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
- Net Income Trends
- The net income of the company generally exhibited a positive growth trajectory between 2005 and 2017, rising from $1,225 million in 2005 to a peak of $6,622 million in 2017. A notable exception occurs in 2018, where the net income sharply dropped to a loss of $594 million. This loss appears to be an anomaly, as the net income rebounded strongly in subsequent years, reaching $8,344 million by 2023 before falling again to $4,614 million in 2024.
- Shareholders’ Equity Evolution
- Total shareholders’ equity shows a steady increase from $8,331 million in 2005 to $37,691 million in 2017, followed by a marked jump to $58,225 million in 2018. Equity continued to grow thereafter, reaching a high of $76,461 million in 2023, with a slight decrease to $75,560 million in 2024. This growth suggests consistent capital accumulation and reinvestment over the period, with significant expansions occurring post-2017.
- Return on Equity (ROE) Dynamics
- ROE percentages fluctuated moderately over the years with generally positive returns indicating operational efficiency. From 14.7% in 2005, ROE declined to lower single digits by 2007 and hovered around 9% to 14% in most years until 2017. There is a sharp decline to -1.02% in 2018, coinciding with the net income loss that year. ROE recovered to a range between 10.35% and 10.91% from 2019 to 2023. However, it decreased to 6.11% in 2024, reflecting a reduction in profitability relative to equity.
- Overall Observations
- The data demonstrates a general pattern of growth for both net income and shareholders’ equity over the evaluated periods, despite some volatility. The significant net income loss in 2018 and corresponding negative ROE highlight an unusual year of financial stress or major adjustments. Subsequent recovery indicates resilience and a strong rebound in financial performance. The decline in 2024's net income and ROE may warrant further investigation to determine underlying causes.
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% | 13.71% |
| Dec 31, 2023 | 10.91% | 15.59% |
| Dec 31, 2022 | 5.84% | 15.27% |
| Dec 31, 2021 | 10.54% | 15.49% |
| Dec 31, 2020 | 10.35% | 14.35% |
| Dec 31, 2019 | 10.39% | 14.41% |
| Dec 31, 2018 | -1.02% | 9.60% |
| Dec 31, 2017 | 17.57% | 13.23% |
| Dec 31, 2016 | 14.44% | 11.47% |
| Dec 31, 2015 | 14.08% | 12.32% |
| Dec 31, 2014 | 12.23% | 13.38% |
| Dec 31, 2013 | 12.10% | 13.66% |
| Dec 31, 2012 | 10.28% | 15.91% |
| Dec 31, 2011 | 9.10% | 14.75% |
| Dec 31, 2010 | 9.09% | 15.08% |
| Dec 31, 2009 | 10.33% | 16.80% |
| Dec 31, 2008 | 9.29% | 14.94% |
| Dec 29, 2007 | 8.42% | 16.53% |
| Dec 30, 2006 | 13.80% | 16.33% |
| Dec 31, 2005 | 14.70% | 16.05% |
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% | 14.75% |
| Dec 31, 2023 | 10.91% | 18.50% |
| Dec 31, 2022 | 5.84% | 22.94% |
| Dec 31, 2021 | 10.54% | 23.78% |
| Dec 31, 2020 | 10.35% | 15.95% |
| Dec 31, 2019 | 10.39% | 21.79% |
| Dec 31, 2018 | -1.02% | 18.65% |
| Dec 31, 2017 | 17.57% | 14.05% |
| Dec 31, 2016 | 14.44% | 18.22% |
| Dec 31, 2015 | 14.08% | 18.18% |
| Dec 31, 2014 | 12.23% | 18.58% |
| Dec 31, 2013 | 12.10% | 18.25% |
| Dec 31, 2012 | 10.28% | 17.51% |
| Dec 31, 2011 | 9.10% | 15.27% |
| Dec 31, 2010 | 9.09% | 14.32% |
| Dec 31, 2009 | 10.33% | 19.27% |
| Dec 31, 2008 | 9.29% | 19.00% |
| Dec 29, 2007 | 8.42% | 16.88% |
| Dec 30, 2006 | 13.80% | 20.24% |
| Dec 31, 2005 | 14.70% | 18.16% |
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).