Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

CVS Health Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	91,272)	78,150)	79,121)	79,552)	79,749)
Trademark	10,498)	10,498)	10,498)	10,498)	10,498)
Indefinitely-lived intangible assets	10,498)	10,498)	10,498)	10,498)	10,498)
Customer contracts/relationships and covenants not to compete	26,784)	21,206)	25,084)	24,952)	25,447)
Technology	1,253)	1,060)	1,060)	1,060)	1,060)
Provider networks	4,203)	4,203)	4,203)	4,203)	4,200)
Value of Business Acquired	590)	590)	590)	590)	590)
Other	838)	302)	318)	320)	364)
Finitely-lived intangible assets, gross carrying amount	33,668)	27,361)	31,255)	31,125)	31,661)
Accumulated amortization	(14,932)	(13,077)	(12,727)	(10,481)	(9,038)
Finitely-lived intangible assets, net carrying amount	18,736)	14,284)	18,528)	20,644)	22,623)
Intangible assets	29,234)	24,782)	29,026)	31,142)	33,121)
Goodwill and other intangibles	120,506)	102,932)	108,147)	110,694)	112,870)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	CVS Health Corp. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	CVS Health Corp. intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Goodwill and other intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	CVS Health Corp. goodwill and other intangibles decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

CVS Health Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	249,728)	228,275)	232,999)	230,715)	222,449)
Less: Goodwill	91,272)	78,150)	79,121)	79,552)	79,749)
Total assets (adjusted)	158,456)	150,125)	153,878)	151,163)	142,700)
Adjustment to Total CVS Health Shareholders’ Equity
Total CVS Health shareholders’ equity (as reported)	76,461)	71,015)	75,075)	69,389)	63,864)
Less: Goodwill	91,272)	78,150)	79,121)	79,552)	79,749)
Total CVS Health shareholders’ equity (adjusted)	(14,811)	(7,135)	(4,046)	(10,163)	(15,885)
Adjustment to Net Income Attributable To CVS Health
Net income attributable to CVS Health (as reported)	8,344)	4,149)	7,910)	7,179)	6,634)
Add: Goodwill impairment	—)	—)	431)	—)	—)
Net income attributable to CVS Health (adjusted)	8,344)	4,149)	8,341)	7,179)	6,634)

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).

CVS Health Corp., Financial Data: Reported vs. Adjusted

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CVS Health Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	2.34%	1.29%	2.72%	2.68%	2.59%
Adjusted net profit margin	2.34%	1.29%	2.87%	2.68%	2.59%
Total Asset Turnover
Reported total asset turnover	1.43	1.41	1.25	1.16	1.15
Adjusted total asset turnover	2.25	2.14	1.89	1.77	1.79
Financial Leverage
Reported financial leverage	3.27	3.21	3.10	3.32	3.48
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	10.91%	5.84%	10.54%	10.35%	10.39%
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	3.34%	1.82%	3.39%	3.11%	2.98%
Adjusted ROA	5.27%	2.76%	5.42%	4.75%	4.65%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	CVS Health Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CVS Health Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	CVS Health Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

CVS Health Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health	8,344)	4,149)	7,910)	7,179)	6,634)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Profitability Ratio
Net profit margin¹	2.34%	1.29%	2.72%	2.68%	2.59%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	8,344)	4,149)	8,341)	7,179)	6,634)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Profitability Ratio
Adjusted net profit margin²	2.34%	1.29%	2.87%	2.68%	2.59%

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).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to CVS Health ÷ Revenues from customers
= 100 × 8,344 ÷ 356,623 = 2.34%

² Adjusted net profit margin = 100 × Adjusted net income attributable to CVS Health ÷ Revenues from customers
= 100 × 8,344 ÷ 356,623 = 2.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	CVS Health Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Total assets	249,728)	228,275)	232,999)	230,715)	222,449)
Activity Ratio
Total asset turnover¹	1.43	1.41	1.25	1.16	1.15
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Adjusted total assets	158,456)	150,125)	153,878)	151,163)	142,700)
Activity Ratio
Adjusted total asset turnover²	2.25	2.14	1.89	1.77	1.79

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).

2023 Calculations

¹ Total asset turnover = Revenues from customers ÷ Total assets
= 356,623 ÷ 249,728 = 1.43

² Adjusted total asset turnover = Revenues from customers ÷ Adjusted total assets
= 356,623 ÷ 158,456 = 2.25

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CVS Health Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
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
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	158,456)	150,125)	153,878)	151,163)	142,700)
Adjusted total CVS Health shareholders’ equity	(14,811)	(7,135)	(4,046)	(10,163)	(15,885)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= 249,728 ÷ 76,461 = 3.27

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total CVS Health shareholders’ equity
= 158,456 ÷ -14,811 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health	8,344)	4,149)	7,910)	7,179)	6,634)
Total CVS Health shareholders’ equity	76,461)	71,015)	75,075)	69,389)	63,864)
Profitability Ratio
ROE¹	10.91%	5.84%	10.54%	10.35%	10.39%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	8,344)	4,149)	8,341)	7,179)	6,634)
Adjusted total CVS Health shareholders’ equity	(14,811)	(7,135)	(4,046)	(10,163)	(15,885)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

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).

2023 Calculations

¹ ROE = 100 × Net income attributable to CVS Health ÷ Total CVS Health shareholders’ equity
= 100 × 8,344 ÷ 76,461 = 10.91%

² Adjusted ROE = 100 × Adjusted net income attributable to CVS Health ÷ Adjusted total CVS Health shareholders’ equity
= 100 × 8,344 ÷ -14,811 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health	8,344)	4,149)	7,910)	7,179)	6,634)
Total assets	249,728)	228,275)	232,999)	230,715)	222,449)
Profitability Ratio
ROA¹	3.34%	1.82%	3.39%	3.11%	2.98%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	8,344)	4,149)	8,341)	7,179)	6,634)
Adjusted total assets	158,456)	150,125)	153,878)	151,163)	142,700)
Profitability Ratio
Adjusted ROA²	5.27%	2.76%	5.42%	4.75%	4.65%

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).

2023 Calculations

¹ ROA = 100 × Net income attributable to CVS Health ÷ Total assets
= 100 × 8,344 ÷ 249,728 = 3.34%

² Adjusted ROA = 100 × Adjusted net income attributable to CVS Health ÷ Adjusted total assets
= 100 × 8,344 ÷ 158,456 = 5.27%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	CVS Health Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

CVS Health Corp. (NYSE:CVS)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

CVS Health Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

CVS Health Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)