CVS Health Corp (CVS)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -68,176,000 | -36,630,000 | -22,599,000 | -16,144,000 | -10,182,000 |
| Revenue | US$ in thousands | 372,809,000 | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 |
| Gross profit margin | -18.29% | -10.24% | -7.01% | -5.53% | -3.79% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-68,176,000K ÷ $372,809,000K
= -18.29%
CVS Health Corp's gross profit margin has been declining over the past five years. It stood at -3.79% as of December 31, 2020, and has since decreased to -18.29% as of December 31, 2024. This negative trend indicates that the company's cost of goods sold is increasing at a faster rate than its revenue, leading to a decrease in profitability at the gross level. A declining gross profit margin may signal challenges in managing production or procurement costs, pricing strategies, or competitive pressures in the industry. CVS Health Corp should closely monitor this trend and take necessary actions to improve its cost structure and enhance overall profitability.
Peer comparison
Dec 31, 2024