Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (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., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	2,819)	2,803)	2,285)	2,615)	2,450)
State	662)	735)	665)	518)	565)
Current	3,481)	3,538)	2,950)	3,133)	3,015)
Federal	(537)	(1,569)	(306)	(450)	(535)
State	(139)	(506)	(122)	(114)	(114)
Deferred	(676)	(2,075)	(428)	(564)	(649)
Income tax provision	2,805)	1,463)	2,522)	2,569)	2,366)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	CVS Health Corp. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	CVS Health Corp. deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	CVS Health Corp. income tax provision decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

CVS Health Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	3.70%	3.20%	4.10%	3.20%	4.00%
Health insurer fee	0.00%	0.00%	0.00%	2.20%	0.00%
Legal charges	0.00%	3.50%	0.00%	0.00%	0.00%
Basis difference upon disposition of subsidiary	0.00%	1.70%	0.00%	-1.20%	0.00%
Prior year refunds and unrecognized tax benefits	0.00%	-2.70%	-1.20%	0.00%	0.00%
Other	0.40%	-0.70%	0.30%	1.10%	1.30%
Effective income tax rate	25.10%	26.00%	24.20%	26.30%	26.30%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

CVS Health Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Lease and rents	5,059)	5,242)	5,563)	5,742)	5,731)
Legal charges	1,205)	1,260)	19)	—)	—)
Inventory	94)	103)	99)	80)	23)
Employee benefits	168)	153)	193)	238)	191)
Bad debts and other allowances	606)	480)	489)	395)	294)
Retirement benefits	—)	—)	—)	—)	47)
Net operating loss and capital loss carryforwards	409)	266)	416)	568)	480)
Deferred income	62)	66)	78)	43)	36)
Insurance reserves	356)	455)	501)	489)	430)
Investments	56)	293)	—)	—)	—)
Payroll tax deferral	—)	—)	87)	173)	—)
Other	372)	335)	377)	500)	451)
Deferred income tax assets, before valuation allowance	8,387)	8,653)	7,822)	8,228)	7,683)
Valuation allowance	(385)	(532)	(325)	(454)	(374)
Deferred income tax assets	8,002)	8,121)	7,497)	7,774)	7,309)
Retirement benefits	(112)	(92)	(105)	(29)	—)
Investments	—)	—)	(334)	(421)	(289)
Lease and rents	(4,469)	(4,639)	(4,947)	(5,368)	(5,464)
Depreciation and amortization	(7,732)	(7,139)	(8,381)	(8,750)	(8,850)
Deferred income tax liabilities	(12,313)	(11,870)	(13,767)	(14,568)	(14,603)
Net deferred income tax assets (liabilities)	(4,311)	(3,749)	(6,270)	(6,794)	(7,294)

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
Deferred income tax assets, before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	CVS Health Corp. deferred income tax assets, before valuation allowance increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	CVS Health Corp. deferred income tax assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Net deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	CVS Health Corp. net deferred income tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

CVS Health Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred income tax assets	—)	131)	—)	—)	—)
	Deferred income tax liabilities	4,311)	3,880)	6,270)	6,794)	7,294)

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
Deferred income tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	CVS Health Corp. deferred income tax liabilities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

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: Noncurrent deferred tax assets, net	—)	131)	—)	—)	—)
Total assets (adjusted)	249,728)	228,144)	232,999)	230,715)	222,449)
Adjustment to Total Liabilities
Total liabilities (as reported)	173,092)	156,960)	157,618)	161,014)	158,279)
Less: Noncurrent deferred tax liabilities, net	4,311)	3,880)	6,270)	6,794)	7,294)
Total liabilities (adjusted)	168,781)	153,080)	151,348)	154,220)	150,985)
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: Net deferred tax assets (liabilities)	(4,311)	(3,749)	(6,270)	(6,794)	(7,294)
Total CVS Health shareholders’ equity (adjusted)	80,772)	74,764)	81,345)	76,183)	71,158)
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: Deferred income tax expense (benefit)	(676)	(2,075)	(428)	(564)	(649)
Net income attributable to CVS Health (adjusted)	7,668)	2,074)	7,482)	6,615)	5,985)

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	2.15%	0.64%	2.57%	2.47%	2.34%
Total Asset Turnover
Reported total asset turnover	1.43	1.41	1.25	1.16	1.15
Adjusted total asset turnover	1.43	1.41	1.25	1.16	1.15
Financial Leverage
Reported financial leverage	3.27	3.21	3.10	3.32	3.48
Adjusted financial leverage	3.09	3.05	2.86	3.03	3.13
Return on Equity (ROE)
Reported ROE	10.91%	5.84%	10.54%	10.35%	10.39%
Adjusted ROE	9.49%	2.77%	9.20%	8.68%	8.41%
Return on Assets (ROA)
Reported ROA	3.34%	1.82%	3.39%	3.11%	2.98%
Adjusted ROA	3.07%	0.91%	3.21%	2.87%	2.69%

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 total 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 financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	CVS Health Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	CVS Health Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	7,668)	2,074)	7,482)	6,615)	5,985)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Profitability Ratio
Adjusted net profit margin²	2.15%	0.64%	2.57%	2.47%	2.34%

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 × 7,668 ÷ 356,623 = 2.15%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues from customers	356,623)	321,629)	290,912)	267,908)	255,765)
Adjusted total assets	249,728)	228,144)	232,999)	230,715)	222,449)
Activity Ratio
Adjusted total asset turnover²	1.43	1.41	1.25	1.16	1.15

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 ÷ 249,728 = 1.43

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	249,728)	228,144)	232,999)	230,715)	222,449)
Adjusted total CVS Health shareholders’ equity	80,772)	74,764)	81,345)	76,183)	71,158)
Solvency Ratio
Adjusted financial leverage²	3.09	3.05	2.86	3.03	3.13

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
= 249,728 ÷ 80,772 = 3.09

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	CVS Health Corp. adjusted financial leverage ratio increased 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	7,668)	2,074)	7,482)	6,615)	5,985)
Adjusted total CVS Health shareholders’ equity	80,772)	74,764)	81,345)	76,183)	71,158)
Profitability Ratio
Adjusted ROE²	9.49%	2.77%	9.20%	8.68%	8.41%

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 × 7,668 ÷ 80,772 = 9.49%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	CVS Health Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to CVS Health	7,668)	2,074)	7,482)	6,615)	5,985)
Adjusted total assets	249,728)	228,144)	232,999)	230,715)	222,449)
Profitability Ratio
Adjusted ROA²	3.07%	0.91%	3.21%	2.87%	2.69%

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 × 7,668 ÷ 249,728 = 3.07%

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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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (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)