Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

$24.99

Analysis of Solvency Ratios

Microsoft Excel

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Solvency Ratios (Summary)

CVS Health Corp., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

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).


Debt to Equity
The debt to equity ratio experienced a decline from 0.93 in 2020 to 0.74 in 2022, indicating a reduction in financial leverage relative to equity during this period. However, it rose again in subsequent years, reaching 0.88 in 2024, suggesting a modest increase in reliance on debt financing.
Debt to Equity (Including Operating Lease Liability)
When including operating lease liabilities, the debt to equity ratio follows a similar downward trend from 1.23 in 2020 to 1.00 in 2022, followed by a gradual increase to 1.10 in 2024. This reflects consistent treatment of lease obligations as debt and an overall moderate fluctuation in leverage.
Debt to Capital
The debt to capital ratio decreased from 0.48 in 2020 to 0.42 in 2022, indicating a reduction in the proportion of debt within the company’s capital structure. From 2023 onwards, the ratio increased slightly to 0.47 by 2024, implying a cautious uptick in debt levels relative to total capital.
Debt to Capital (Including Operating Lease Liability)
Including operating lease liabilities, the debt to capital ratio mirrors the previous trend, declining from 0.55 in 2020 to 0.50 in 2022 and then slightly increasing to 0.52 in 2024. This suggests that lease obligations have a consistent but moderate impact on overall capital structure assessments.
Debt to Assets
The debt to assets ratio reduced from 0.28 in 2020 to 0.23 in 2022, reflecting a decrease in debt relative to total assets. A slight rise to 0.26 by 2024 points to a marginal increase in debt levels, though still below the initial 2020 value.
Debt to Assets (Including Operating Lease Liability)
Including operating lease liabilities, the debt to assets ratio shows a steady decline from 0.37 in 2020 to 0.31 in 2022, with a mild increase to 0.33 in 2024. This underscores the impact of operating lease liabilities on the debt base and indicates a generally stable leverage profile with minor fluctuations.
Financial Leverage
Financial leverage decreased from 3.32 in 2020 to 3.10 in 2021 but rose to 3.35 by 2024. This suggests an overall increase in the company’s use of debt to finance its assets over the period, despite some intermediate variability.
Interest Coverage
The interest coverage ratio showed a variable pattern, increasing from 4.36 in 2020 to 5.16 in 2021, indicating improved ability to meet interest obligations. It then declined sharply to 3.46 in 2022, improved again to 5.20 in 2023, and dropped to a low of 3.08 in 2024. Such volatility points to inconsistent earnings or fluctuations in interest expense, affecting the company’s capacity to cover interest payments reliably.
Fixed Charge Coverage
Fixed charge coverage followed a similar volatile pattern to interest coverage, increasing from 2.75 in 2020 to 3.03 in 2021, then declining sharply to 2.16 in 2022. It rebounded to 3.15 in 2023 before declining again to 2.14 in 2024, mirroring challenges in covering fixed financial charges consistently.

Debt Ratios


Coverage Ratios


Debt to Equity

CVS Health Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Current portion of long-term debt
Long-term debt, excluding current portion
Total debt
 
Total CVS Health shareholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Equity, Sector
Health Care Equipment & Services
Debt to Equity, Industry
Health Care

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total debt
The total debt exhibits a downward trend from 2020 to 2022, decreasing consistently from $64,647 million to $52,254 million. However, this trend reverses in 2023 and 2024, with debt increasing to $61,610 million and then further to $66,270 million.
Total CVS Health shareholders’ equity
Shareholders’ equity shows a general upward trajectory from 2020 through 2024. Starting at $69,389 million in 2020, it rises steadily to $75,075 million in 2021, dips to $71,015 million in 2022, then increases again to $76,461 million in 2023, and slightly decreases to $75,560 million in 2024.
Debt to equity ratio
The debt to equity ratio declines markedly from 0.93 in 2020 to 0.74 in 2022, reflecting a relative reduction in leverage during that period. From 2023 onwards, the ratio increases again to 0.81 and 0.88 in 2024, indicating a moderate rise in financial leverage, though it remains below the 2020 level.

