CVS Health Corp. (NYSE:CVS)

The financial data reveals several key trends regarding the intangible assets of the company over a five-year period from December 31, 2020, to December 31, 2024.

Goodwill

The goodwill value shows a slight downward trend from 79,552 million USD in 2020 to 78,150 million USD in 2022, followed by a significant increase to 91,272 million USD in 2023, where it remains stable into 2024. This indicates a potential acquisition or revaluation event in 2023 that boosted goodwill substantially.

Trademark and Indefinitely-lived Intangible Assets

Both trademarks and indefinitely-lived intangible assets maintain a constant value at 10,498 million USD throughout the period. This stability suggests no impairment or additional intangible asset recognition in these categories.

Customer Contracts/Relationships and Covenants Not to Compete

These assets fluctuate, initially increasing slightly from 24,952 million USD in 2020 to 25,084 million USD in 2021, then decreasing sharply to 21,206 million USD in 2022. The value rebounds significantly to 26,784 million USD in 2023 and slightly increases to 26,904 million USD in 2024, highlighting volatile valuation possibly influenced by contract renewals or renegotiations.

Technology

The technology intangible asset remains stable at 1,060 million USD from 2020 to 2022, followed by a moderate increase to approximately 1,250 million USD in 2023 and 2024. This gradual rise may reflect increased investment in or capitalization of technological capabilities.

Provider Networks and Value of Business Acquired

Both provider networks and the value of business acquired remain steady across all years, at 4,203 million USD and 590 million USD respectively, suggesting no changes or impairments in these categories.

Other Intangibles

The category labeled "Other" shows stability around the low 300s million USD from 2020 to 2022, followed by a sharp increase to over 830 million USD in 2023 and a slight decrease in 2024. This pattern could reflect recognition of new or reclassified intangible items in 2023.

Finitely-lived Intangible Assets

The gross carrying amount of finitely-lived intangible assets declines from 31,125 million USD in 2020 to 27,361 million USD in 2022 before rebounding to 33,773 million USD by 2024. Meanwhile, accumulated amortization steadily increases each year (in absolute terms), rising from 10,481 million USD in 2020 to 16,948 million USD in 2024. The net carrying amount mirrors these movements, decreasing significantly through 2022 and then partially recovering, which aligns with asset additions or revaluations balanced against ongoing amortization charges.

Total Intangible Assets and Goodwill & Other Intangibles

Total intangible assets decrease from 31,142 million USD in 2020 to 24,782 million USD in 2022, followed by an increase back to approximately 27,323 million USD in 2024. Similarly, the aggregate of goodwill and other intangible assets declines through 2022 from 110,694 million USD to 102,932 million USD, then significantly increases to 120,506 million USD in 2023 before settling at 118,595 million USD in 2024. This overall pattern suggests a period of asset write-down or disposals up to 2022, combined with a subsequent phase of acquisitions or asset recognition in 2023.

In summary, the analysis shows a general trend of reduction in intangible asset values until 2022, particularly in goodwill and finitely-lived assets, followed by a notable recovery and growth phase in 2023. This shift may reflect changes in corporate strategy, acquisitions, or adjustments to asset valuation methods. Amortization continues steadily, increasing accumulated amortization consistently over the years, impacting net intangible assets. Certain assets exhibit stability, while others fluctuate, indicating selective growth and reassessment within the intangible asset portfolio.

The financial data reveals several notable trends regarding asset levels, shareholders' equity, and net income over the five-year period.

Total Assets

The reported total assets demonstrate a generally stable but slightly fluctuating pattern, ranging from approximately $230.7 billion in 2020, dipping marginally in 2022, then rising to about $253.2 billion by 2024. This indicates a modest overall growth in the asset base over the period.

When adjusted for goodwill, total assets show a similar pattern but at substantially lower absolute levels, reflecting the exclusion of goodwill values. Adjusted assets remain relatively steady, with a slight decline in 2022 followed by a gradual increase through 2024, implying consistent asset quality aside from goodwill effects.

Shareholders' Equity

Reported shareholders' equity experienced a general upward trend from approximately $69.4 billion in 2020 to a peak around $76.5 billion in 2023, followed by a small decline to $75.6 billion in 2024. This suggests moderate net value accretion for equity holders within the period, with some backward movement in the final year.

