Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

CVS Health Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Products	231,521)	245,138)	226,616)	203,738)	190,688)
Premiums	122,896)	99,192)	85,330)	76,132)	69,364)
Services	16,239)	12,293)	9,683)	11,042)	7,856)
Revenues from customers	370,656)	356,623)	321,629)	290,912)	267,908)
Cost of products sold	(206,287)	(217,098)	(196,892)	(175,803)	(163,981)
Health care costs	(115,121)	(86,247)	(71,281)	(64,260)	(55,679)
Cost of revenues	(321,408)	(303,345)	(268,173)	(240,063)	(219,660)
Gross profit	49,248)	53,278)	53,456)	50,849)	48,248)
Net investment income	2,153)	1,153)	838)	1,199)	798)
Operating expenses	(41,606)	(39,832)	(38,212)	(37,066)	(35,135)
Restructuring charges	(1,179)	(507)	—)	—)	—)
Opioid litigation charges	(100)	—)	(5,803)	—)	—)
Loss on assets held for sale	—)	(349)	(2,533)	—)	—)
Store impairments	—)	—)	—)	(1,358)	—)
Goodwill impairment	—)	—)	—)	(431)	—)
Operating income	8,516)	13,743)	7,746)	13,193)	13,911)
Interest expense	(2,958)	(2,658)	(2,287)	(2,503)	(2,907)
Gain (loss) on early extinguishment of debt	491)	—)	—)	(452)	(1,440)
Other income	99)	88)	169)	182)	206)
Income before income tax provision	6,148)	11,173)	5,628)	10,420)	9,770)
Income tax provision	(1,562)	(2,805)	(1,463)	(2,522)	(2,569)
Income from continuing operations	4,586)	8,368)	4,165)	7,898)	7,201)
Loss from discontinued operations, net of tax	—)	—)	—)	—)	(9)
Net income	4,586)	8,368)	4,165)	7,898)	7,192)
Net (income) loss attributable to noncontrolling interests	28)	(24)	(16)	12)	(13)
Net income attributable to CVS Health	4,614)	8,344)	4,149)	7,910)	7,179)

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).

Total revenues from customers demonstrate a consistent upward trajectory, increasing from US$ 267,908 million in 2020 to US$ 370,656 million in 2024. This growth is primarily characterized by a substantial expansion in premiums, which rose from US$ 69,364 million to US$ 122,896 million over the period. While product revenues remained the largest contributor, they peaked in 2023 at US$ 245,138 million before declining to US$ 231,521 million in 2024.

Gross Profitability and Margin Pressure: Despite the significant growth in top-line revenue, gross profit has remained largely stagnant, moving from US$ 48,248 million in 2020 to US$ 49,248 million in 2024. This indicates a compression in gross margins, driven largely by the escalation of health care costs, which increased from US$ 55,679 million in 2020 to US$ 115,121 million in 2024. The cost of products sold also rose significantly, though it saw a moderate reduction in 2024 compared to the previous year.
Operating Income Volatility and Non-Recurring Items: Operating income exhibits significant instability, with a peak of US$ 13,911 million in 2020 and a notable decline to US$ 8,516 million by 2024. This volatility is linked to various one-time charges. In 2022, operating income was heavily impacted by US$ 5,803 million in opioid litigation charges and US$ 2,533 million in losses on assets held for sale. More recently, restructuring charges have trended upward, increasing from US$ 507 million in 2023 to US$ 1,179 million in 2024, further weighing on operating performance.
Net Income and Bottom-Line Trends: Net income attributable to the company shows a general downward trend from its 2021 high of US$ 7,910 million to US$ 4,614 million in 2024. While net investment income improved significantly in 2024, reaching US$ 2,153 million, this was insufficient to offset the combination of higher operating expenses and recurring non-operational losses. Interest expenses have remained relatively consistent, fluctuating between US$ 2,287 million and US$ 2,958 million over the five-year window.

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CVS Health Corp. (NYSE:CVS)

Income Statement