The data reflect an initial phase of debt reduction and equity strengthening between 2020 and 2022, suggesting a deleveraging strategy. Following this period, both debt and leverage ratios increase, indicating renewed borrowing or capital structure adjustments. Meanwhile, shareholders' equity remains relatively stable with minor fluctuations, supporting a broadly consistent equity base despite the changes in debt levels.


Debt to Equity (including Operating Lease Liability)

CVS Health Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Current portion of long-term debt
Long-term debt, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities
Total debt (including operating lease liability)
 
Total CVS Health shareholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Equity (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Equity (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total CVS Health shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total debt (including operating lease liability)
The total debt exhibited a declining trend from 85,042 million US dollars in 2020 to 70,732 million US dollars in 2022. However, after this period of reduction, debt levels increased in the subsequent years, reaching 79,385 million in 2023 and further rising to 82,920 million in 2024.
Total CVS Health shareholders’ equity
Shareholders’ equity showed a generally positive trajectory with fluctuations. Starting at 69,389 million US dollars in 2020, it increased to 75,075 million in 2021, declined slightly to 71,015 million in 2022, then rose again to 76,461 million in 2023 before experiencing a small decrease to 75,560 million in 2024. Overall, equity maintained a relatively stable level with moderate growth over the period.
Debt to equity (including operating lease liability)
The debt to equity ratio demonstrated a downward trend from 1.23 in 2020 to 1.00 in 2022, indicating improving leverage and a stronger equity base relative to debt. Following this low point, the ratio increased modestly to 1.04 in 2023 and 1.10 in 2024, reflecting the rising debt levels paired with stable equity. Despite this recent increase, the leverage remained lower than initial 2020 levels.

Debt to Capital

CVS Health Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ 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
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Capital, Sector
Health Care Equipment & Services
Debt to Capital, Industry
Health Care

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


Total Debt
The total debt demonstrated a general decline from 64,647 million USD at the end of 2020 to a low of 52,254 million USD by the end of 2022. After this reduction phase, debt levels increased in the subsequent years, reaching 66,270 million USD by the end of 2024. This pattern suggests an initial effort to deleverage followed by renewed borrowing activity in the latest years observed.
Total Capital
Total capital showed a decreasing trend from 134,036 million USD in 2020 to 123,269 million USD in 2022. However, from 2022 onward, total capital increased steadily, attaining 141,830 million USD by the end of 2024. This indicates a recovery in the company's capital base after a period of contraction.
Debt to Capital Ratio
The debt to capital ratio decreased steadily from 0.48 in 2020 to its lowest point of 0.42 in 2022, reflecting a reduced reliance on debt relative to capital during that period. Subsequently, the ratio increased to 0.47 by 2024, corresponding with the rise in total debt and total capital, signaling a modest increase in leverage compared to the immediate prior years.

Debt to Capital (including Operating Lease Liability)

CVS Health Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Current portion of long-term debt
Long-term debt, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities
Total debt (including operating lease liability)
Total CVS Health shareholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Capital (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Capital (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)
The total debt showed a decreasing trend from 85,042 million US dollars in 2020 to 70,732 million US dollars in 2022, reflecting a reduction in the debt burden over this period. However, starting in 2023, the total debt increased again to 79,385 million US dollars and further rose to 82,920 million US dollars in 2024, indicating a renewed accumulation of debt after the initial decline.
Total Capital (including operating lease liability)
Total capital slightly declined from 154,431 million US dollars in 2020 to 141,747 million US dollars in 2022, indicating some contraction in the capital base during these years. Following this, there was an upward trend with total capital rising to 155,846 million US dollars in 2023 and further to 158,480 million US dollars in 2024, surpassing the 2020 level.
Debt to Capital Ratio (including operating lease liability)
The debt to capital ratio decreased from 0.55 in 2020 to 0.50 in 2021 and 2022, suggesting an improvement in the company's leverage position during this period, likely due to the reduction in total debt and capital base. From 2023 onwards, the ratio slightly increased to 0.51 and then to 0.52 in 2024, corresponding to the increase in total debt relative to the capital base, signaling a moderate rise in leverage.

