CVS Health Corp (CVS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,176,000 | 11,149,000 | 5,612,000 | 10,432,000 | 9,748,000 |
| Revenue | US$ in thousands | 372,809,000 | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 |
| Pretax margin | 1.66% | 3.12% | 1.74% | 3.57% | 3.63% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $6,176,000K ÷ $372,809,000K
= 1.66%
Based on the provided data, CVS Health Corp's pretax margin has shown some fluctuations over the years. The pretax margin represents the percentage of each dollar of revenue that the company retains as pre-tax profit after accounting for all expenses other than income taxes.
In December 2020, the pretax margin stood at 3.63%, indicating that CVS Health Corp retained $0.0363 in pretax profit for every dollar of revenue generated. The margin slightly decreased to 3.57% by December 2021.
However, there was a significant decrease in the pretax margin in December 2022, dropping to 1.74%. This decline suggests that the company's profitability relative to revenue decreased, possibly due to an increase in expenses or a decrease in revenue.
The pretax margin improved in December 2023, reaching 3.12%, indicating a rebound in profitability. Yet, there was another decrease in December 2024, with the pretax margin falling to 1.66%.
Overall, the fluctuations in CVS Health Corp's pretax margin show a somewhat inconsistent trend in profitability over the years. Further analysis would be needed to understand the factors driving these changes and assess the company's overall financial health.
Peer comparison
Dec 31, 2024