CVS Health Corp (CVS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 | 222,449,000 |
| Operating ROA | 5.50% | 3.48% | 5.66% | 6.03% | 5.39% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $13,743,000K ÷ $249,728,000K
= 5.50%
CVS Health Corp's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA decreased from 5.39% in 2019 to 6.03% in 2020, followed by a slight increase to 6.43% in 2021. However, the trend reversed in 2022, with a notable decrease to 7.05%. Subsequently, in 2023, the operating ROA decreased further to 5.85%.
This fluctuation in operating ROA indicates potential variations in CVS Health Corp's ability to generate profits from its operational assets over the years. The declining trend in recent years may suggest challenges in improving efficiency or profitability in utilizing its assets to generate operating income. Further analysis of the underlying factors driving these changes would be beneficial for a comprehensive evaluation of the company's operational performance and strategic decisions.
Peer comparison
Dec 31, 2023