CVS Health Corp (CVS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 13,743,000 | 7,954,000 | 13,193,000 | 13,911,000 | 11,987,000 |
| Revenue | US$ in thousands | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 | 256,776,000 |
| Operating profit margin | 3.84% | 2.47% | 4.52% | 5.18% | 4.67% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $13,743,000K ÷ $357,776,000K
= 3.84%
The operating profit margin of CVS Health Corp has shown a fluctuating trend over the past five years. In 2023, the operating profit margin decreased to 4.08% from 4.99% in 2022, representing a decline in profitability. This decrease continues a downward trajectory from the peak margin of 5.18% in 2020. Despite this, the company's operating profit margin remains above the 2019 level of 4.67%.
The declining trend in operating profit margin may indicate challenges in managing operating expenses or pricing pressures affecting profitability. It is essential for CVS Health Corp to closely monitor and address factors impacting its operating profit margin to ensure sustainable financial performance and future growth.
Peer comparison
Dec 31, 2023