CVS Health Corp. (NYSE:CVS)

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CVS Health Corp., adjusted total assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Total assets	253,215)	249,728)	228,275)	232,999)	230,715)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Add: Allowance for credit losses	407)	343)	333)	339)	358)
Less: Deferred income tax assets²	—)	—)	131)	—)	—)
After Adjustment
Adjusted total assets	253,622)	250,071)	228,477)	233,338)	231,073)

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).

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

² Deferred income tax assets. See details »

An analysis of the asset trajectory from 2020 to 2024 reveals a period of relative stability followed by a phase of significant expansion. Total assets experienced marginal growth through 2021, a slight contraction in 2022, and a substantial increase beginning in 2023, culminating in a peak value of 253,215 million US dollars by the end of 2024.

Asset Growth Patterns: A non-linear growth trajectory is observed. After a modest increase in 2021, total assets declined in 2022. This was followed by a sharp acceleration in 2023, where total assets grew by approximately 9.3%, indicating a significant expansion of the balance sheet. This upward momentum persisted into 2024, with assets increasing by an additional 1.4%.
Analysis of Adjustments: Adjusted total assets consistently exceed total assets across the entire five-year period. The variance between these two figures is minimal, ranging from a low of 202 million US dollars in 2022 to a high of 407 million US dollars in 2024. These adjustments represent a small fraction of the overall asset base, suggesting that the modifications applied are stable and do not fundamentally alter the primary financial trend.
Correlation and Trend Consistency: A near-perfect positive correlation exists between total assets and adjusted total assets. Both metrics mirror each other's fluctuations precisely, confirming that the adjustments are likely based on a consistent accounting treatment or a standardized modification that moves in tandem with the overall scale of the organization's assets.

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CVS Health Corp., adjusted total liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Total liabilities	177,485)	173,092)	156,960)	157,618)	161,014)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Less: Deferred income tax liabilities²	3,806)	4,311)	3,880)	6,270)	6,794)
After Adjustment
Adjusted total liabilities	173,679)	168,781)	153,080)	151,348)	154,220)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Deferred income tax liabilities. See details »

An analysis of the liability structure reveals a period of relative stability and slight contraction from 2020 through 2022, followed by a marked increase in obligations during 2023 and 2024. Both the reported total liabilities and the adjusted figures exhibit a synchronized upward trend in the latter part of the period.

Total Liabilities Trajectory: Total liabilities decreased from 161,014 million US dollars in 2020 to a low of 156,960 million US dollars in 2022. This trend reversed sharply in 2023, with liabilities rising to 173,092 million US dollars, and continuing to climb to 177,485 million US dollars by December 31, 2024.
Adjusted Total Liabilities Trajectory: Adjusted total liabilities followed a similar movement, declining from 154,220 million US dollars in 2020 to 151,348 million US dollars in 2021. A consistent growth phase began thereafter, with the figure reaching 173,679 million US dollars by the end of 2024.
Analysis of Adjustments: The variance between total liabilities and adjusted total liabilities indicates a narrowing adjustment gap over the five-year observation period. The difference was most pronounced in 2020 at 6,794 million US dollars and contracted to 3,806 million US dollars by 2024. This suggests a reduction in the proportional impact of the adjustments relative to the total liability balance.

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CVS Health Corp., adjusted total CVS Health shareholders’ equity

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Total CVS Health shareholders’ equity	75,560)	76,461)	71,015)	75,075)	69,389)
Adjustments
Less: Net deferred income tax assets (liabilities)¹	(3,806)	(4,311)	(3,749)	(6,270)	(6,794)
Add: Allowance for credit losses	407)	343)	333)	339)	358)
Add: Noncontrolling interests	170)	175)	300)	306)	312)
After Adjustment
Adjusted total shareholders’ equity	79,943)	81,290)	75,397)	81,990)	76,853)

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).

¹ Net deferred income tax assets (liabilities). See details »

The financial position regarding stockholders' equity between 2020 and 2024 reflects a period of volatility characterized by cyclical increases and subsequent corrections. While both reported and adjusted equity figures show an overall upward trajectory from the 2020 baseline, growth has not been linear, with notable contractions occurring in 2022 and 2024.

Total Shareholders' Equity Trends: Total shareholders' equity increased from 69,389 million USD in 2020 to a peak of 76,461 million USD in 2023. A moderate decline was observed in 2022, where equity dropped to 71,015 million USD, followed by a recovery in 2023 and a slight contraction to 75,560 million USD by the end of 2024.
Adjusted Total Shareholders' Equity Performance: Adjusted equity followed a similar pattern, starting at 76,853 million USD in 2020 and reaching its zenith in 2021 at 81,990 million USD. The figure experienced a significant dip in 2022 to 75,397 million USD before recovering to 81,290 million USD in 2023 and settling at 79,943 million USD in 2024.
Analysis of Equity Adjustments: A consistent positive variance exists between the reported total equity and the adjusted total equity throughout the analyzed period. The magnitude of this adjustment was most pronounced in 2020 and 2021, exceeding 6,900 million USD. However, a compression of this gap occurred in 2022, with the adjustment narrowing to 4,382 million USD, a level that remained relatively constant through 2024.

