CVS Health Corp (CVS)
Gross profit margin
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | -12,484,000 | -132,844,000 | -79,570,000 | -30,244,000 | -36,999,000 | -10,466,000 | -17,078,000 | -20,445,000 | -22,599,000 | -10,426,000 | -10,505,000 | -12,911,000 | -16,144,000 | -2,038,000 | -4,337,000 | -8,360,000 | -10,182,000 | 142,565,000 | 140,739,000 | 140,041,000 |
| Revenue (ttm) | US$ in thousands | 372,809,000 | 368,912,000 | 363,248,000 | 360,935,000 | 357,776,000 | 347,809,000 | 339,204,000 | 330,919,000 | 322,467,000 | 315,225,000 | 307,860,000 | 299,840,000 | 292,111,000 | 285,061,000 | 278,323,000 | 271,048,000 | 268,706,000 | 266,041,000 | 263,795,000 | 261,885,000 |
| Gross profit margin | -3.35% | -36.01% | -21.91% | -8.38% | -10.34% | -3.01% | -5.03% | -6.18% | -7.01% | -3.31% | -3.41% | -4.31% | -5.53% | -0.71% | -1.56% | -3.08% | -3.79% | 53.59% | 53.35% | 53.47% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-12,484,000K ÷ $372,809,000K
= -3.35%
CVS Health Corp's gross profit margin has experienced significant fluctuations over the analyzed period. The margin started positively above 50% in 2020 but deteriorated rapidly to negative levels by the end of the same year and continued to decline through 2022. The company saw a slight improvement in the margin in the first half of 2023 but it remained negative. However, in the latter part of 2023 and into 2024, there were further declines with margins hitting double-digit negative percentages.
The negative gross profit margin indicates that CVS Health Corp is generating gross profit at a loss, meaning the cost of goods sold exceeds the revenue from sales. This could be a result of increased costs, lower sales prices, or inventory write-downs among other factors. Such consistent negative margins raise concerns about the company's ability to effectively manage its cost structure and pricing strategies. Further analysis of the underlying reasons for these fluctuations and the company's operational efficiency is necessary to determine the long-term implications for CVS Health Corp's financial performance and overall business sustainability.
Peer comparison
Dec 31, 2024