Adjusted shareholders' equity, after deducting goodwill, presents a markedly different trajectory. The figures are negative throughout, with a worsening position from -$10.2 billion in 2020 to nearly -$15.7 billion in 2024. The deepening negative equity on an adjusted basis points to substantial goodwill impairments or other intangible asset adjustments affecting the equity base.

Net Income

Reported net income shows volatility, starting at approximately $7.2 billion in 2020 and rising to a peak of $8.3 billion in 2023. The figure drops sharply to $4.6 billion in 2024, indicating a significant decrease in profitability in the most recent year.

Adjusted net income closely aligns with reported net income values, except in 2021 when it appears slightly higher. This suggests that goodwill adjustments have minimal impact on net income figures over most years except for that period. The decline in net income in 2024 is consistent across both reported and adjusted measures.

In summary, reported figures indicate stable asset growth and equity expansion with some recent earnings volatility, while adjustments for goodwill reveal underlying challenges in equity valuation, with negative adjusted equity expanding. The sharp drop in net income in the last year warrants further investigation to understand contributing factors.

The financial data indicates several notable trends and variations over the period from 2020 to 2024.

Net Profit Margin

The reported net profit margin shows a fluctuating pattern, starting at 2.68% in 2020, experiencing a slight increase to 2.72% in 2021, then sharply declining to 1.29% in 2022. It recovers to 2.34% in 2023 before decreasing again to 1.24% in 2024. The adjusted net profit margin follows a similar trajectory, with a slightly higher peak at 2.87% in 2021, then mirroring the decline and partial recovery observed in the reported figures.

Total Asset Turnover

There is a consistent upward trend in both reported and adjusted total asset turnover ratios over the five-year period. Reported turnover increases steadily from 1.16 in 2020 to 1.46 in 2024. Adjusted total asset turnover values, where available, are significantly higher, rising from 1.77 in 2020 to 2.29 in 2024, indicating improved efficiency in asset utilization when adjustments are made.

Financial Leverage

The reported financial leverage ratio declines from 3.32 in 2020 to 3.10 in 2021, then shows a gradual increase through 2024, reaching 3.35. No adjusted financial leverage data is provided for comparison, limiting insights into leverage adjustments.

Return on Equity (ROE)

The reported ROE exhibits considerable variability, starting at 10.35% in 2020, peaking slightly at 10.54% in 2021, then dropping substantially to 5.84% in 2022. It rebounds to 10.91% in 2023 but falls again to 6.11% in 2024. Absence of adjusted ROE data prevents further comparative analysis.

Return on Assets (ROA)

Reported ROA follows a declining and recovering pattern similar to ROE and net profit margin, decreasing from 3.11% in 2020 to 1.82% in 2022, recovering to 3.34% in 2023, and then falling back to 1.82% in 2024. Adjusted ROA values are consistently higher across available years, with a more pronounced recovery and less severe declines, moving from 4.75% in 2020 to 5.42% in 2021, dropping to 2.76% in 2022, rebounding to 5.27% in 2023, and slightly declining to 2.85% in 2024.

Overall, the data suggests volatility in profitability metrics, particularly net profit margin and returns, over the assessed period. Asset turnover ratios indicate improving operational efficiency, especially when adjusted data is considered. The financial leverage ratio remains relatively stable with a slight upward trend in the later years. The adjusted figures for return on assets and asset turnover consistently outperform reported figures, implying that goodwill adjustments have a significant impact on efficiency and profitability measurement.

The analysis of the annual financial data reveals notable fluctuations in both reported and adjusted net income attributable to the company over the five-year period. Reported net income initially increased from 7,179 million US dollars in 2020 to 7,910 million US dollars in 2021, followed by a sharp decline to 4,149 million US dollars in 2022. This was succeeded by a recovery to 8,344 million US dollars in 2023 before experiencing another decrease to 4,614 million US dollars in 2024. The adjusted net income, available for three years in the series, closely mirrors the reported figures for corresponding years, indicating limited impact of goodwill adjustments during these periods.

