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CVS Health Corp. (CVS)
Long-term Debt and Solvency Analysis
Difficulty: Beginner
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Ratios (Summary)
CVS Health Corp., debt and solvency ratios
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
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| Debt Ratios | ||||||
| Debt to equity | |
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| Debt to capital | |
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| Debt to assets | |
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| Financial leverage | |
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| Coverage Ratios | ||||||
| Interest coverage | |
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| Fixed charge coverage | |
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Based on: 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), 10-K (filing date: 2015-02-10).
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CVS Health Corp.’s debt to equity ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CVS Health Corp.’s debt to capital ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CVS Health Corp.’s debt to assets ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CVS Health Corp.’s financial leverage ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CVS Health Corp.’s interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CVS Health Corp.’s fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Debt to Equity
CVS Health Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
| Short-term debt | |
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| Current portion of long-term debt | |
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| Long-term debt, excluding current portion | |
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| Total debt | |
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| Total CVS Health shareholders’ equity | |
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| Ratio | ||||||
| Debt to equity1 | |
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| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Debt to Equity, Sector | ||||||
| Food & Drug Retailers | |
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| Debt to Equity, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CVS Health Corp.’s debt to equity ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Debt to Capital
CVS Health Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| Short-term debt | |
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| Current portion of long-term debt | |
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| Long-term debt, excluding current portion | |
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| Total debt | |
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| Total CVS Health shareholders’ equity | |
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| Total capital | |
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| Ratio | ||||||
| Debt to capital1 | |
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| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Debt to Capital, Sector | ||||||
| Food & Drug Retailers | |
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| Debt to Capital, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CVS Health Corp.’s debt to capital ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Debt to Assets
CVS Health Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| Short-term debt | |
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| Current portion of long-term debt | |
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| Long-term debt, excluding current portion | |
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| Total debt | |
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| Total assets | |
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| Ratio | ||||||
| Debt to assets1 | |
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| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Debt to Assets, Sector | ||||||
| Food & Drug Retailers | |
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| Debt to Assets, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CVS Health Corp.’s debt to assets ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Financial Leverage
CVS Health Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
| Total assets | |
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| Total CVS Health shareholders’ equity | |
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| Ratio | ||||||
| Financial leverage1 | |
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| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Financial Leverage, Sector | ||||||
| Food & Drug Retailers | |
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| Financial Leverage, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CVS Health Corp.’s financial leverage ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Interest Coverage
CVS Health Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
| Net income (loss) attributable to CVS Health | |
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| Add: Net income attributable to noncontrolling interest | |
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| Less: Income (loss) from discontinued operations, net of tax | |
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| Add: Income tax expense | |
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| Add: Interest expense | |
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| Earnings before interest and tax (EBIT) | |
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| Ratio | ||||||
| Interest coverage1 | |
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| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Interest Coverage, Sector | ||||||
| Food & Drug Retailers | |
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| Interest Coverage, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CVS Health Corp.’s interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Fixed Charge Coverage
CVS Health Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| Net income (loss) attributable to CVS Health | |
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| Add: Net income attributable to noncontrolling interest | |
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| Less: Income (loss) from discontinued operations, net of tax | |
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| Add: Income tax expense | |
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| Add: Interest expense | |
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| Earnings before interest and tax (EBIT) | |
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| Add: Rental expense for operating leases, minimum rentals | |
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| Earnings before fixed charges and tax | |
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| Interest expense | |
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| Rental expense for operating leases, minimum rentals | |
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| Fixed charges | |
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| Ratio | ||||||
| Fixed charge coverage1 | |
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| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Walgreens Boots Alliance Inc. | |
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| Fixed Charge Coverage, Sector | ||||||
| Food & Drug Retailers | |
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| Fixed Charge Coverage, Industry | ||||||
| Consumer Services | |
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Based on: 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), 10-K (filing date: 2015-02-10).
1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CVS Health Corp.’s fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |