Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
CVS Health Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited a gradual decline from 0.87 at the end of Q1 2021 to a low near 0.73 in mid-2022, indicating a reduction in leverage relative to equity during that period. Subsequently, the ratio increased again, reaching around 0.88 by mid-2024 before slightly decreasing to 0.84 by the first quarter of 2025. This pattern reflects some variability but overall a moderate leverage position.
- Debt to Equity Ratio Including Operating Lease Liability
- When incorporating operating lease liabilities, the ratio showed a similar but consistently higher trend than the standard debt to equity measure. It decreased from 1.16 in early 2021 to about 0.99 in mid-2022, then reversed upwards to roughly 1.12-1.11 during 2023 and 2024, finally reducing marginally to 1.06 in Q1 2025. This suggests that lease obligations contribute a notable portion of the company’s overall leverage.
- Debt to Capital Ratio
- The debt to capital ratio remained relatively stable over the observed periods, oscillating between 0.42 and 0.47. It demonstrated a mild downward trend from 0.47 in early 2021 to a low of 0.42 in mid to late 2022, before rebounding to approximately 0.47 again by late 2024 and slightly declining to 0.46 at the start of 2025. This stability indicates a consistent capital structure with moderate reliance on debt.
- Debt to Capital Ratio Including Operating Lease Liability
- This metric followed a comparable trajectory to the basic debt to capital ratio but remained elevated by roughly 0.05 to 0.07. It declined from 0.54 in early 2021 to around 0.50 in mid-2022, then increased to the 0.53 range in 2023 and 2024, before easing slightly to 0.51 in Q1 2025. The impact of operating lease liabilities on total capital structure is clearly significant.
- Debt to Assets Ratio
- The debt to assets ratio declined gradually from 0.27 at the start of 2021 to a level near 0.23 by the end of 2022, showing improved asset coverage relative to debt. It then increased to approximately 0.26 through 2023 and 2024, remaining stable close to this level into early 2025. This indicates a modestly increased debt load relative to assets in recent periods but still within a conservative range.
- Debt to Assets Ratio Including Operating Lease Liability
- Accounting for operating lease liabilities pushed this ratio upward by about 0.06 to 0.08 points throughout the period. It fell from 0.36 to roughly 0.31 between early 2021 and late 2022, then rose back gradually to the 0.33 mark across 2023 and early 2025, implying ongoing lease-related obligations add a significant component to total debt exposure.
- Financial Leverage Ratio
- The financial leverage ratio (total assets to equity) fluctuated between 3.06 and 3.44 across the examined quarters. There was a dip to around 3.06 in mid-2022, followed by an upward movement that peaked near 3.44 in mid-2023, and a modest decline to 3.32 by early 2025. This suggests some variability in the company's reliance on equity vs. total assets for financing during the period.
- Interest Coverage Ratio
- The interest coverage ratio demonstrated considerable volatility. It increased from 4.52 in Q1 2021 to a peak of about 5.49 by mid-2022, indicating strong earnings relative to interest expense. However, there was a sharp decline to as low as 2.71 in late 2022 and mid-2023, followed by a recovery to around 5.59 at the end of 2023. The ratio then trended downward again to approximately 3.37 by early 2025. This pattern reflects fluctuations in operating earnings or interest costs affecting the ability to cover interest obligations consistently.
