Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

CVS Health Corp. (NYSE:CVS)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2019 10.39% = 2.98% × 3.48
Dec 31, 2018 -1.02% = -0.30% × 3.37
Dec 31, 2017 17.57% = 6.96% × 2.52
Dec 31, 2016 14.44% = 5.63% × 2.56
Dec 31, 2015 14.08% = 5.59% × 2.52

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).

Three-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 10.39% = 2.59% × 1.15 × 3.48
Dec 31, 2018 -1.02% = -0.31% × 0.99 × 3.37
Dec 31, 2017 17.57% = 3.58% × 1.94 × 2.52
Dec 31, 2016 14.44% = 3.00% × 1.88 × 2.56
Dec 31, 2015 14.08% = 3.42% × 1.64 × 2.52

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).

Five-Component Disaggregation of ROE

CVS Health Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 10.39% = 0.74 × 0.75 × 4.71% × 1.15 × 3.48
Dec 31, 2018 -1.02% = -0.42 × 0.35 × 2.08% × 0.99 × 3.37
Dec 31, 2017 17.57% = 0.80 × 0.89 × 5.04% × 1.94 × 2.52
Dec 31, 2016 14.44% = 0.62 × 0.89 × 5.47% × 1.88 × 2.56
Dec 31, 2015 14.08% = 0.61 × 0.91 × 6.19% × 1.64 × 2.52

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).

Two-Component Disaggregation of ROA

CVS Health Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2019 2.98% = 2.59% × 1.15
Dec 31, 2018 -0.30% = -0.31% × 0.99
Dec 31, 2017 6.96% = 3.58% × 1.94
Dec 31, 2016 5.63% = 3.00% × 1.88
Dec 31, 2015 5.59% = 3.42% × 1.64

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).

Four-Component Disaggregation of ROA

CVS Health Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2019 2.98% = 0.74 × 0.75 × 4.71% × 1.15
Dec 31, 2018 -0.30% = -0.42 × 0.35 × 2.08% × 0.99
Dec 31, 2017 6.96% = 0.80 × 0.89 × 5.04% × 1.94
Dec 31, 2016 5.63% = 0.62 × 0.89 × 5.47% × 1.88
Dec 31, 2015 5.59% = 0.61 × 0.91 × 6.19% × 1.64

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).

Disaggregation of Net Profit Margin

CVS Health Corp., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2019 2.59% = 0.74 × 0.75 × 4.71%
Dec 31, 2018 -0.31% = -0.42 × 0.35 × 2.08%
Dec 31, 2017 3.58% = 0.80 × 0.89 × 5.04%
Dec 31, 2016 3.00% = 0.62 × 0.89 × 5.47%
Dec 31, 2015 3.42% = 0.61 × 0.91 × 6.19%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-09).