CVS Health Corp. (NYSE:CVS)

The analysis of the company's asset composition over the five-year period reveals several notable trends and shifts in the allocation of resources.

Cash and Cash Equivalents

This category experienced an increase from 3.4% in 2020 to a peak of 5.67% in 2022, followed by a decline to 3.28% in 2023 and a slight recovery to 3.39% in 2024. The initial rise indicates improved liquidity, whereas the subsequent reduction suggests a strategic deployment of cash resources after 2022.

Investments

The proportion of investments relative to total assets remained relatively stable around 1.3% to 1.34% in the earlier years, before decreasing to 1.22% in 2022 and slightly fluctuating to 1.31% in 2023 and then declining to 0.95% in 2024. This downward trend in recent years points to a diminished emphasis on investments within the asset structure.

Accounts Receivable, Net

A steady increase is observed from 9.42% in 2020 to 14.4% in 2024, indicating a growing amount of credit extended to customers or possibly longer collection periods, which may have implications for working capital management and liquidity.

Inventories

Inventory levels showed modest fluctuation, starting at 8.02% in 2020, decreasing to 7.62% in 2021, rising slightly to 8.36% in 2022, and then gradually declining to 7.15% in 2024. This points to relatively stable inventory management with minor adjustments over the years.

Assets Held for Sale

This item appears only in 2022 at 0.4% of total assets, suggesting a one-time decision to classify certain assets for disposal during that year, which was not a recurring element in other years.

Other Current Assets

There was a decline from 2.29% in 2020 to about 1.18% in 2022, followed by little change through to 2024. This indicates a reduction in miscellaneous current assets over the period.

Current Assets

Current assets as a proportion of total assets increased steadily from 24.43% in 2020 to 28.77% in 2022, before slightly declining to approximately 27.1% in 2024. This trend is largely driven by the increase in accounts receivable.

Long-Term Investments

These increased from 9.02% in 2020 to 11.43% in 2024, reflecting a growing commitment to long-term investment assets, possibly indicating a strategic focus on future growth or capital appreciation.

Property and Equipment, Net

A slight decline is noted from 5.46% in 2020 to 5.13% in 2024, suggesting either depreciation outpacing new investments or asset disposals reducing the book value of property and equipment.

Operating Lease Right-of-Use Assets

This category decreased consistently from 8.98% in 2020 to 6.3% in 2024, indicating a reduction in leased assets or a change in lease strategy.

Goodwill

Goodwill remained the largest asset component, fluctuating slightly but increasing overall from 34.48% in 2020 to a peak of 36.55% in 2023 and a slight decrease to 36.05% in 2024. This reflects sustained significant intangible asset values from acquisitions or business combinations.

Intangible Assets, Net

These assets showed a continuous decline from 13.5% in 2020 to 10.79% in 2024, indicating amortization outpacing additions or potential impairments affecting the asset base.

Separate Accounts Assets

There was a decrease from 2.12% in 2020 to around 1.3% by 2024, showing a reduction in this asset category over time.

Other Assets

This category remained relatively stable near 2%, with a slight decrease to about 1.87% in 2023, then a minor recovery in 2024, indicating consistent composition of miscellaneous long-term assets.

Long-Term Assets

Long-term assets declined from 75.57% in 2020 to 71.23% in 2022, before a slight increase to around 72.9% in 2024. This indicates a modest shift toward current asset composition before partially reversing.