Debt to Assets

CVS Health Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Current portion of long-term debt
Long-term debt, excluding current portion
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Assets, Sector
Health Care Equipment & Services
Debt to Assets, Industry
Health Care

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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


An analysis of the provided financial data reveals several key trends regarding the company's debt and asset position over the five-year period from 2020 to 2024.

Total Debt
The total debt decreased from 64,647 million USD in 2020 to 52,254 million USD in 2022, indicating a significant reduction in liabilities over the first three years. However, from 2022 onwards, the total debt increased again to 61,610 million USD in 2023 and further to 66,270 million USD in 2024, surpassing the initial 2020 level. This suggests a period of deleveraging followed by a renewed increase in borrowing.
Total Assets
Total assets exhibited a relatively stable trend with minor fluctuations. The assets increased slightly from 230,715 million USD in 2020 to 232,999 million USD in 2021, then marginally declined to 228,275 million USD in 2022. Afterwards, total assets showed a more pronounced growth, reaching 249,728 million USD in 2023 and 253,215 million USD in 2024. The overall trend indicates gradual asset expansion over the analyzed period.
Debt to Assets Ratio
The debt to assets ratio declined from 0.28 in 2020 to a low of 0.23 in 2022, reflecting improved leverage and a stronger asset base relative to debt. However, this ratio began to rise again, reaching 0.25 in 2023 and 0.26 in 2024, consistent with the increase in total debt and asset growth during these years. Despite the recent increase, the leverage ratio remains below the early 2020 level.

Overall, the company experienced a deleveraging phase through 2022 marked by reduced debt and stable assets, which improved its leverage position. Subsequently, both debt and assets grew, leading to a moderate increase in leverage, yet still maintaining a level lower than that observed in 2020.


Debt to Assets (including Operating Lease Liability)

CVS Health Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Current portion of long-term debt
Long-term debt, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Assets (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Assets (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)

The total debt demonstrated a general downward trend from 85,042 million US dollars in 2020 to a low point of 70,732 million US dollars in 2022. However, subsequent years saw an increase, reaching 82,920 million US dollars by the end of 2024. This indicates a reduction in debt over the initial two years, followed by a gradual accumulation of debt in the later period.

Total Assets

Total assets fluctuated mildly in the first three years, slightly decreasing from 230,715 million US dollars in 2020 to 228,275 million US dollars in 2022. Following this period, there was a marked increase up to 253,215 million US dollars by the end of 2024, suggesting asset growth in the final two years under review.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio experienced a decline from 0.37 in 2020 to 0.31 in 2022, reflecting an improvement in the company's leverage position during this timeframe. Nonetheless, from 2022 onwards, the ratio reversed slightly increasing to 0.33 by the end of 2024. This trend correlates with the rising debt levels and asset growth, indicating a moderately higher leverage position relative to assets in the latter years.

Summary

Overall, the financial data reveals an initial phase of deleveraging accompanied by modest asset contraction, followed by a phase of building up both liabilities and assets. The debt to assets ratio’s dip and subsequent rise corresponds with these movements, highlighting a period of strategic financial restructuring followed by renewed debt accumulation. The asset base expansion in the most recent years offsets the increase in debt to maintain a relatively stable leverage ratio.


Financial Leverage

CVS Health Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Total assets
Total CVS Health shareholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Financial Leverage, Sector
Health Care Equipment & Services
Financial Leverage, Industry
Health Care