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Debt Ratios
Coverage Ratios
Debt to Equity
CVS Health Corp., debt to equity calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 1,259) | 2,119) | 800) | —) | 2,719) | 200) | —) | 1,000) | —) | —) | —) | —) | —) | —) | —) | —) | 252) | ||||||
| Current portion of long-term debt | 4,411) | 3,624) | 4,910) | 3,731) | 3,731) | 2,772) | 2,132) | 1,402) | 1,778) | 1,778) | 1,363) | 4,019) | 4,217) | 4,205) | 1,561) | 60) | 2,422) | ||||||
| Long-term debt, excluding current portion | 59,040) | 60,527) | 59,824) | 62,643) | 57,694) | 58,638) | 59,782) | 61,419) | 56,450) | 50,476) | 50,848) | 50,797) | 52,063) | 51,971) | 56,832) | 59,294) | 59,270) | ||||||
| Total debt | 64,710) | 66,270) | 65,534) | 66,374) | 64,144) | 61,610) | 61,914) | 63,821) | 58,228) | 52,254) | 52,211) | 54,816) | 56,280) | 56,176) | 58,393) | 59,354) | 61,944) | ||||||
| Total CVS Health shareholders’ equity | 76,929) | 75,560) | 74,944) | 74,930) | 73,968) | 76,461) | 74,337) | 72,726) | 71,382) | 71,015) | 70,683) | 75,184) | 73,830) | 75,075) | 74,308) | 73,244) | 70,850) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 0.84 | 0.88 | 0.87 | 0.89 | 0.87 | 0.81 | 0.83 | 0.88 | 0.82 | 0.74 | 0.74 | 0.73 | 0.76 | 0.75 | 0.79 | 0.81 | 0.87 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.27 | 0.30 | 0.38 | 0.38 | 0.38 | 0.38 | 0.41 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.48 | — | — | — | — | ||||||
| Elevance Health Inc. | 0.71 | 0.76 | 0.62 | 0.66 | 0.65 | 0.64 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.66 | 0.65 | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Medtronic PLC | 0.58 | 0.50 | 0.49 | 0.49 | 0.49 | 0.47 | 0.55 | 0.51 | 0.44 | 0.46 | 0.48 | 0.49 | 0.50 | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.86 | 0.83 | 0.83 | 0.84 | 0.85 | 0.70 | 0.75 | 0.80 | 0.87 | 0.74 | 0.65 | 0.71 | 0.65 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Total CVS Health shareholders’ equity
= 64,710 ÷ 76,929 = 0.84
2 Click competitor name to see calculations.
The financial data over multiple quarters reveals several notable trends in debt, equity, and leverage ratios.
- Total Debt
- The total debt experienced a general decline from the beginning of the period until late 2022. Starting at approximately 61.9 billion USD in March 2021, it decreased steadily to a low of around 52.2 billion USD by December 2022. This downward trend suggests active debt reduction or repayment strategies over this time frame.
- From early 2023 onward, total debt reversed its previous decline, increasing substantially to approximately 66.4 billion USD by December 2024. The increase was most pronounced in mid-2023, peaking around 66.3 billion USD at the end of 2024, before slightly decreasing to approximately 64.7 billion USD by March 2025. This rise indicates new borrowing or other forms of debt acquisition during this latter period.
- Total Shareholders’ Equity
- Equity showed a generally stable and slightly upward trajectory over the full period. Beginning at about 70.9 billion USD in early 2021, it increased steadily with minor fluctuations to reach roughly 76.9 billion USD by March 2025. The trend reflects retained earnings growth and possibly capital injections that slightly outpaced losses or dividend payments during this interval.
- There were minor dips observed in the equity value around late 2022 and early 2024, yet these were temporary and followed by recoveries, maintaining the overall upward trend.
- Debt to Equity Ratio
- The leverage ratio declined from 0.87 to 0.74 during the period of decreasing debt until late 2022, reflecting improved solvency and reduced financial risk as debt levels fell in relation to equity.
- Following the rise in debt from early 2023, the debt to equity ratio increased again, reaching a peak near 0.89 by mid-2024, indicative of greater reliance on debt financing. It then slightly decreased to 0.84 by March 2025, suggesting some stabilization or slight deleveraging after the peak.
In summary, the data exhibits a phase of deleveraging with declining debt and steady equity growth until late 2022, followed by a significant increase in debt levels through 2023 and 2024, which raised the leverage ratio. Equity growth remained fairly consistent throughout, supporting a relatively stable capital base despite fluctuations in borrowing.
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Debt to Equity (including Operating Lease Liability)
CVS Health Corp., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total CVS Health shareholders’ equity
= 81,213 ÷ 76,929 = 1.06
The analysis of the quarterly financial data reveals several notable trends concerning the company's total debt, shareholders’ equity, and debt-to-equity ratio over the period from March 2021 to March 2025.
