CVS Health Corp (CVS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,614,000 | 8,344,000 | 4,311,000 | 7,910,000 | 7,179,000 |
| