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).

Revenue Trends: Revenues from customers have demonstrated a consistent upward trend over the five-year period, increasing from $267.9 billion in 2020 to $370.7 billion in 2024, reflecting significant growth in both product sales and premiums. Product revenues peaked in 2023 at $245.1 billion before slightly declining to $231.5 billion in 2024. Premium revenues, on the other hand, showed steady and substantial growth, reaching $122.9 billion in 2024, which is the highest among all segments. Services revenues also increased over time, with notable growth from $7.9 billion in 2020 to $16.2 billion in 2024.
Cost and Profitability Analysis: The cost of revenues rose steadily, increasing from $219.7 billion in 2020 to $321.4 billion in 2024. This increase was largely driven by higher costs in products sold and health care costs, with the latter more than doubling from $55.7 billion in 2020 to $115.1 billion in 2024. Despite the revenue growth, gross profit showed a declining trend in the latter part of the period, peaking at $53.5 billion in 2022 and subsequently falling to $49.2 billion in 2024. This suggests pressure on profitability margins due to increasing expenses.
Operating Expenses and Charges: Operating expenses showed a gradual increase over the years, rising from $35.1 billion in 2020 to $41.6 billion in 2024. Non-recurring charges such as restructuring, opioid litigation, loss on assets held for sale, and impairments introduced volatility in operating income. The opioid litigation charge was particularly significant in 2022 at $5.8 billion. Restructuring charges increased to $1.2 billion in 2024 after not being present in earlier years. Store impairments and goodwill impairments were recorded only in 2021. These charges contributed to fluctuations in operating income.
Operating Income and Net Income Dynamics: Operating income showed volatility, starting at $13.9 billion in 2020, dipping to $7.7 billion in 2022 primarily due to extraordinary charges, recovering to $13.7 billion in 2023, and then declining again to $8.5 billion in 2024. Net income followed a similar pattern with a high of $7.9 billion in 2021, a low of $4.1 billion in 2022, recovery to $8.4 billion in 2023, and a decline to $4.6 billion in 2024. Income from continuing operations echoed these trends, indicating that earnings volatility stemmed largely from ongoing business activities rather than discontinued operations.
Financial Expenses and Other Income: Interest expense decreased modestly over the period, from $2.9 billion in 2020 to $2.3 billion in 2022, before rising again to $3.0 billion in 2024. Gains and losses on debt extinguishment impacted income notably in 2020, 2021, and 2024, with a positive gain of $0.5 billion in 2024. Other income remained stable but relatively minor throughout the timeframe.
Tax and Noncontrolling Interests: The income tax provision fluctuated annually, generally mirroring pre-tax income trends, with a decrease in tax provision in 2022 and 2024 corresponding to lower income before tax. Noncontrolling interests had minimal impact on net income, showing small positive or negative adjustments in various years.
Overall Insights: The data reflects a company experiencing strong top-line growth, particularly in premiums and services, but facing growing cost pressures, especially from health care costs and various one-time charges. Profitability metrics indicate earnings volatility influenced by litigation and restructuring charges, as well as impairments. While operating efficiency seems under pressure, the underlying business remains robust with increasing revenues. Attention to managing costs and mitigating non-recurring charges will be critical to sustaining profitability going forward.

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CVS Health Corp. (NYSE:CVS)

Income Statement