Stock Analysis on Net
Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

CVS Health Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 1.43 1.41 1.25 1.16 1.15
Adjusted 1.43 1.41 1.25 1.16 1.15
Liquidity Ratio
Current Ratio
Reported 0.86 0.94 0.88 0.91 0.94
Adjusted 0.86 0.95 0.89 0.91 0.95
Solvency Ratios
Debt to Equity
Reported 0.81 0.74 0.75 0.93 1.07
Adjusted 0.97 0.94 0.93 1.11 1.24
Debt to Capital
Reported 0.45 0.42 0.43 0.48 0.52
Adjusted 0.49 0.48 0.48 0.53 0.55
Financial Leverage
Reported 3.27 3.21 3.10 3.32 3.48
Adjusted 3.07 3.03 2.85 3.01 3.10
Profitability Ratios
Net Profit Margin
Reported 2.34% 1.29% 2.72% 2.68% 2.59%
Adjusted 2.47% -0.11% 2.41% 2.64% 2.71%
Return on Equity (ROE)
Reported 10.91% 5.84% 10.54% 10.35% 10.39%
Adjusted 10.83% -0.46% 8.54% 9.20% 9.66%
Return on Assets (ROA)
Reported 3.34% 1.82% 3.39% 3.11% 2.98%
Adjusted 3.53% -0.15% 3.00% 3.06% 3.11%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CVS Health Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. CVS Health Corp. adjusted current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. CVS Health Corp. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. CVS Health Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 CVS Health Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. CVS Health Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. CVS Health Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. CVS Health Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

CVS Health Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Revenues from customers 356,623 321,629 290,912 267,908 255,765
Total assets 249,728 228,275 232,999 230,715 222,449
Activity Ratio
Total asset turnover1 1.43 1.41 1.25 1.16 1.15
Adjusted
Selected Financial Data (US$ in millions)
Revenues from customers 356,623 321,629 290,912 267,908 255,765
Adjusted total assets2 250,071 228,477 233,338 231,073 222,768
Activity Ratio
Adjusted total asset turnover3 1.43 1.41 1.25 1.16 1.15

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenues from customers ÷ Total assets
= 356,623 ÷ 249,728 = 1.43

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Revenues from customers ÷ Adjusted total assets
= 356,623 ÷ 250,071 = 1.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. CVS Health Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 67,858 65,682 60,008 56,369 50,302
Current liabilities 79,189 69,736 67,807 62,017 53,303
Liquidity Ratio
Current ratio1 0.86 0.94 0.88 0.91 0.94
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 68,201 66,015 60,347 56,727 50,621
Current liabilities 79,189 69,736 67,807 62,017 53,303
Liquidity Ratio
Adjusted current ratio3 0.86 0.95 0.89 0.91 0.95

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 67,858 ÷ 79,189 = 0.86

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 68,201 ÷ 79,189 = 0.86

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. CVS Health Corp. adjusted current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 61,610 52,254 56,176 64,647 68,480
Total CVS Health shareholders’ equity 76,461 71,015 75,075 69,389 63,864
Solvency Ratio
Debt to equity1 0.81 0.74 0.75 0.93 1.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 79,385 70,732 75,999 85,042 89,002
Adjusted total shareholders’ equity3 81,440 75,397 81,990 76,853 71,783
Solvency Ratio
Adjusted debt to equity4 0.97 0.94 0.93 1.11 1.24

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= 61,610 ÷ 76,461 = 0.81

2 Adjusted total debt. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareholders’ equity
= 79,385 ÷ 81,440 = 0.97

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. CVS Health Corp. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 61,610 52,254 56,176 64,647 68,480
Total capital 138,071 123,269 131,251 134,036 132,344
Solvency Ratio
Debt to capital1 0.45 0.42 0.43 0.48 0.52
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 79,385 70,732 75,999 85,042 89,002
Adjusted total capital3 160,825 146,129 157,989 161,895 160,785
Solvency Ratio
Adjusted debt to capital4 0.49 0.48 0.48 0.53 0.55

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 61,610 ÷ 138,071 = 0.45

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 79,385 ÷ 160,825 = 0.49

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. CVS Health Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 249,728 228,275 232,999 230,715 222,449
Total CVS Health shareholders’ equity 76,461 71,015 75,075 69,389 63,864
Solvency Ratio
Financial leverage1 3.27 3.21 3.10 3.32 3.48
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 250,071 228,477 233,338 231,073 222,768
Adjusted total shareholders’ equity3 81,440 75,397 81,990 76,853 71,783
Solvency Ratio
Adjusted financial leverage4 3.07 3.03 2.85 3.01 3.10

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= 249,728 ÷ 76,461 = 3.27

2 Adjusted total assets. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareholders’ equity
= 250,071 ÷ 81,440 = 3.07

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 CVS Health Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 8,344 4,149 7,910 7,179 6,634
Revenues from customers 356,623 321,629 290,912 267,908 255,765
Profitability Ratio
Net profit margin1 2.34% 1.29% 2.72% 2.68% 2.59%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,819 (346) 7,002 7,071 6,931
Revenues from customers 356,623 321,629 290,912 267,908 255,765
Profitability Ratio
Adjusted net profit margin3 2.47% -0.11% 2.41% 2.64% 2.71%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to CVS Health ÷ Revenues from customers
= 100 × 8,344 ÷ 356,623 = 2.34%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues from customers
= 100 × 8,819 ÷ 356,623 = 2.47%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. CVS Health Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 8,344 4,149 7,910 7,179 6,634
Total CVS Health shareholders’ equity 76,461 71,015 75,075 69,389 63,864
Profitability Ratio
ROE1 10.91% 5.84% 10.54% 10.35% 10.39%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,819 (346) 7,002 7,071 6,931
Adjusted total shareholders’ equity3 81,440 75,397 81,990 76,853 71,783
Profitability Ratio
Adjusted ROE4 10.83% -0.46% 8.54% 9.20% 9.66%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income attributable to CVS Health ÷ Total CVS Health shareholders’ equity
= 100 × 8,344 ÷ 76,461 = 10.91%

2 Adjusted net income. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total shareholders’ equity
= 100 × 8,819 ÷ 81,440 = 10.83%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. CVS Health Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health 8,344 4,149 7,910 7,179 6,634
Total assets 249,728 228,275 232,999 230,715 222,449
Profitability Ratio
ROA1 3.34% 1.82% 3.39% 3.11% 2.98%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,819 (346) 7,002 7,071 6,931
Adjusted total assets3 250,071 228,477 233,338 231,073 222,768
Profitability Ratio
Adjusted ROA4 3.53% -0.15% 3.00% 3.06% 3.11%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income attributable to CVS Health ÷ Total assets
= 100 × 8,344 ÷ 249,728 = 3.34%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 8,819 ÷ 250,071 = 3.53%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. CVS Health Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.