Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage
Fixed Charge Coverage

CVS Health Corp., debt and solvency ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

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.

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
	Selected Financial Data (USD $ in millions)
	Short-term debt
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt

	Total CVS Health shareholders’ equity
	Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors
	Walgreens Boots Alliance Inc.
	Debt to Equity, Sector
	Food & Drug Retailers
	Debt to Equity, Industry
	Consumer Services

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).

2018 Calculations

¹ Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
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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.

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
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt
	Total CVS Health shareholders’ equity
	Total capital
	Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors
	Walgreens Boots Alliance Inc.
	Debt to Capital, Sector
	Food & Drug Retailers
	Debt to Capital, Industry
	Consumer Services

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).

2018 Calculations

¹ Debt to capital = Total debt ÷ Total capital
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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.

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
	Current portion of long-term debt
	Long-term debt, excluding current portion
	Total debt

	Total assets
	Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors
	Walgreens Boots Alliance Inc.
	Debt to Assets, Sector
	Food & Drug Retailers
	Debt to Assets, Industry
	Consumer Services

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).

2018 Calculations

¹ Debt to assets = Total debt ÷ Total assets
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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.

CVS Health Corp., financial leverage 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)
	Total assets
	Total CVS Health shareholders’ equity
	Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors
	Walgreens Boots Alliance Inc.
	Financial Leverage, Sector
	Food & Drug Retailers
	Financial Leverage, Industry
	Consumer Services

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).

2018 Calculations

¹ Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
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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.

CVS Health Corp., interest 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
	Add: Net income attributable to noncontrolling interest
	Less: Income (loss) from discontinued operations, net of tax
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors
	Walgreens Boots Alliance Inc.
	Interest Coverage, Sector
	Food & Drug Retailers
	Interest Coverage, Industry
	Consumer Services

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).

2018 Calculations

¹ Interest coverage = EBIT ÷ Interest expense
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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.

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
	Add: Net income attributable to noncontrolling interest
	Less: Income (loss) from discontinued operations, net of tax
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Rental expense for operating leases, minimum rentals
	Earnings before fixed charges and tax

	Interest expense
	Rental expense for operating leases, minimum rentals
	Fixed charges
	Ratio
	Fixed charge coverage¹
	Benchmarks
	Fixed Charge Coverage, Competitors
	Walgreens Boots Alliance Inc.
	Fixed Charge Coverage, Sector
	Food & Drug Retailers
	Fixed Charge Coverage, Industry
	Consumer Services

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).

2018 Calculations

¹ Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
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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.

	CVS Health Corp.	Other companies (not purchased previously)
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CVS Health Corp. (CVS)

Long-term Debt and Solvency Analysis

Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Fixed Charge Coverage