Regarding profitability, the reported net profit margin displayed a declining trend overall, starting at 2.68% in 2020 and increasing marginally to 2.72% in 2021 before falling sharply to 1.29% in 2022. It partially rebounded to 2.34% in 2023, then declined again to 1.24% by 2024. The adjusted net profit margin follows a similar pattern, with a slightly higher margin in 2021 (2.87%) compared to the reported figure, suggesting some adjustment effects that improved the profitability metric in that year. The adjusted margins align exactly with reported margins in 2022, 2023, and 2024, consistent with the identical net income figures in those years.

Overall, the financial indicators demonstrate volatile profitability and net income performance across the period, with no consistent upward or downward trajectory. The variations between reported and adjusted results are minimal, except for a moderate beneficial adjustment in net profit margin in 2021. The observed fluctuations in net income and profit margins may be indicative of external market conditions or operational challenges affecting earnings stability during this timeframe.

The financial data reveals distinct trends in the company's asset base and efficiency measures over the five-year period from 2020 to 2024. Both reported and adjusted total assets exhibit moderate fluctuations, with an overall slight increase observed by the end of the timeframe.

Total Assets

Reported total assets started at 230,715 million US dollars in 2020 and showed minor variation reaching 253,215 million US dollars by 2024. This reflects an increase of approximately 9.7% over the five years.

Adjusted total assets, which exclude goodwill, consistently show lower values but follow a similar pattern with slight fluctuations. These assets rose from 151,163 million US dollars in 2020 to 161,943 million US dollars in 2024, amounting to an approximate 7.1% increase.

Total Asset Turnover Ratios

The reported total asset turnover ratio exhibits a positive upward trajectory, increasing from 1.16 in 2020 to 1.46 in 2024. This indicates improving efficiency in generating revenue relative to the asset base.

Adjusted total asset turnover, representing efficiency excluding goodwill, starts at a higher ratio of 1.77 and increases to 2.29 by 2024. The ratio has steadily risen each year, emphasizing enhanced utilization of core assets in revenue generation.

Overall, the data indicates that the company slightly expanded its asset base during the period but achieved significantly improved operational efficiency, particularly when considering the goodwill-adjusted asset base. This suggests effective management of assets leading to stronger revenue generation capabilities over time.

The reported total assets exhibited a generally moderate upward trend over the analyzed period. Starting at approximately $230.7 billion in 2020, the figure marginally increased to around $232.9 billion in 2021 before experiencing a slight decrease to about $228.3 billion in 2022. Subsequently, the total assets increased more significantly in 2023 and 2024, reaching approximately $249.7 billion and $253.2 billion respectively. This suggests measured growth in asset base towards the later years.

In contrast, the adjusted total assets, which exclude goodwill, show a more stable yet slightly declining trend. Beginning at approximately $151.2 billion in 2020, there was a mild increase to about $153.9 billion in 2021, followed by a gradual decline to roughly $150.1 billion in 2022. Thereafter, a moderate rebound is observed with adjusted assets rising to $158.5 billion in 2023 and $161.9 billion in 2024. This pattern indicates some fluctuation after adjustment, but overall a modest growth by the end of the period.

Reported total shareholders’ equity shows a fluctuating pattern with a generally upward trajectory. Equity increased from about $69.4 billion in 2020 to $75.1 billion in 2021. However, there was a decline in 2022, dropping to roughly $71.0 billion, followed by an increase to nearly $76.5 billion in 2023. A slight decrease occurred in 2024, reducing equity to approximately $75.6 billion. This reflects some volatility in equity levels but generally positive growth over the five-year period.

Adjusted shareholders’ equity, however, presents a markedly different and negative trend. Starting significantly negative at approximately -$10.2 billion in 2020, it worsened to around -$4.0 billion in 2021 but then deteriorated again in subsequent years reaching roughly -$7.1 billion in 2022 and further declining to about -$14.8 billion in 2023 and -$15.7 billion in 2024. This persistent negative adjusted equity suggests substantial goodwill or intangible asset impairments or adjustments impacting the net equity position negatively.

The reported financial leverage ratio, which measures the relationship between total assets and equity, shows a decline from 3.32 in 2020 to 3.10 in 2021, suggesting relatively less leverage in that year. It then increases again to 3.21 in 2022, followed by a further rise to 3.27 in 2023 and 3.35 in 2024, indicating an increasing reliance on liabilities to finance the assets towards the latter years. No data was available for adjusted financial leverage, which could have provided insight into leverage excluding goodwill effects.