- Total Debt (including operating lease liability)
- The total debt exhibited an overall decreasing trend from March 2021 through December 2022, falling from approximately $82.3 billion to about $70.7 billion. This decline indicates efforts to reduce leverage during that timeframe. However, starting in March 2023, the total debt began to increase again, peaking around $83.8 billion by June 2024 before a modest decline to roughly $81.2 billion at the end of the period. This pattern suggests a renewed increase in borrowing or lease liabilities after a period of deleveraging.
- Total Shareholders’ Equity
- The shareholders’ equity displayed relatively stable growth with minor fluctuations within the period. From approximately $70.9 billion in March 2021, the equity steadily increased to around $76.5 billion by December 2023. There was a slight dip observed around March 2024 but this was followed by a recovery, reaching approximately $76.9 billion by March 2025. The trend demonstrates a generally positive trajectory in equity, reflecting retained earnings or other equity-enhancing factors.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio showed a decreasing trend during the initial two years, moving from 1.16 in March 2021 down to 1.00 by December 2022, consistent with the reduction in total debt. This ratio then increased again, peaking at around 1.13 in June 2023, followed by moderate fluctuations around the 1.10 mark through to March 2025. The movement of this ratio indicates an initial strategy of deleveraging relative to equity, followed by a moderate increase in leverage or changes in the capital structure in the later periods.
In summary, the financial metrics suggest an initial period of debt reduction accompanied by steadier equity growth, which contributed to improved leverage ratios. The later timeframe shows a degree of balance with increases in both debt and equity but a moderate rise in the debt-to-equity ratio, indicating a slight shift toward higher leverage while maintaining equity stability.
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Debt to Capital
CVS Health Corp., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 1,259) | 2,119) | 800) | —) | 2,719) | 200) | —) | 1,000) | —) | —) | —) | —) | —) | —) | —) | —) | 252) | ||||||
| Current portion of long-term debt | 4,411) | 3,624) | 4,910) | 3,731) | 3,731) | 2,772) | 2,132) | 1,402) | 1,778) | 1,778) | 1,363) | 4,019) | 4,217) | 4,205) | 1,561) | 60) | 2,422) | ||||||
| Long-term debt, excluding current portion | 59,040) | 60,527) | 59,824) | 62,643) | 57,694) | 58,638) | 59,782) | 61,419) | 56,450) | 50,476) | 50,848) | 50,797) | 52,063) | 51,971) | 56,832) | 59,294) | 59,270) | ||||||
| Total debt | 64,710) | 66,270) | 65,534) | 66,374) | 64,144) | 61,610) | 61,914) | 63,821) | 58,228) | 52,254) | 52,211) | 54,816) | 56,280) | 56,176) | 58,393) | 59,354) | 61,944) | ||||||
| Total CVS Health shareholders’ equity | 76,929) | 75,560) | 74,944) | 74,930) | 73,968) | 76,461) | 74,337) | 72,726) | 71,382) | 71,015) | 70,683) | 75,184) | 73,830) | 75,075) | 74,308) | 73,244) | 70,850) | ||||||
| Total capital | 141,639) | 141,830) | 140,478) | 141,304) | 138,112) | 138,071) | 136,251) | 136,547) | 129,610) | 123,269) | 122,894) | 130,000) | 130,110) | 131,251) | 132,701) | 132,598) | 132,794) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.46 | 0.47 | 0.47 | 0.47 | 0.46 | 0.45 | 0.45 | 0.47 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | 0.43 | 0.44 | 0.45 | 0.47 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.21 | 0.23 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.31 | 0.31 | 0.32 | 0.31 | 0.33 | — | — | — | — | ||||||
| Elevance Health Inc. | 0.41 | 0.43 | 0.38 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.40 | 0.40 | 0.39 | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Medtronic PLC | 0.37 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.41 | 0.43 | 0.44 | 0.46 | 0.43 | 0.39 | 0.41 | 0.39 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 64,710 ÷ 141,639 = 0.46
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a general downward trend from March 2021 through December 2022, decreasing from $61.9 billion to approximately $52.3 billion. However, starting in the first quarter of 2023, total debt increased noticeably, reaching a peak of around $66.4 billion by December 2024, before slightly declining to about $64.7 billion by March 2025.
