Analysis of Reportable Segments
CVS Health Corp. operates in 3 segments: Health Care Benefits; Health Services; and Pharmacy & Consumer Wellness.
Segment Profit Margin
CVS Health Corp., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Health Care Benefits | 5.32% | 6.97% | 6.27% | — | — |
| Health Services | 3.91% | 4.00% | 4.22% | — | — |
| Pharmacy & Consumer Wellness | 5.11% | 6.01% | 7.15% | — | — |
Based on: 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), 10-K (reporting date: 2019-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Health Care Benefits | Health Care Benefits segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Health Services | Health Services segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Pharmacy & Consumer Wellness | Pharmacy & Consumer Wellness segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Health Care Benefits
CVS Health Corp.; Health Care Benefits; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted operating income (loss) | 5,577) | 6,338) | 5,110) | —) | —) |
| Revenues | 104,881) | 90,874) | 81,533) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 5.32% | 6.97% | 6.27% | — | — |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Adjusted operating income (loss) ÷ Revenues
= 100 × 5,577 ÷ 104,881 = 5.32%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Health Care Benefits | Health Care Benefits segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: Health Services
CVS Health Corp.; Health Services; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted operating income (loss) | 7,312) | 6,781) | 6,492) | —) | —) |
| Revenues | 186,844) | 169,576) | 153,892) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 3.91% | 4.00% | 4.22% | — | — |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Adjusted operating income (loss) ÷ Revenues
= 100 × 7,312 ÷ 186,844 = 3.91%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Health Services | Health Services segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Pharmacy & Consumer Wellness
CVS Health Corp.; Pharmacy & Consumer Wellness; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted operating income (loss) | 5,963) | 6,531) | 7,260) | —) | —) |
| Revenues | 116,768) | 108,640) | 101,603) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 5.11% | 6.01% | 7.15% | — | — |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Adjusted operating income (loss) ÷ Revenues
= 100 × 5,963 ÷ 116,768 = 5.11%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmacy & Consumer Wellness | Pharmacy & Consumer Wellness segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Revenues
CVS Health Corp., revenues by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Health Care Benefits | 104,881) | 90,874) | 81,533) | —) | —) |
| Health Services | 186,844) | 169,576) | 153,892) | —) | —) |
| Pharmacy & Consumer Wellness | 116,768) | 108,640) | 101,603) | —) | —) |
| Corporate/Other | 57) | 124) | 125) | —) | —) |
| Intersegment eliminations | (51,927) | (47,585) | (46,241) | —) | —) |
| Consolidated total | 356,623) | 321,629) | 290,912) | —) | —) |
Based on: 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), 10-K (reporting date: 2019-12-31).
Adjusted operating income (loss)
CVS Health Corp., adjusted operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Health Care Benefits | 5,577) | 6,338) | 5,110) | —) | —) |
| Health Services | 7,312) | 6,781) | 6,492) | —) | —) |
| Pharmacy & Consumer Wellness | 5,963) | 6,531) | 7,260) | —) | —) |
| Corporate/Other | (1,318) | (1,613) | (1,635) | —) | —) |
| Consolidated total | 17,534) | 18,037) | 17,227) | —) | —) |
Based on: 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), 10-K (reporting date: 2019-12-31).