Return on Equity (ROE)
since 2005
Calculation
CVS Health Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to CVS Health1 | ÷ | Total CVS Health shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.11% | = | 100 | × | 4,614) | ÷ | 75,560) |
| Dec 31, 2023 | 10.91% | = | 100 | × | 8,344) | ÷ | 76,461) |
| Dec 31, 2022 | 5.84% | = | 100 | × | 4,149) | ÷ | 71,015) |
| Dec 31, 2021 | 10.54% | = | 100 | × | 7,910) | ÷ | 75,075) |
| Dec 31, 2020 | 10.35% | = | 100 | × | 7,179) | ÷ | 69,389) |
| Dec 31, 2019 | 10.39% | = | 100 | × | 6,634) | ÷ | 63,864) |
| Dec 31, 2018 | -1.02% | = | 100 | × | (594) | ÷ | 58,225) |
| Dec 31, 2017 | 17.57% | = | 100 | × | 6,622) | ÷ | 37,691) |
| Dec 31, 2016 | 14.44% | = | 100 | × | 5,317) | ÷ | 36,830) |
| Dec 31, 2015 | 14.08% | = | 100 | × | 5,237) | ÷ | 37,196) |
| Dec 31, 2014 | 12.23% | = | 100 | × | 4,644) | ÷ | 37,958) |
| Dec 31, 2013 | 12.10% | = | 100 | × | 4,592) | ÷ | 37,938) |
| Dec 31, 2012 | 10.28% | = | 100 | × | 3,877) | ÷ | 37,704) |
| Dec 31, 2011 | 9.10% | = | 100 | × | 3,461) | ÷ | 38,051) |
| Dec 31, 2010 | 9.09% | = | 100 | × | 3,427) | ÷ | 37,700) |
| Dec 31, 2009 | 10.33% | = | 100 | × | 3,696) | ÷ | 35,768) |
| Dec 31, 2008 | 9.29% | = | 100 | × | 3,212) | ÷ | 34,574) |
| Dec 29, 2007 | 8.42% | = | 100 | × | 2,637) | ÷ | 31,322) |
| Dec 30, 2006 | 13.80% | = | 100 | × | 1,369) | ÷ | 9,918) |
| Dec 31, 2005 | 14.70% | = | 100 | × | 1,225) | ÷ | 8,331) |
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
The Return on Equity (ROE) for the period between 2005 and 2024 exhibits significant volatility, characterized by distinct phases of expansion, sharp contractions, and subsequent stabilization. The overall trend reflects an interplay between fluctuating net income and a substantial long-term increase in total shareholders' equity.
- Early Phase and Equity Expansion (2005–2012)
- Initial ROE levels were relatively high, starting at 14.70% in 2005. However, a sharp decline to 8.42% occurred in 2007, coinciding with a tripling of shareholders' equity from approximately 9.9 billion USD in 2006 to 31.3 billion USD in 2007. Despite consistent growth in net income during this period, the rapid expansion of the equity base exerted downward pressure on the ROE, which remained largely stagnant between 9% and 10% until 2012.
- Efficiency Peak (2013–2017)
- A period of sustained improvement in capital efficiency is observed from 2013 to 2017. During these years, net income grew from 4.59 billion USD to 6.62 billion USD while shareholders' equity remained relatively stable around 37 billion USD. This alignment resulted in a steady ascent of ROE, peaking at 17.57% in 2017, the highest level recorded in the analyzed timeframe.
- Anomaly and Recovery (2018–2021)
- The year 2018 represents a significant outlier, with ROE falling to -1.02% due to a net loss of 594 million USD. This collapse occurred simultaneously with a sharp increase in shareholders' equity to 58.2 billion USD. A recovery followed in 2019, with ROE returning to 10.39%. From 2019 through 2021, the ROE remained remarkably stable, fluctuating narrowly between 10.35% and 10.54%, as net income continued to climb toward 7.9 billion USD.
