CVS Health Corp (CVS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -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% | 53.71% | 51.35% | 48.08% | 43.99% |
| Operating profit margin | 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% | 4.67% | 4.00% | 4.15% | 2.24% |
| Pretax margin | 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% | 3.51% | 2.77% | 2.88% | 0.89% |
| Net profit margin | 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% | 2.58% | 1.83% | 1.91% | -0.08% |
The profitability ratios of CVS Health Corp indicate the company's ability to generate profits relative to its revenues. The gross profit margin has shown relatively stable performance over the past eight quarters, hovering around 39%, indicating efficient cost management in production and sales.
The operating profit margin has also been consistent, ranging between 4% and 5%, demonstrating the company's effective control over operating expenses and ability to generate profits from core business activities.
The pretax margin has varied more significantly, with a notable decline in Q2 2023 compared to earlier quarters. This suggests fluctuations in non-operating expenses or income, impacting the company's profitability before taxes.
The net profit margin, representing the bottom line profitability, has also shown variability, reflecting changes in tax expenses and other one-time factors impacting net income. Despite some fluctuations, the company has maintained positive net profit margins above 1% throughout the analyzed period, with Q4 2023 returning a net profit margin of 2.33%.
Overall, CVS Health Corp has demonstrated stable profitability levels in terms of gross profit margin and operating profit margin, while experiencing some variations in pretax margin and net profit margin over the past eight quarters.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 5.39% | 4.44% | 4.30% | 2.15% |
| Return on assets (ROA) | 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% | 2.98% | 2.03% | 1.98% | -0.08% |
| Return on total capital | 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% | 9.36% | 7.73% | 7.40% | 3.72% |
| Return on equity (ROE) | 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% | 10.39% | 7.14% | 7.06% | -0.29% |
Based on the profitability ratios of CVS Health Corp, we can observe the following trends:
1. Operating return on assets (Operating ROA) has been relatively stable over the quarters, ranging from 5.85% to 6.85%. This metric indicates that the company is generating operating income efficiently relative to its total assets.
2. Return on assets (ROA) has shown some fluctuations, with a peak of 3.55% in Q2 2022 and a low of 1.17% in Q2 2023. This ratio reflects the overall profitability of the company's assets, and the variability may suggest changes in the company's asset utilization or profitability levels.
3. Return on total capital has also displayed variations, ranging from 10.57% to 13.05%. This metric demonstrates how well the company is generating returns on both debt and equity investments, indicating a relatively stable performance over the quarters.
4. Return on equity (ROE) has shown fluctuations as well, with a high of 11.57% in Q3 2023 and a low of 4.02% in Q2 2023. ROE reflects the company's ability to generate profits from shareholders' equity, and the variability may point to shifts in the company's financial leverage and net income.
Overall, while some profitability ratios have displayed fluctuations, CVS Health Corp has maintained relatively solid performance in generating returns on its assets, capital, and equity. Continued monitoring of these ratios will be essential to assess the company's financial health and profitability going forward.