Overall, the data demonstrate that the company's reported assets and equity are generally expanding, but adjustments removing goodwill reveal underlying weakness in equity. The negative and worsening adjusted shareholders’ equity underscores potential risks related to asset valuation or goodwill impairment. The increasing reported financial leverage in recent years suggests a trend toward greater use of debt relative to equity, which investors and stakeholders should monitor carefully.

The financial data over the five-year period exhibits notable fluctuations in net income, shareholders' equity, and return on equity (ROE) for the entity analyzed. Both reported and adjusted net incomes are presented, with the adjusted figures aligning closely to the reported net income levels except for a divergence noted in 2021.

Net Income Trends

The reported net income attributable to the company demonstrates variability, peaking in 2021 at US$7,910 million before experiencing a sharp decline to US$4,149 million in 2022. A recovery is evident in 2023, with net income reaching US$8,344 million, followed by another decrease in 2024 to US$4,614 million. The adjusted net income mirrors these trends closely, except in 2021 when it is marginally higher than the reported figure.

Shareholders’ Equity

Reported total shareholders’ equity shows a general upward trend from US$69,389 million in 2020 to a high of US$76,461 million in 2023, before slightly retreating to US$75,560 million in 2024. Conversely, the adjusted shareholders’ equity values are negative throughout the period and demonstrate increasing negative magnitude, worsening from -US$10,163 million in 2020 to -US$15,712 million in 2024, which indicates substantial deductions or adjustments impacting equity.

Return on Equity (ROE)

Reported ROE follows a pattern consistent with net income fluctuations, rising from 10.35% in 2020 to a peak of 10.91% in 2023, with notable dips to 5.84% in 2022 and 6.11% in 2024. Adjusted ROE data is not available for analysis, limiting insight into performance after accounting for adjustments.

Overall, the data points to volatility in profitability as measured by net income and ROE, with significant volatility particularly in the years 2022 and 2024. Shareholders’ equity shows a moderate increase in reported terms but deteriorates significantly when adjusted figures are considered, highlighting underlying challenges or accounting treatments that materially affect the equity base. The absence of adjusted ROE calculations precludes a full understanding of returns post-adjustment.

The financial data over the five-year period reveals notable fluctuations and trends in net income, total assets, and return on assets (ROA) for the company.

Net Income

Reported net income attributable to the company experienced variability, with an initial increase from 7,179 million US dollars in 2020 to 7,910 million in 2021, followed by a significant decline to 4,149 million in 2022. A recovery occurred in 2023 reaching 8,344 million, but this was again followed by a decrease to 4,614 million in 2024. The adjusted net income figures largely mirror this pattern, except for a slight upward adjustment in 2021, where the adjusted net income was 8,341 million compared to the reported 7,910 million.

Total Assets

Reported total assets showed moderate growth overall from 230,715 million US dollars in 2020 to 253,215 million in 2024, despite a dip in 2022 to 228,275 million. The adjusted total assets, which appear to exclude goodwill or other non-core assets, are significantly lower than reported totals but follow a similar trajectory, increasing from 151,163 million in 2020 to 161,943 million in 2024 with a slight decrease in 2022 to 150,125 million.

Return on Assets (ROA)

Both reported and adjusted ROA exhibit similar trends but differ in magnitude. Reported ROA fluctuated, starting at 3.11% in 2020, rising slightly to 3.39% in 2021, dropping to 1.82% in 2022, rebounding to 3.34% in 2023, and again declining to 1.82% in 2024. Adjusted ROA percentages are consistently higher than reported figures, beginning at 4.75% in 2020, peaking at 5.42% in 2021, then falling to 2.76% in 2022, increasing to 5.27% in 2023, and decreasing to 2.85% in 2024. This suggests that when goodwill and other adjustments are considered, the company's asset efficiency appears stronger but still follows the same cyclical pattern.

Overall, the data indicates cyclical performance with income and asset efficiency subject to fluctuations, including significant downturns in 2022 and 2024 followed by recoveries in 2023. The adjustments, primarily affecting asset values and consequently adjusted ROA, reflect a more favorable view of asset utilization excluding certain intangible assets. This cyclical pattern may warrant deeper investigation into underlying operational or market factors influencing financial results during these periods.