- Recent Volatility and Compression (2022–2024)
- Recent data indicates renewed instability in equity returns. In 2022, ROE dropped to 5.84% following a decline in net income to 4.15 billion USD. While 2023 saw a recovery to 10.91% driven by a peak net income of 8.34 billion USD, the metric retreated again to 6.11% in 2024. This recent volatility suggests a decreasing ability to maintain consistent returns on a now much larger equity base, which has grown to over 75 billion USD.
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Comparison to Competitors
CVS Health Corp., ROE, long-term trends, comparison to competitors
| CVS Health Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.11% | 28.12% | 14.47% | 14.13% | 7.32% | 15.55% |
| Dec 31, 2023 | 10.91% | 14.83% | 15.23% | 13.51% | 7.30% | 25.22% |
| Dec 31, 2022 | 5.84% | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 10.54% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 10.35% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 10.39% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | -1.02% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 17.57% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 14.44% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 14.08% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 12.23% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 12.10% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 10.28% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 9.10% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 9.09% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 10.33% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 9.29% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 29, 2007 | 8.42% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 30, 2006 | 13.80% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 14.70% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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).
Comparison to Sector (Health Care Equipment & Services)
CVS Health Corp., ROE, long-term trends, comparison to sector (health care equipment & services)
| CVS Health Corp. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2024 | 6.11% | 16.02% |
| Dec 31, 2023 | 10.91% | 17.13% |
| Dec 31, 2022 | 5.84% | 18.40% |
| Dec 31, 2021 | 10.54% | 17.28% |
| Dec 31, 2020 | 10.35% | 15.80% |
| Dec 31, 2019 | 10.39% | 15.85% |
| Dec 31, 2018 | -1.02% | 13.28% |
| Dec 31, 2017 | 17.57% | 12.21% |
| Dec 31, 2016 | 14.44% | 10.70% |
| Dec 31, 2015 | 14.08% | 11.84% |
| Dec 31, 2014 | 12.23% | 13.81% |
| Dec 31, 2013 | 12.10% | 14.22% |
| Dec 31, 2012 | 10.28% | 17.99% |
| Dec 31, 2011 | 9.10% | 17.02% |
| Dec 31, 2010 | 9.09% | 17.62% |
| Dec 31, 2009 | 10.33% | 19.50% |
| Dec 31, 2008 | 9.29% | 17.63% |
| Dec 29, 2007 | 8.42% | 20.02% |
| Dec 30, 2006 | 13.80% | 16.70% |
| Dec 31, 2005 | 14.70% | 16.22% |
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).
Comparison to Industry (Health Care)
CVS Health Corp., ROE, long-term trends, comparison to industry (health care)
| CVS Health Corp. | Health Care | |
|---|---|---|
| Dec 31, 2024 | 6.11% | 15.74% |
| Dec 31, 2023 | 10.91% | 19.40% |
| Dec 31, 2022 | 5.84% | 24.82% |
| Dec 31, 2021 | 10.54% | 25.44% |
| Dec 31, 2020 | 10.35% | 16.70% |
| Dec 31, 2019 | 10.39% | 23.30% |
| Dec 31, 2018 | -1.02% | 21.27% |
| Dec 31, 2017 | 17.57% | 13.77% |
| Dec 31, 2016 | 14.44% | 18.53% |
| Dec 31, 2015 | 14.08% | 18.52% |
| Dec 31, 2014 | 12.23% | 19.17% |
| Dec 31, 2013 | 12.10% | 18.81% |
| Dec 31, 2012 | 10.28% | 18.20% |
| Dec 31, 2011 | 9.10% | 15.90% |
| Dec 31, 2010 | 9.09% | 14.85% |
| Dec 31, 2009 | 10.33% | 20.14% |
| Dec 31, 2008 | 9.29% | 20.29% |
| Dec 29, 2007 | 8.42% | 17.87% |
| Dec 30, 2006 | 13.80% | 20.49% |
| Dec 31, 2005 | 14.70% | 18.28% |
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).