Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
CVS Health Corp., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio has shown a consistent upward trend from 21.25 in 2020 to 28.53 in 2024. This indicates that the company is increasingly efficient in generating sales from its fixed assets over the observed period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted ratio also demonstrates steady growth, rising from 8.04 in 2020 to 12.81 in 2024. The increase suggests improved utilization of fixed assets when considering leased assets, reflecting potentially more effective asset management and leasing strategies.
- Total Asset Turnover
- Total asset turnover has gradually increased from 1.16 in 2020 to 1.46 in 2024. This upward trend indicates an enhanced ability to generate revenue from the total asset base, implying improved operational efficiency in asset utilization on a broader scale.
- Equity Turnover
- The equity turnover ratio has risen from 3.86 in 2020 to 4.91 in 2024. This growth suggests that the company is generating more sales per unit of equity, highlighting an increasingly effective use of shareholders’ equity to drive revenue growth.
Net Fixed Asset Turnover
CVS Health Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from customers | 370,656) | 356,623) | 321,629) | 290,912) | 267,908) | |
| Property and equipment, net | 12,993) | 13,183) | 12,873) | 12,896) | 12,606) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 28.53 | 27.05 | 24.98 | 22.56 | 21.25 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.94 | 3.95 | 4.76 | 4.81 | 3.83 | |
| Elevance Health Inc. | 37.66 | 39.05 | 36.07 | 34.94 | 34.69 | |
| Intuitive Surgical Inc. | 1.80 | 2.01 | 2.62 | 3.04 | 2.76 | |
| Medtronic PLC | 5.28 | 5.61 | 5.85 | 5.77 | 5.99 | |
| UnitedHealth Group Inc. | 37.44 | 32.10 | 31.81 | 31.81 | 29.64 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 20.62 | 20.16 | 19.90 | 18.93 | 17.74 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 8.88 | 8.80 | 9.32 | 9.09 | 8.34 | |
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
Net fixed asset turnover = Revenues from customers ÷ Property and equipment, net
= 370,656 ÷ 12,993 = 28.53
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period assessed.
- Revenues from customers
- A continuous increase in revenues is observed each year, starting from 267,908 million US dollars in 2020 and rising to 370,656 million US dollars in 2024. This indicates a strong upward trend in sales or service income, reflecting growth in the company’s operational scale or market demand.
- Property and equipment, net
- The net value of property and equipment remains relatively stable throughout the period. Starting at 12,606 million US dollars in 2020, it shows slight fluctuations, with a peak at 13,183 million US dollars in 2023, before a modest decrease to 12,993 million US dollars in 2024. This suggests limited expansion or investment in fixed assets during these years.
- Net fixed asset turnover
- This ratio shows a consistent upward trajectory from 21.25 in 2020 to 28.53 in 2024. The increase in turnover ratio indicates improved efficiency in utilizing fixed assets to generate revenues. Even though the net fixed assets remained nearly constant, the company has been able to produce higher revenue volumes per unit of fixed asset.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
CVS Health Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from customers | 370,656) | 356,623) | 321,629) | 290,912) | 267,908) | |
| Property and equipment, net | 12,993) | 13,183) | 12,873) | 12,896) | 12,606) | |
| Operating lease right-of-use assets | 15,944) | 17,252) | 17,872) | 19,122) | 20,729) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 28,937) | 30,435) | 30,745) | 32,018) | 33,335) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 12.81 | 11.72 | 10.46 | 9.09 | 8.04 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 3.58 | 3.56 | 4.25 | 4.26 | 3.42 | |
| Elevance Health Inc. | 33.57 | 34.43 | 31.64 | 30.12 | 29.26 | |
| Intuitive Surgical Inc. | 1.75 | 1.97 | 2.53 | 2.93 | 2.66 | |
| Medtronic PLC | 4.53 | 4.72 | 5.06 | 4.84 | 5.02 | |
| UnitedHealth Group Inc. | 25.58 | 22.48 | 21.54 | 21.54 | 19.55 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 13.97 | 13.28 | 12.65 | 11.63 | 10.46 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 7.33 | 7.17 | 7.48 | 7.17 | 6.51 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues from customers ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 370,656 ÷ 28,937 = 12.81
2 Click competitor name to see calculations.
- Revenues from Customers
- There is a consistent upward trend in revenues over the five-year period. Revenues increased from US$267,908 million in 2020 to US$370,656 million in 2024, indicating a steady growth trajectory. The year-on-year increase suggests effective business expansion or increased market demand.
- Property and Equipment, Net
- This asset category shows a gradual decrease in value, declining from US$33,335 million in 2020 to US$28,937 million in 2024. The consistent reduction in net property and equipment suggests asset disposals, depreciation, or a shift away from capital-intensive assets.
- Net Fixed Asset Turnover
- The turnover ratio has improved significantly, rising from 8.04 in 2020 to 12.81 in 2024. This increase indicates enhanced efficiency in utilizing fixed assets to generate revenues. The improvement in this ratio, coupled with decreasing net fixed assets and increasing revenues, reflects a more effective asset management strategy.
- Overall Insights
- The data reveals a positive overall performance trend, with rising revenues and improved fixed asset utilization. The reduction in net property and equipment alongside increasing turnover suggests the company is optimizing its asset base to support revenue growth. These patterns may point to strategic decisions focused on leaner operations and improved operational efficiency.