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CVS Health Corp., adjusted capitalization table

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Short-term debt	2,119)	200)	—)	—)	—)
Current portion of long-term debt	3,624)	2,772)	1,778)	4,205)	5,440)
Long-term debt, excluding current portion	60,527)	58,638)	50,476)	51,971)	59,207)
Total reported debt	66,270)	61,610)	52,254)	56,176)	64,647)
Total CVS Health shareholders’ equity	75,560)	76,461)	71,015)	75,075)	69,389)
Total reported capital	141,830)	138,071)	123,269)	131,251)	134,036)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Add: Current portion of operating lease liabilities²	1,751)	1,741)	1,678)	1,646)	1,638)
Add: Long-term operating lease liabilities³	14,899)	16,034)	16,800)	18,177)	18,757)
Adjusted total debt	82,920)	79,385)	70,732)	75,999)	85,042)
Adjustments to Equity
Less: Net deferred income tax assets (liabilities)⁴	(3,806)	(4,311)	(3,749)	(6,270)	(6,794)
Add: Allowance for credit losses	407)	343)	333)	339)	358)
Add: Noncontrolling interests	170)	175)	300)	306)	312)
Adjusted total shareholders’ equity	79,943)	81,290)	75,397)	81,990)	76,853)
After Adjustment
Adjusted total capital	162,863)	160,675)	146,129)	157,989)	161,895)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Current portion of operating lease liabilities. See details »

³ Long-term operating lease liabilities. See details »

⁴ Net deferred income tax assets (liabilities). See details »

An analysis of the capitalization structure from 2020 to 2024 reveals a distinct U-shaped trajectory in total capital, characterized by a contraction through 2022 followed by a period of expansion. The capitalization reflects a consistent discrepancy between reported figures and adjusted figures, indicating the systematic inclusion of additional liabilities and equity adjustments to provide a more comprehensive view of the financial leverage.

Debt Obligations and Adjustments: Total reported debt exhibited a downward trend from 64,647 million US dollars in 2020 to a low of 52,254 million US dollars in 2022, before reversing to reach 66,270 million US dollars by 2024. Adjusted total debt followed an identical trend pattern but remained consistently higher than reported debt, with a gap ranging approximately between 18,000 and 20,000 million US dollars annually. This persistent variance suggests the capitalization of significant off-balance sheet obligations or lease liabilities across the entire five-year period.
Shareholders' Equity Trends: Total reported shareholders' equity remained relatively stable, fluctuating between a minimum of 69,389 million US dollars in 2020 and a peak of 76,461 million US dollars in 2023. Adjusted equity values were consistently higher than reported values, peaking at 81,990 million US dollars in 2021. The adjusted equity figures maintain a narrow but consistent premium over reported equity, indicating a steady adjustment for equity-like instruments or specific accounting reclassifications.
Total Capitalization Dynamics: Total reported capital decreased from 134,036 million US dollars in 2020 to 123,269 million US dollars in 2022, before increasing to 141,830 million US dollars by the end of 2024. Adjusted total capital mirrored this movement, falling to 146,129 million US dollars in 2022 and recovering to 162,863 million US dollars in 2024. The adjusted capital base is consistently larger than the reported base, reflecting the combined impact of both debt and equity adjustments.

The data indicates that the organization's leverage increased significantly after 2022, with the growth in total capital primarily driven by an increase in debt rather than equity. The consistency of the adjustments suggests a standardized methodology for calculating adjusted capital, ensuring that the relationship between reported and adjusted metrics remains proportional over time.

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CVS Health Corp., adjusted net income attributable to CVS Health

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Net income attributable to CVS Health	4,614)	8,344)	4,149)	7,910)	7,179)
Adjustments
Add: Deferred income tax expense (benefit)¹	(572)	(676)	(2,075)	(428)	(564)
Add: Increase (decrease) in allowance for credit losses	64)	10)	(6)	(19)	39)
Less: Loss from discontinued operations, net of tax	—)	—)	—)	—)	(9)
Add: Other comprehensive income (loss), net of tax	177)	967)	(2,430)	(449)	395)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest	(28)	24)	16)	(12)	13)
After Adjustment
Adjusted net income	4,255)	8,669)	(346)	7,002)	7,071)

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).

¹ Deferred income tax expense (benefit). See details »

A period of significant volatility is observed in both reported net income and adjusted net income from 2020 through 2024. The financial performance does not follow a linear trajectory, instead characterized by sharp fluctuations, a notable contraction in 2022, a peak in 2023, and a subsequent decline in 2024.

Reported Net Income Trends: Net income attributable to CVS Health experienced an initial increase between 2020 and 2021, rising from 7,179 million to 7,910 million. A substantial contraction occurred in 2022, where income fell to 4,149 million. This was followed by a sharp recovery in 2023, reaching a five-year peak of 8,344 million, before declining again in 2024 to 4,614 million.
Adjusted Net Income Volatility: Adjusted net income exhibits more extreme variance than reported net income. While it remained relatively stable between 2020 and 2021, it plummeted to a negative value of -346 million in 2022. The subsequent rebound in 2023 was the most aggressive move in the dataset, climbing to 8,669 million. By 2024, this figure decreased to 4,255 million.
Analysis of Divergence Between Reported and Adjusted Figures: The relationship between reported and adjusted income shifted markedly over the five-year period. In 2020 and 2021, reported net income was slightly higher than adjusted net income. The most significant divergence occurred in 2022, where reported net income remained positive at 4,149 million while adjusted net income turned negative, suggesting that non-recurring adjustments significantly impacted the underlying performance metric. In 2023, the trend inverted, with adjusted net income exceeding reported net income by 325 million. By 2024, reported net income again surpassed adjusted net income by 359 million.
Comparative Performance Summary: The synchronization of the peaks and troughs between the two metrics suggests that the primary drivers of profitability volatility are mirrored in both figures. However, the amplified swings in adjusted net income, particularly the shift to a net loss in 2022 despite positive reported earnings, indicate a high sensitivity to the specific adjustments applied to the reported income.

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