CVS Health Corp (CVS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,516,000 | 13,743,000 | 7,954,000 | 13,193,000 | 13,911,000 |
| Total assets | US$ in thousands | 253,215,000 | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 |
| Operating ROA | 3.36% | 5.50% | 3.48% | 5.66% | 6.03% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $8,516,000K ÷ $253,215,000K
= 3.36%
The operating return on assets (ROA) of CVS Health Corp has shown fluctuations over the years. In December 31, 2020, the operating ROA was at 6.03%, indicating that the company generated $6.03 in operating income for every $100 of assets it owned. However, by December 31, 2022, the operating ROA had decreased significantly to 3.48%, suggesting a decline in the company's operating efficiency in utilizing its assets to generate profits.
Interestingly, there was a rebound in the operating ROA by December 31, 2023, reaching 5.50%, indicating an improvement in the company's operational performance in that year. Nonetheless, by December 31, 2024, the operating ROA dropped again to 3.36%, which may raise concerns about the company's ability to effectively generate profits from its assets.
Overall, the fluctuating trend in CVS Health Corp's operating return on assets highlights the importance of closely monitoring the company's operational efficiency and asset utilization to ensure sustained profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2024