- Total Capital
- Total capital showed a slight decline from March 2021 ($132.8 billion) to December 2022 ($123.3 billion), indicating a contraction during this period. From early 2023 onward, there was a clear upward trajectory, peaking near $141.8 billion in December 2024, and then stabilizing at approximately $141.6 billion by March 2025.
- Debt to Capital Ratio
- The debt to capital ratio decreased steadily from 0.47 in March 2021 to a low of 0.42 by December 2022, reflecting a reduction in leverage relative to total capital. Beginning in early 2023, the ratio reversed this trend, increasing back to a range between 0.45 and 0.47, and remaining relatively stable near 0.46 by the end of the observation period in March 2025.
- Overall Analysis
- The data suggests that the company reduced its leverage from 2021 through the end of 2022 by lowering total debt and experiencing a decrease in total capital. Starting in 2023, both total debt and capital increased significantly, with debt rising proportionally faster, causing the debt to capital ratio to increase again. This indicates a shift toward higher leverage while the company's capital base expanded. The stabilization of the debt to capital ratio near 0.46 toward the end of the period signals a maintained balance between debt and equity financing in recent quarters.
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Debt to Capital (including Operating Lease Liability)
CVS Health Corp., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 81,213 ÷ 158,142 = 0.51
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a generally decreasing trend from March 2021 to December 2022, declining from 82,317 million USD to 70,732 million USD. This reduction demonstrates the company's efforts in debt management during this period. Starting from March 2023, total debt increased again, reaching a peak of 83,822 million USD by June 2024, before slightly declining to 81,213 million USD in March 2025. This recent increase indicates a strategic shift possibly linked to financing activities or operational requirements.
- Total Capital (Including Operating Lease Liability)
- Total capital remained relatively stable with minor fluctuations over the observed periods. It decreased slightly from 153,167 million USD in March 2021 to 141,747 million USD in December 2022, reflecting a period of consolidated or controlled capital growth. From March 2023 onwards, total capital rebounded, peaking at 158,752 million USD in June 2024, and maintained a level around 158,000 million USD toward early 2025. This suggests renewed capital investments or equity enhancements in the latter periods.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio showed a gradual decline from 0.54 in March 2021 to 0.50 during the end of 2021 and through most of 2022, indicating a relative decrease in leverage during this timeframe. From early 2023 onward, the ratio rose moderately to around 0.53 by mid-2024, reflecting increased use of debt within the capital structure. However, the ratio reduced slightly to 0.51 by March 2025. Overall, the ratio remained in a narrow range between 0.50 and 0.54, evidencing a consistent balance in the capital structure despite some shifts in debt levels.
- Summary of Trends
- The data indicates a phase of debt reduction and moderate capital contraction until late 2022, followed by a period of increasing debt and capital from 2023 onward. The company appears to have maintained a relatively stable leverage ratio throughout the observed periods, suggesting a consistent approach to capital structure management. The slight increases in debt in recent quarters may relate to growth initiatives or other strategic financial decisions, while stable capital levels imply an ongoing commitment to maintaining financial stability.
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Debt to Assets
CVS Health Corp., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 1,259) | 2,119) | 800) | —) | 2,719) | 200) | —) | 1,000) | —) | —) | —) | —) | —) | —) | —) | —) | 252) | ||||||
| Current portion of long-term debt | 4,411) | 3,624) | 4,910) | 3,731) | 3,731) | 2,772) | 2,132) | 1,402) | 1,778) | 1,778) | 1,363) | 4,019) | 4,217) | 4,205) | 1,561) | 60) | 2,422) | ||||||
| Long-term debt, excluding current portion | 59,040) | 60,527) | 59,824) | 62,643) | 57,694) | 58,638) | 59,782) | 61,419) | 56,450) | 50,476) | 50,848) | 50,797) | 52,063) | 51,971) | 56,832) | 59,294) | 59,270) | ||||||
| Total debt | 64,710) | 66,270) | 65,534) | 66,374) | 64,144) | 61,610) | 61,914) | 63,821) | 58,228) | 52,254) | 52,211) | 54,816) | 56,280) | 56,176) | 58,393) | 59,354) | 61,944) | ||||||
| Total assets | 255,585) | 253,215) | 252,427) | 252,481) | 249,743) | 249,728) | 251,306) | 250,071) | 239,330) | 228,275) | 231,212) | 230,279) | 232,873) | 232,999) | 234,891) | 231,164) | 229,606) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.25 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.25 | 0.26 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.16 | 0.17 | 0.20 | 0.20 | 0.20 | 0.20 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | — | — | — | — | ||||||
| Elevance Health Inc. | 0.25 | 0.27 | 0.23 | 0.25 | 0.24 | 0.23 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Medtronic PLC | 0.31 | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | 0.30 | 0.29 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.23 | 0.22 | 0.23 | 0.25 | 0.23 | 0.20 | 0.22 | 0.21 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 64,710 ÷ 255,585 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrated a general downtrend from March 2021 through December 2022, declining from $61,944 million to $52,254 million. However, starting in March 2023, the trend reversed as debt levels increased significantly, peaking at $66,374 million in June 2024 before slightly decreasing to $64,710 million by March 2025. This indicates an initial phase of deleveraging followed by increased borrowing over the most recent periods.
