CVS Health Corp (CVS)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,614,000 | 8,344,000 | 4,311,000 | 7,910,000 | 7,179,000 |
| Revenue | US$ in thousands | 372,809,000 | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 |
| Net profit margin | 1.24% | 2.33% | 1.34% | 2.71% | 2.67% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $4,614,000K ÷ $372,809,000K
= 1.24%
To analyze the net profit margin of CVS Health Corp for the years 2020 to 2024, we observe the following percentages:
- In December 2020, the net profit margin was 2.67%. This indicates that for every dollar of revenue generated, the company retained $0.0267 as profit.
- By December 2021, the net profit margin increased slightly to 2.71%, showcasing a marginal improvement in profitability compared to the previous year.
- However, in December 2022, there was a significant decline in the net profit margin to 1.34%, which could suggest challenges or inefficiencies impacting the company's ability to convert revenue into profit.
- The following year, by December 2023, there was a notable recovery in the net profit margin to 2.33%, hinting at potential strategic adjustments or improved performance.
- Lastly, in December 2024, the net profit margin decreased to 1.24%, indicating a decline in profitability compared to the previous year, which may raise concerns about the company's cost structure or revenue generation.
In summary, the analysis of CVS Health Corp's net profit margin over the specified five-year period demonstrates fluctuating levels of profitability, with some years showing improvements while others displaying declines. Continued monitoring of these metrics will be essential to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024