Operating Profit Margin
since 2005
Calculation
CVS Health Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues from customers1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 2.30% | = | 100 | × | 8,516) | ÷ | 370,656) |
| Dec 31, 2023 | 3.85% | = | 100 | × | 13,743) | ÷ | 356,623) |
| Dec 31, 2022 | 2.41% | = | 100 | × | 7,746) | ÷ | 321,629) |
| Dec 31, 2021 | 4.54% | = | 100 | × | 13,193) | ÷ | 290,912) |
| Dec 31, 2020 | 5.19% | = | 100 | × | 13,911) | ÷ | 267,908) |
| Dec 31, 2019 | 4.69% | = | 100 | × | 11,987) | ÷ | 255,765) |
| Dec 31, 2018 | 2.07% | = | 100 | × | 4,021) | ÷ | 193,919) |
| Dec 31, 2017 | 5.15% | = | 100 | × | 9,517) | ÷ | 184,765) |
| Dec 31, 2016 | 5.84% | = | 100 | × | 10,366) | ÷ | 177,526) |
| Dec 31, 2015 | 6.18% | = | 100 | × | 9,475) | ÷ | 153,290) |
| Dec 31, 2014 | 6.31% | = | 100 | × | 8,799) | ÷ | 139,367) |
| Dec 31, 2013 | 6.34% | = | 100 | × | 8,037) | ÷ | 126,761) |
| Dec 31, 2012 | 5.87% | = | 100 | × | 7,228) | ÷ | 123,133) |
| Dec 31, 2011 | 5.91% | = | 100 | × | 6,330) | ÷ | 107,100) |
| Dec 31, 2010 | 6.39% | = | 100 | × | 6,165) | ÷ | 96,413) |
| Dec 31, 2009 | 6.52% | = | 100 | × | 6,438) | ÷ | 98,729) |
| Dec 31, 2008 | 6.91% | = | 100 | × | 6,046) | ÷ | 87,472) |
| Dec 29, 2007 | 6.28% | = | 100 | × | 4,793) | ÷ | 76,330) |
| Dec 30, 2006 | 5.57% | = | 100 | × | 2,442) | ÷ | 43,814) |
| Dec 31, 2005 | 5.46% | = | 100 | × | 2,020) | ÷ | 37,006) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
1 US$ in millions
An analysis of the financial performance from 2005 to 2024 reveals a significant divergence between top-line revenue growth and operating profit margin stability. While revenues experienced an aggressive upward trajectory, the operating profit margin exhibited periods of stability followed by increased volatility and a general downward trend in the latter half of the period.
- Revenue and Operating Income Expansion
- Revenues from customers grew substantially over the nineteen-year period, increasing from 37,006 million USD in 2005 to 370,656 million USD by 2024. Operating income followed a general upward trend for over a decade, rising from 2,020 million USD in 2005 to a peak of 13,911 million USD in 2020. However, the growth in operating income became inconsistent after 2020, characterized by sharp contractions and partial recoveries.
- Operating Profit Margin Phases
- The operating profit margin can be categorized into three distinct phases. The first phase (2005–2009) was marked by a gradual increase, peaking at 6.91% in 2008. The second phase (2010–2017) showed relative stability, with margins fluctuating narrowly between 5.15% and 6.39%. The third phase (2018–2024) introduced significant volatility, with the margin falling below 3% on multiple occasions.
- Analysis of Margin Volatility and Contraction
- A notable contraction occurred in 2018, where the operating profit margin dropped to 2.07%, the lowest point until the final year of the analysis. Although a recovery occurred between 2019 and 2021, with margins returning to the 4.54% to 5.19% range, the trend turned negative again in 2022. The margin declined to 2.41% in 2022, recovered to 3.85% in 2023, and ultimately fell to 2.30% in 2024.
- Correlation Between Scale and Efficiency
- The data indicates that massive increases in revenue scale did not translate into expanded operating efficiency. Despite the revenue base increasing nearly tenfold, the operating profit margin in 2024 (2.30%) was significantly lower than it was in 2005 (5.46%), suggesting that operating expenses grew at a faster rate than revenues during the most recent periods of expansion.
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Comparison to Competitors
CVS Health Corp., operating profit margin, long-term trends, comparison to competitors
| CVS Health Corp. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 2.30% | 16.27% | 28.12% | 15.89% | 8.17% |
| Dec 31, 2023 | 3.85% | 16.15% | 24.80% | 17.56% | 8.80% |
| Dec 31, 2022 | 2.41% | 19.16% | 25.35% | 18.15% | 8.83% |
| Dec 31, 2021 | 4.54% | 19.56% | 31.89% | 14.89% | 8.40% |
| Dec 31, 2020 | 5.19% | 15.48% | 24.09% | 16.57% | 8.76% |
| Dec 31, 2019 | 4.69% | 14.21% | 30.69% | 20.51% | 8.19% |
| Dec 31, 2018 | 2.07% | 11.94% | 32.21% | 22.20% | 7.71% |
| Dec 31, 2017 | 5.15% | 6.30% | 33.71% | 17.94% | 7.60% |
| Dec 31, 2016 | 5.84% | 15.27% | 34.95% | 18.35% | 7.03% |
| Dec 31, 2015 | 6.18% | 14.05% | 31.04% | 18.59% | 7.05% |
| Dec 31, 2014 | 6.31% | 12.84% | 25.56% | 22.42% | 7.92% |
| Dec 31, 2013 | 6.34% | 12.03% | 37.64% | 26.53% | 7.90% |
| Dec 31, 2012 | 5.87% | 20.28% | 40.30% | 0.00% | 8.42% |
| Dec 31, 2011 | 5.91% | 14.81% | 39.54% | 0.00% | 8.36% |
| Dec 31, 2010 | 6.39% | 17.31% | 39.29% | 0.00% | 8.41% |
| Dec 31, 2009 | 6.52% | 20.27% | 35.87% | 0.00% | 7.35% |
| Dec 31, 2008 | 6.91% | 19.28% | 35.53% | 0.00% | 6.54% |
| Dec 29, 2007 | 6.28% | 17.67% | 34.41% | 0.00% | 10.57% |
| Dec 30, 2006 | 5.57% | 9.09% | 28.81% | 0.00% | 9.88% |
| Dec 31, 2005 | 5.46% | 19.53% | 30.25% | 0.00% | 11.98% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).