CVS Health Corp. (NYSE:CVS)

The analysis of the quarterly financial data reveals several notable trends in the composition of liabilities and shareholders’ equity over the observed periods.

Current Liabilities

Current liabilities as a percentage of total liabilities and shareholders’ equity generally increased from around 25.82% in March 2020 to a peak of 34.81% in March 2025. Key components such as accounts payable and pharmacy claims and discounts payable both showed upward trends, with pharmacy claims and discounts payable rising from 6.7% to over 10% by March 2025, indicating growing obligations in that area. Health care costs payable also increased, moving from 3.29% to approximately 5.91%, highlighting higher healthcare-related current obligations.

Accrued Expenses and Other Current Liabilities

This category remained relatively stable but experienced mild fluctuations, increasing from 7.23% in March 2020 to a peak around 9.69% in mid-2023, then slightly declining to 8.75% by March 2025. This suggests somewhat stable but slightly elevated operational liabilities over time.

Long-term Liabilities

The long-term liabilities portion decreased from 45.79% in March 2020 to 35.02% in March 2025, reflecting a general decline in long-term obligations relative to total capital. Notably, both long-term operating lease liabilities and long-term debt (excluding current portions) showed decreasing trends. Long-term operating lease liabilities fell steadily from over 8% to approximately 5.71%, while long-term debt showed some variation but ultimately declined from 28.5% to 23.1%. These trends signal possible reductions or repayments of long-term commitments or shifts in the financing structure.

Deferred Income Taxes and Other Long-term Liabilities

Deferred income taxes decreased notably from around 3.09% to below 1.5%, suggesting changes in tax obligations or deferred tax assets/liabilities management. Other long-term insurance liabilities and other long-term liabilities showed modest downward trends, decreasing their relative share within the capital structure, indicating reduced long-term contingent liabilities.

Shareholders' Equity

Total shareholders’ equity as a percentage of total liabilities and shareholders’ equity increased from approximately 28.39% in March 2020 to around 30.17% in March 2025. Retained earnings were a primary driver, increasing from 20.14% to near 24.95%, demonstrating accumulating profits and reinvestments within the company. Conversely, treasury stock at cost also increased in negative magnitude from about -12.22% to -14.37%, which may indicate increased share repurchases or retirements impacting equity.

Accumulated Other Comprehensive Income (Loss)

This metric fluctuated notably over the period, turning negative after 2021 and remaining close to zero or negative with some minor positive variation towards the end. The range oscillated between -0.7% and 0.3%, reflecting variability in gains or losses not realized through net income, such as foreign currency adjustments or pension-related remeasurements.

Overall Capital Structure

The proportion of total liabilities and shareholders’ equity remained constant at 100%, naturally. However, the shifting proportions indicate a gradual increase in current liabilities with a corresponding decline in long-term liabilities and a stable to slightly increasing shareholders’ equity percentage. This pattern suggests a strategic shift toward more short-term financing or higher operational liabilities coupled with a moderate strengthening of equity.

In summary, the company shows an increasing reliance on current liabilities, particularly in pharmacy claims and health care costs, while long-term debt and leases are being reduced as a percentage of the capital structure. Shareholders’ equity strengthens moderately driven by retained earnings despite a growing treasury stock impact. The data suggest ongoing adjustments in the company’s financing mix with a focus on managing both short-term and long-term obligations prudently.