- Total Assets
- Total assets exhibited moderate growth overall, rising from $229,606 million in March 2021 to $255,585 million by March 2025. There were minor fluctuations in certain quarters, but the underlying trend was upward, suggesting consistent asset accumulation or revaluation over the five-year span. The increase in assets appears steady, with no abrupt declines recorded during the period.
- Debt to Assets Ratio
- The debt to assets ratio decreased from 0.27 in March 2021 to a low of 0.23 in September and December 2022, reflecting a reduced leverage position. From early 2023 onward, the ratio fluctuated between 0.24 and 0.26, indicating a modest increase in leverage relative to the prior trough. Despite the recent elevation, the ratio remains near historical levels seen at the beginning of the period, showing a return to moderate leverage rather than a substantial risk increase.
- Overall Analysis
- Over the course of the observed periods, the company initially reduced its indebtedness while moderately increasing its asset base, thereby improving its leverage profile. However, beginning in early 2023, both total debt and the debt to assets ratio increased, suggesting renewed borrowing activity or financial strategy changes. Asset growth continued steadily, supporting the capacity to manage increased debt. The current leverage ratio remains within a similar range as earlier periods, indicating that while debt levels have risen, proportional asset growth has helped maintain relative financial stability.
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Debt to Assets (including Operating Lease Liability)
CVS Health Corp., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 81,213 ÷ 255,585 = 0.32
- Total Debt (including operating lease liability)
- The total debt exhibited a gradual decline from March 2021 through December 2022, decreasing from approximately $82.3 billion to $70.7 billion. Subsequently, from March 2023 to June 2024, the debt increased again, peaking near $83.8 billion in June 2024. Thereafter, it experienced a slight reduction, ending near $81.2 billion by March 2025. This pattern indicates a phase of deleveraging followed by increased borrowing and a moderate reduction towards the latest quarter.
- Total Assets
- Total assets showed a relatively steady upward trend over the reported period. Starting at about $229.6 billion in March 2021, assets grew consistently, reaching approximately $255.6 billion by March 2025. This growth reflects an expansion in the asset base, with the most notable acceleration occurring from December 2022 onward.
- Debt to Assets Ratio (including operating lease liability)
- The debt-to-assets ratio declined from 0.36 in March 2021 to a low near 0.31 by December 2022, indicating improved leverage and a stronger asset coverage of debt during this period. Following this, the ratio stabilized around the 0.32 to 0.33 range from March 2023 through March 2025, suggesting a maintained balance between debt levels and asset growth in recent quarters.
- Summary of Trends and Insights
- The data reveal a strategic reduction in debt relative to assets through 2022, implying efforts to strengthen the balance sheet or reduce financial risk. Subsequently, the rise in total debt alongside increased asset levels suggests reinvestment or financing for growth initiatives. The relatively stable debt-to-assets ratio in the later quarters implies consistent leverage management, maintaining financial stability despite fluctuations in absolute debt figures. Overall, the company demonstrates a cautious approach to balancing debt and asset growth over the period analyzed.
