CVS Health Corp (CVS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -3.35% | -36.01% | -21.91% | -8.38% | -10.34% | -3.01% | -5.03% | -6.18% | -7.01% | -3.31% | -3.41% | -4.31% | -5.53% | -0.71% | -1.56% | -3.08% | -3.79% | 53.59% | 53.35% | 53.47% |
| Operating profit margin | 2.28% | 2.58% | 3.41% | 3.48% | 3.84% | 3.97% | 1.83% | 2.31% | 2.40% | 2.07% | 4.39% | 4.39% | 4.52% | 4.73% | 4.91% | 5.18% | 5.18% | 5.42% | 5.35% | 4.87% |
| Pretax margin | 1.66% | 1.83% | 2.65% | 2.73% | 3.12% | 3.27% | 1.16% | 1.66% | 1.74% | 1.35% | 3.53% | 3.49% | 3.57% | 3.53% | 3.49% | 3.67% | 3.63% | 4.09% | 4.24% | 3.76% |
| Net profit margin | 1.24% | 1.36% | 1.98% | 2.03% | 2.33% | 2.44% | 0.83% | 1.19% | 1.29% | 1.04% | 2.69% | 2.68% | 2.71% | 2.66% | 2.59% | 2.73% | 2.67% | 2.99% | 3.13% | 2.76% |
The profitability ratios of CVS Health Corp show a varying trend over the fiscal periods under consideration.
- Gross profit margin remained relatively stable around 53% from March 2020 to June 2022 but then took a sharp decline to negative values, indicating challenges in maintaining a profitable gross margin.
- Operating profit margin started at around 5% in March 2020, dipped to the 1-2% range by September 2023, and slightly recovered to around 3% by the end of December 2024. This suggests fluctuations in operational efficiency and cost management.
- Pretax margin followed a similar pattern as the operating profit margin, declining from around 4% in June 2020 to below 2% by the end of December 2024, highlighting the impact of various factors on the company's profitability before accounting for taxes.
- Net profit margin, reflecting the final profitability after all expenses are considered, also experienced a downward trend, falling from 3% in June 2020 to approximately 1% by December 2024. This indicates challenges in generating net earnings relative to total revenue.
Overall, the declining trend in profit margins from around 2022 onwards suggests that CVS Health Corp faced increasing cost pressures and operational challenges during the latter part of the period in question, impacting its overall profitability levels.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.82% | 1.99% | 2.85% | 2.93% | 3.34% | 3.37% | 1.12% | 1.64% | 1.82% | 1.42% | 3.60% | 3.45% | 3.39% | 3.23% | 3.12% | 3.22% | 3.11% | 3.41% | 3.51% | 3.13% |
| Return on total capital | 11.29% | 12.75% | 16.59% | 17.07% | 18.06% | 18.71% | 8.68% | 10.89% | 11.05% | 9.32% | 17.60% | 17.47% | 17.23% | 17.01% | 16.96% | 18.03% | 18.24% | 20.11% | 10.78% | 9.80% |
| Return on equity (ROE) | 6.11% | 6.69% | 9.60% | 9.90% | 10.91% | 11.39% | 3.85% | 5.51% | 5.81% | 4.64% | 11.02% | 10.89% | 10.54% | 10.20% | 9.83% | 10.44% | 10.35% | 11.56% | 12.14% | 11.08% |
CVS Health Corp's profitability ratios provide insights into the company's ability to generate returns for its investors and efficiently utilize its assets.
1. Operating Return on Assets (Operating ROA) has shown some fluctuation over the quarters, ranging from a high of 6.19% in September 2020 to a low of 2.48% in June 2023. This ratio indicates the company's ability to generate operating profits from its asset base, and the decreasing trend in recent quarters suggests a potential decline in operational efficiency.
2. Return on Assets (ROA) reflects the company's overall profitability relative to its total assets. The trend shows a decrease in ROA from a peak of 3.60% in June 2022 to 1.82% by December 2024. This indicates a declining ability of CVS Health Corp to generate profits from its assets over the quarters.
3. Return on Total Capital measures the return earned on the total invested capital, including debt and equity. The ratio fluctuated with a peak of 20.11% in September 2020 and a low of 8.68% in June 2023. Although the ratio has been somewhat volatile, it generally remained above 10% in most quarters, indicating a reasonable return on the capital employed.
4. Return on Equity (ROE) demonstrates how effectively the company is generating profits from shareholders' equity. The ratio ranged from a high of 12.14% in June 2020 to a low of 3.85% in June 2023. The decreasing trend indicates a declining ability to generate returns for equity holders over the quarters.
Overall, the profitability ratios of CVS Health Corp show a mix of performance levels over the quarters, with some indicating a decline in profitability efficiency. Investors and analysts may want to further investigate the factors driving these trends to assess the company's financial health and long-term sustainability.