CVS Health Corp (CVS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 8,516,000 | 9,521,000 | 12,379,000 | 12,568,000 | 13,743,000 | 13,821,000 | 6,212,000 | 7,647,000 | 7,746,000 | 6,524,000 | 13,504,000 | 13,161,000 | 13,193,000 | 13,488,000 | 13,676,000 | 14,030,000 | 13,911,000 | 14,424,000 | 14,103,000 | 12,755,000 |
| Total assets | US$ in thousands | 253,215,000 | 252,427,000 | 252,481,000 | 249,743,000 | 249,728,000 | 251,306,000 | 250,071,000 | 239,330,000 | 228,275,000 | 231,212,000 | 230,279,000 | 232,873,000 | 232,999,000 | 234,891,000 | 231,164,000 | 229,606,000 | 230,715,000 | 232,898,000 | 235,495,000 | 230,639,000 |
| Operating ROA | 3.36% | 3.77% | 4.90% | 5.03% | 5.50% | 5.50% | 2.48% | 3.20% | 3.39% | 2.82% | 5.86% | 5.65% | 5.66% | 5.74% | 5.92% | 6.11% | 6.03% | 6.19% | 5.99% | 5.53% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $8,516,000K ÷ $253,215,000K
= 3.36%
CVS Health Corp's operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating ROA ranged from a high of 6.19% in September 30, 2020, to a low of 2.48% in June 30, 2023. Overall, the trend in operating ROA indicates some variability, with peaks and troughs observed in different quarters.
The operating ROA experienced a gradual decline from earlier years, starting with a decrease from 6.19% in September 30, 2020, to 2.82% in September 30, 2022. Subsequently, there was a slight recovery in the following quarters, although the metric did not reach the initial levels observed in 2020 and early 2021.
It is important to note that a high operating ROA indicates that the company is generating more operating income from its assets, reflecting efficiency in its operations. Conversely, a low operating ROA may suggest inefficiencies or challenges in utilizing assets to generate profits.
The recent stability in operating ROA around 5-6% from March 31, 2023, to June 30, 2024, may indicate efforts by CVS Health Corp to maintain a consistent level of profitability relative to its asset base. However, a slight decline was observed in the most recent quarter of December 31, 2024, with the operating ROA dropping to 3.36%. This change may warrant further investigation into the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2024