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Financial Leverage
CVS Health Corp., financial leverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 255,585) | 253,215) | 252,427) | 252,481) | 249,743) | 249,728) | 251,306) | 250,071) | 239,330) | 228,275) | 231,212) | 230,279) | 232,873) | 232,999) | 234,891) | 231,164) | 229,606) | ||||||
| Total CVS Health shareholders’ equity | 76,929) | 75,560) | 74,944) | 74,930) | 73,968) | 76,461) | 74,337) | 72,726) | 71,382) | 71,015) | 70,683) | 75,184) | 73,830) | 75,075) | 74,308) | 73,244) | 70,850) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 3.32 | 3.35 | 3.37 | 3.37 | 3.38 | 3.27 | 3.38 | 3.44 | 3.35 | 3.21 | 3.27 | 3.06 | 3.15 | 3.10 | 3.16 | 3.16 | 3.24 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 1.67 | 1.71 | 1.87 | 1.86 | 1.87 | 1.90 | 1.92 | 1.97 | 1.99 | 2.03 | 2.04 | 2.03 | 2.09 | — | — | — | — | ||||||
| Elevance Health Inc. | 2.82 | 2.83 | 2.66 | 2.68 | 2.76 | 2.77 | 2.88 | 2.86 | 2.92 | 2.83 | 2.86 | 2.82 | 2.79 | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 1.12 | 1.14 | 1.14 | 1.13 | 1.13 | 1.16 | 1.17 | 1.17 | 1.16 | 1.17 | 1.15 | 1.14 | 1.13 | — | — | — | — | ||||||
| Medtronic PLC | 1.87 | 1.79 | 1.75 | 1.75 | 1.77 | 1.77 | 1.83 | 1.80 | 1.71 | 1.73 | 1.75 | 1.76 | 1.78 | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 3.26 | 3.22 | 3.17 | 3.20 | 3.28 | 3.08 | 3.34 | 3.40 | 3.49 | 3.16 | 3.26 | 3.16 | 3.04 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Total CVS Health shareholders’ equity
= 255,585 ÷ 76,929 = 3.32
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends related to the company's assets, shareholders' equity, and financial leverage over the observed period.
- Total Assets
- The total assets have exhibited a moderate upward trajectory overall. Starting at approximately $229.6 billion in March 2021, assets fluctuated slightly but generally increased to around $255.6 billion by March 2025. There were periods of minor decline, such as in late 2021 and early 2022, but the trend resumed its upward momentum thereafter, indicating steady asset accumulation or appreciation over the four-year span.
- Total CVS Health Shareholders’ Equity
- Shareholders’ equity displayed more variability compared to total assets. Initial equity was about $70.9 billion in March 2021, rising to a peak near $76.5 billion by December 2023, before experiencing slight declines and partial recoveries in subsequent quarters. By March 2025, equity stood at approximately $76.9 billion, marginally higher than earlier levels. This pattern suggests periods of earnings retention and possibly equity issuances or buybacks impacting the equity base.
- Financial Leverage Ratio
- The financial leverage ratio, reflecting the proportion of assets financed by shareholders’ equity versus liabilities, showed a degree of fluctuation within a relatively narrow range. Beginning at 3.24 in the first quarter of 2021, it declined somewhat to a low near 3.06 mid-2022, indicating a temporary reduction in leverage. Subsequently, the ratio increased, reaching a peak of 3.44 around mid-2023, followed by slight decreases and stabilization in the low 3.3 range toward the end of the period. This suggests that the company's use of debt relative to equity experienced modest shifts but remained consistently above a leverage of 3, indicating reliance on debt financing as a significant component of capital structure.
In summary, the company demonstrated steady asset growth and relatively stable equity levels with moderate fluctuations. The financial leverage remained consistently elevated throughout the period, reflecting ongoing debt utilization. These trends collectively indicate a capital structure strategy that leverages debt while maintaining steady equity growth, supporting the company’s overall financial stability and growth objectives.
