Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
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- 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
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CVS Health Corp., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
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).
The data indicates a progressive increase in the company's current liabilities over the analyzed periods, rising from $62,017 million in 2020 to $84,609 million in 2024. Major contributors to this rise include accounts payable, pharmacy claims and discounts payable, and health care costs payable, which all exhibit consistent growth year over year. Specifically, pharmacy claims and discounts payable show a marked increase from $15,795 million to $24,166 million, signaling higher operational obligations in that segment.
Accrued expenses and other current liabilities demonstrate some fluctuation, with an increase from 2020 to 2021, a slight decrease in 2022, followed by a rise in 2023 and a decline in 2024. This variability may reflect changes in expense recognition or other operational factors during these years.
Short-term debt appears only in the last two years, escalating sharply from $200 million in 2023 to $2,119 million in 2024, possibly indicating new financing activities or changes in debt management strategy.
Current portion of long-term debt decreases initially from $5,440 million in 2020 to $1,778 million in 2022, then rises again to $3,624 million in 2024. This pattern might suggest refinancing or restructuring of debt obligations.
Long-term liabilities show a general downward trend from $98,997 million in 2020 to $92,876 million in 2024, despite a rise in 2023. This decrease is influenced by declines in long-term operating lease liabilities and deferred income taxes. However, other long-term liabilities spike in 2022 before gradually decreasing again, suggesting episodic changes in long-term obligations.
Total liabilities exhibit a dip from 2020 to 2022, followed by a substantial increase in 2023 and continuing growth into 2024, reaching $177,485 million. This overall rise aligns with the growth in current liabilities and reflects increased obligations.
Shareholders’ equity rises from $69,701 million in 2020 to a peak of $76,636 million in 2023 before slightly declining to $75,730 million in 2024. Common stock and capital surplus steadily increase, while treasury stock grows negatively, indicating share repurchases. Retained earnings show consistent growth throughout the period, reflecting accumulated profits.
Accumulated other comprehensive income/loss moves from a positive $1,414 million in 2020 to a negative $120 million in 2024, including a notable drop into negative territory in 2022 and continued recovery thereafter. Noncontrolling interests slightly decrease over time.
Total assets, represented by total liabilities and shareholders’ equity, mirror the observed trends, with a mild increase from $230,715 million in 2020 to $253,215 million in 2024, highlighting overall growth in the company's financial size.
In summary, the company displays growth in liabilities, particularly current liabilities, offset partially by fluctuations and a slight reduction in long-term liabilities. Shareholders’ equity remains stable with moderate increases, backed by steady retained earnings and share capital movements. The changes suggest active financial management involving debt restructuring, operational expansion, and shareholder value maintenance over the examined years.