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total assets
The total assets exhibited a fluctuating but overall increasing trend over the five-year period. Starting at 230,715 million US dollars at the end of 2020, the value slightly increased to 232,999 million in 2021, then dropped to 228,275 million in 2022. Following this dip, there was a significant recovery and growth in assets, reaching 249,728 million in 2023 and further increasing to 253,215 million by the end of 2024. This indicates a positive expansion in asset base, particularly evident in the last two years.
Total CVS Health shareholders’ equity
Shareholders' equity showed an initial growth from 69,389 million US dollars in 2020 to 75,075 million in 2021. However, this was followed by a decline to 71,015 million in 2022. The equity rebounded in 2023, increasing to 76,461 million, but then experienced a slight decrease to 75,560 million in 2024. Overall, shareholders' equity maintained a relatively stable range with some volatility, demonstrating moderate fluctuations but no clear long-term upward or downward trend.
Financial leverage
The financial leverage ratio, representing the relationship between total assets and shareholders' equity, showed a decreasing trend initially, dropping from 3.32 in 2020 to 3.10 in 2021. This was followed by an increase to 3.21 in 2022, continuing upward slightly to 3.27 in 2023, and reaching 3.35 in 2024. The ratio indicates that leverage was reduced at first, but then progressively increased over the last three years, suggesting a gradual rise in reliance on debt or liabilities relative to equity during that period.

Interest Coverage

CVS Health Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health
Add: Net income attributable to noncontrolling interest
Less: Loss from discontinued operations, net of tax
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Interest Coverage, Sector
Health Care Equipment & Services
Interest Coverage, Industry
Health Care

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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT figures showed fluctuations over the five-year period. It initially increased slightly from 12,677 million USD in 2020 to 12,923 million USD in 2021. Then, there was a notable decline to 7,915 million USD in 2022, followed by a recovery to 13,831 million USD in 2023. In 2024, EBIT again decreased to 9,106 million USD. Overall, EBIT exhibited volatility with substantial variation in two years, indicating potential operational challenges or changes affecting profitability.
Interest expense
Interest expense decreased from 2,907 million USD in 2020 to 2,287 million USD in 2022, showing a downward trend in financing costs during this period. However, the interest expense rose again to 2,658 million USD in 2023 and further to 2,958 million USD in 2024, exceeding the initial 2020 level. This pattern suggests fluctuations in debt levels or interest rates impacting the company's financing cost over time.
Interest coverage ratio
The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, demonstrated considerable variability. It increased from 4.36 in 2020 to 5.16 in 2021, indicating improved capacity to cover interest costs. This ratio declined significantly to 3.46 in 2022, rose again to 5.20 in 2023, and dropped to its lowest point of 3.08 in 2024. These fluctuations reflect the combined effects of changes in EBIT and interest expense, with periods of reduced coverage raising potential concerns about financial risk.

Fixed Charge Coverage

CVS Health Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income attributable to CVS Health
Add: Net income attributable to noncontrolling interest
Less: Loss from discontinued operations, net of tax
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Operating lease cost
Earnings before fixed charges and tax
 
Interest expense
Operating lease cost
Fixed charges
Solvency Ratio
Fixed charge coverage1
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Fixed Charge Coverage, Sector
Health Care Equipment & Services
Fixed Charge Coverage, Industry
Health Care

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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

2 Click competitor name to see calculations.


Earnings before fixed charges and tax
The earnings before fixed charges and tax showed fluctuations over the five-year period. Starting at 15,347 million USD in 2020, the value slightly increased to 15,556 million USD in 2021. However, there was a notable decline to 10,494 million USD in 2022. This was followed by a recovery to 16,363 million USD in 2023, before dropping again to 11,529 million USD in 2024. The pattern indicates volatility with alternating periods of growth and decline.
Fixed charges
Fixed charges exhibited a gradual decrease from 5,577 million USD in 2020 to 4,866 million USD in 2022, reflecting a reduction in fixed financial commitments or costs during this period. Subsequently, fixed charges increased to 5,190 million USD in 2023 and further to 5,381 million USD in 2024, indicating a rising trend in fixed expenses in the latter years.
Fixed charge coverage ratio
The fixed charge coverage ratio indicates the company's ability to cover fixed charges with earnings before fixed charges and tax. The ratio improved from 2.75 in 2020 to 3.03 in 2021, suggesting stronger coverage. It then declined significantly to 2.16 in 2022, reflecting reduced capacity to cover fixed charges. The ratio recovered to 3.15 in 2023, the highest in the period analyzed, before decreasing again to 2.14 in 2024. This fluctuation mirrors the volatility seen in earnings and indicates varying risk levels in meeting fixed obligations across the years.