Common-Size Income Statement
Paying user area
Try for free
CVS Health Corp. pages available for free this week:
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to CVS Health Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
CVS Health Corp., common-size consolidated income statement
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).
- Revenue Composition Trends
- Over the five-year period, the proportion of revenues derived from products has declined significantly, falling from 71.18% in 2020 to 62.46% in 2024. Conversely, premiums have increased substantially, rising from 25.89% to 33.16%, reflecting a strategic shift toward insurance-based revenue streams. Services have also grown moderately from 2.93% to 4.38%, suggesting an expanding emphasis on service offerings within the revenue mix.
- Cost Structure Analysis
- The cost of products sold as a percentage of revenues has decreased from -61.21% to -55.65%, indicating improved cost efficiency or changes in product pricing. However, health care costs have escalated markedly from -20.78% to -31.06%, exerting upward pressure on overall costs. Consequently, total cost of revenues has increased from -81.99% to -86.71%, reflecting heightened expenditure relative to revenue despite some cost containment in products sold.
- Profitability Evolution
- Gross profit margins have contracted steadily from 18.01% in 2020 to 13.29% in 2024, driven primarily by rising health care costs and overall cost of revenues. Operating expenses, excluding special charges, have shown a slight improvement, declining from -13.11% to -11.22%, indicating ongoing efforts to manage operating costs. Nonetheless, restructuring charges and litigation-related expenses appeared intermittently in 2023 and 2024, marginally impacting operating performance.
- Operating Income and Other Income Impacts
- Operating income as a percentage of revenues has been volatile, decreasing from 5.19% in 2020 to a low of 2.41% in 2022, rebounding to 3.85% in 2023 but falling back to 2.3% in 2024. Interest expense has trended downward modestly but remains a consistent cost burden. There have been occasional losses related to early extinguishment of debt, alongside nominal gains or losses in other income streams that have minimal effect on overall profitability.
- Income Before Tax and Net Income Trends
- Income before income tax provision shows a declining pattern from 3.65% in 2020 to 1.66% in 2024, with a temporary recovery in 2023. The income tax provision has decreased over time, reflecting lower profitability levels. Income from continuing operations parallels this trajectory, decreasing from 2.69% to 1.24%. Net income attributable to the company demonstrates a similar decline, maintaining around 2.7% in early years but nearly halving by 2024 to 1.24%, underscoring challenges in maintaining profitability amid rising costs and shifting revenue composition.
- Additional Observations
- Special charges related to opioid litigation, asset impairments, and restructuring materially affected financial results during certain years, especially in 2022 and 2023. These exceptional items contributed to periodic declines in operating income and net profitability. The net income attributable to noncontrolling interests remains negligible throughout the period, exerting minimal influence on overall earnings.