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Interest Coverage
CVS Health Corp., interest coverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) attributable to CVS Health | 1,779) | 1,644) | 87) | 1,770) | 1,113) | 2,046) | 2,261) | 1,901) | 2,136) | 2,302) | (3,416) | 2,951) | 2,312) | 1,306) | 1,598) | 2,783) | 2,223) | ||||||
| Add: Net income attributable to noncontrolling interest | 3) | (21) | (16) | (2) | 11) | 1) | 4) | 13) | 6) | (2) | 7) | 10) | 1) | (10) | (11) | 8) | 1) | ||||||
| Less: Loss from discontinued operations, net of tax | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Add: Income tax expense | 835) | 503) | 34) | 569) | 456) | 658) | 754) | 656) | 737) | 809) | (1,047) | 1,068) | 633) | 274) | 558) | 944) | 746) | ||||||
| Add: Interest expense | 785) | 758) | 752) | 732) | 716) | 690) | 693) | 686) | 589) | 552) | 566) | 583) | 586) | 608) | 602) | 636) | 657) | ||||||
| Earnings before interest and tax (EBIT) | 3,402) | 2,884) | 857) | 3,069) | 2,296) | 3,395) | 3,712) | 3,256) | 3,468) | 3,661) | (3,890) | 4,612) | 3,532) | 2,178) | 2,747) | 4,371) | 3,627) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 3.37 | 3.08 | 3.33 | 4.41 | 4.55 | 5.20 | 5.59 | 2.71 | 3.43 | 3.46 | 2.75 | 5.49 | 5.27 | 5.16 | 4.92 | 4.60 | 4.52 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 14.40 | 13.55 | 12.65 | 11.74 | 11.46 | 11.46 | 10.79 | 11.34 | 13.06 | 15.89 | 18.41 | 20.07 | 18.10 | — | — | — | — | ||||||
| Elevance Health Inc. | 7.14 | 7.67 | 8.52 | 9.07 | 8.70 | 8.49 | 8.87 | 9.76 | 9.95 | 10.13 | 10.75 | 10.71 | 11.01 | — | — | — | — | ||||||
| Medtronic PLC | 7.65 | 7.73 | 8.87 | 8.97 | 9.90 | 9.43 | 10.15 | 11.02 | 10.88 | 10.98 | 10.95 | 10.18 | 5.65 | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 7.94 | 6.14 | 6.39 | 6.79 | 7.53 | 9.97 | 10.21 | 10.99 | 12.25 | 13.59 | 14.66 | 14.45 | 14.26 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= (3,402 + 2,884 + 857 + 3,069)
÷ (785 + 758 + 752 + 732)
= 3.37
2 Click competitor name to see calculations.
The analysis of the financial data reveals several important trends and fluctuations over the course of the observed periods.
- Earnings before Interest and Tax (EBIT)
- The EBIT values demonstrate notable volatility throughout the periods. Initially, EBIT rose from 3,627 million USD in March 2021 to a peak of 4,612 million USD in June 2022, indicating an improving operational performance. However, there is a significant dip to a negative figure of -3,890 million USD in September 2022, which represents a substantial loss in that quarter. Following this, EBIT recovers steadily, with some oscillations, reaching levels above 3,000 million USD in the subsequent quarters. The lowest values occur sporadically, suggesting episodic challenges impacting profitability, but the trend after the negative spike shows attempts at recovery and stabilization.
- Interest Expense
- Interest expense shows a gradual and consistent upward trend over the entire time span. Starting at 657 million USD in March 2021, the expense increases steadily to reach 785 million USD by March 2025. This consistent rise suggests either increased debt levels, changes in interest rates, or refinancing at higher costs, which results in higher financing charges for the company.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations through EBIT, also shows significant variation. Initial values around 4.5 to 5.5 during the first several quarters indicate a relatively strong ability to cover interest expenses. A sharp decline to 2.75 in June 2022 and 2.71 in June 2023 coincides with the periods of lower EBIT, reflecting weakened interest coverage capacity. The ratio rebounds to 5.59 in September 2023, suggesting a temporary recovery in operational earnings relative to interest costs. However, in the most recent quarters, the ratio declines again to around 3.3, indicating moderate yet more constrained coverage capability.
Overall, the earnings performance displays marked variability, with a notable downturn followed by partial recovery, while interest expenses steadily rise, placing pressure on financial leverage. The interest coverage ratio follows EBIT trends closely, suggesting sensitivity of interest sustainability to fluctuations in operational profitability. This pattern highlights potential areas of financial risk, especially in quarters exhibiting negative EBIT, where the ability to service debt interest diminishes significantly.
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