trends
- Long-term debt, excluding the current portion, serves as the primary driver of the total debt profile. This component decreased from 59,207 million US$ in 2020 to 50,476 million US$ in 2022, before increasing significantly to 60,527 million US$ by 2024. This pattern suggests a phase of deleveraging followed by a period of increased long-term capital borrowing.
- Current Liabilities and Short-Term Obligations
- Short-term debt was not recorded between 2020 and 2022 but appeared in 2023 at 200 million US$ and grew sharply to 2,119 million US$ in 2024. Similarly, the current portion of long-term debt declined from 5,440 million US$ in 2020 to a minimum of 1,778 million US$ in 2022, before rising to 3,624 million US$ in 2024. The simultaneous increase in both short-term debt and the current portion of long-term debt indicates a growing volume of obligations maturing within the short term.
- Aggregate Debt Position
- The carrying amount of total debt in 2024 represents an increase of approximately 2.5% over the 2020 baseline. The transition from a debt reduction phase (2020-2022) to an expansion phase (2023-2024) indicates a shift in the corporate financing strategy, resulting in a higher overall leverage position at the end of the analyzed period.
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Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term debt | 2,119) |
| Long-term debt, including current portion | 58,724) |
| Total debt (fair value) | 60,843) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.64%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.98% | 2,119) | 106) | |
| 4.10% | 724) | 30) | |
| 3.88% | 2,828) | 110) | |
| 5.00% | 1,500) | 75) | |
| 2.88% | 1,750) | 50) | |
| 3.00% | 750) | 23) | |
| 3.62% | 750) | 27) | |
| 6.25% | 372) | 23) | |
| 1.30% | 2,250) | 29) | |
| 4.30% | 5,000) | 215) | |
| 5.00% | 1,000) | 50) | |
| 5.40% | 1,000) | 54) | |
| 3.25% | 1,750) | 57) | |
| 5.13% | 1,500) | 77) | |
| 3.75% | 1,500) | 56) | |
| 1.75% | 1,250) | 22) | |
| 5.25% | 750) | 39) | |
| 1.88% | 1,250) | 23) | |
| 5.55% | 1,000) | 56) | |
| 2.13% | 1,000) | 21) | |
| 5.25% | 1,750) | 92) | |
| 5.30% | 1,250) | 66) | |
| 5.70% | 1,250) | 71) | |
| 4.88% | 652) | 32) | |
| 6.63% | 771) | 51) | |
| 6.75% | 533) | 36) | |
| 4.78% | 5,000) | 239) | |
| 6.13% | 447) | 27) | |
| 4.13% | 602) | 25) | |
| 2.70% | 367) | 10) | |
| 5.75% | 133) | 8) | |
| 4.50% | 500) | 23) | |
| 4.13% | 226) | 9) | |
| 5.30% | 750) | 40) | |
| 4.75% | 375) | 18) | |
| 6.00% | 750) | 45) | |
| 5.13% | 3,500) | 179) | |
| 3.88% | 537) | 21) | |
| 5.05% | 8,000) | 404) | |
| 4.25% | 399) | 17) | |
| 5.63% | 1,250) | 70) | |
| 5.88% | 1,250) | 73) | |
| 6.05% | 1,000) | 61) | |
| 6.00% | 750) | 45) | |
| 6.75% | 750) | 51) | |
| 7.00% | 2,250) | 158) | |
| 5.10% | 1,360) | 69) | |
| Total | 66,445) | 3,082) | |
| 4.64% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 3,082 ÷ 66,445 = 4.64%