Total Asset Turnover
CVS Health Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from customers | 370,656) | 356,623) | 321,629) | 290,912) | 267,908) | |
| Total assets | 253,215) | 249,728) | 228,275) | 232,999) | 230,715) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.46 | 1.43 | 1.41 | 1.25 | 1.16 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.52 | 0.55 | 0.59 | 0.57 | 0.48 | |
| Elevance Health Inc. | 1.50 | 1.56 | 1.51 | 1.41 | 1.39 | |
| Intuitive Surgical Inc. | 0.45 | 0.46 | 0.48 | 0.42 | 0.39 | |
| Medtronic PLC | 0.36 | 0.34 | 0.35 | 0.32 | 0.32 | |
| UnitedHealth Group Inc. | 1.32 | 1.34 | 1.31 | 1.34 | 1.30 | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.19 | 1.20 | 1.17 | 1.09 | 1.03 | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.75 | 0.73 | 0.75 | 0.70 | 0.64 | |
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
Total asset turnover = Revenues from customers ÷ Total assets
= 370,656 ÷ 253,215 = 1.46
2 Click competitor name to see calculations.
The financial data from the period ending December 31, 2020, through December 31, 2024, reveals several key trends in revenue, asset base, and efficiency metrics.
- Revenues from customers (US$ in millions)
- There is a consistent upward trend in revenues over the observed period. Starting at approximately $267.9 billion in 2020, revenues increased each year, reaching around $370.7 billion by 2024. This represents a cumulative growth of roughly 38.4% over five years, indicating effective business expansion or increased market demand.
- Total assets (US$ in millions)
- The total assets show minor fluctuations but generally maintain an upward trajectory. Starting at about $230.7 billion in 2020, the asset base slightly decreased to approximately $228.3 billion in 2022 but rebounded significantly to reach $253.2 billion in 2024. The overall increase of about 9.7% suggests incremental investment or acquisition activities that accompany revenue growth.
- Total asset turnover (ratio)
- This metric, which measures the efficiency of asset use in generating revenue, exhibits a clear improving trend. Beginning at 1.16 in 2020, it rises steadily to 1.46 in 2024. The consistent increase in asset turnover indicates enhanced operational efficiency, with the company generating more revenue per dollar of assets over time.
In summary, the company demonstrates robust revenue growth supported by a moderately expanding asset base. The improvement in asset turnover ratio highlights increasing operational efficiency, implying effective management of assets in relation to the growth in revenues.
Equity Turnover
CVS Health Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from customers | 370,656) | 356,623) | 321,629) | 290,912) | 267,908) | |
| Total CVS Health shareholders’ equity | 75,560) | 76,461) | 71,015) | 75,075) | 69,389) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 4.91 | 4.66 | 4.53 | 3.87 | 3.86 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.88 | 1.04 | 1.19 | 1.20 | 1.06 | |
| Elevance Health Inc. | 4.24 | 4.33 | 4.29 | 3.80 | 3.64 | |
| Intuitive Surgical Inc. | 0.51 | 0.54 | 0.56 | 0.48 | 0.45 | |
| Medtronic PLC | 0.64 | 0.61 | 0.60 | 0.59 | 0.57 | |
| UnitedHealth Group Inc. | 4.26 | 4.14 | 4.14 | 3.98 | 3.90 | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 3.16 | 3.16 | 3.09 | 2.81 | 2.73 | |
| Equity Turnover, Industry | ||||||
| Health Care | 2.10 | 2.00 | 1.97 | 1.91 | 1.89 | |
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
Equity turnover = Revenues from customers ÷ Total CVS Health shareholders’ equity
= 370,656 ÷ 75,560 = 4.91
2 Click competitor name to see calculations.
The analysis of the available financial data over five years reveals a consistent upward trajectory in revenues, indicating the company's growth in its core business operations. The revenues increased steadily from approximately US$267.9 billion in 2020 to US$370.7 billion by 2024, demonstrating a robust expansion exceeding US$100 billion over the period.
In contrast, the total shareholders' equity presented fluctuations during the same period. After a rise from roughly US$69.4 billion in 2020 to US$75.1 billion in 2021, equity declined to about US$71.0 billion in 2022, followed by a recovery peaking at around US$76.5 billion in 2023, but then slightly decreased to US$75.6 billion in 2024. This pattern suggests some variability in retained earnings or other equity components, possibly influenced by dividends, share repurchases, or other equity-related transactions.
The equity turnover ratio, which measures how efficiently the equity is used to generate revenues, shows a positive and improving trend. Beginning at 3.86 in 2020, it slightly increased in 2021 to 3.87, followed by a more significant rise to 4.53 in 2022, then continued to grow to 4.66 in 2023 and further to 4.91 in 2024. This consistent increase implies enhanced utilization of equity capital to drive revenue growth, reflecting operational efficiency improvements or effective capital management.
- Revenue Trends
- Steady and significant growth year-over-year, culminating in a total increase of approximately 38% from 2020 to 2024.
- Shareholders' Equity
- Fluctuates with a peak in 2023, but overall relatively stable with minor variations across years, indicating periodic adjustments in equity components.
- Equity Turnover Ratio
- Shows continuous improvement, indicating more efficient use of equity capital to generate increased revenues.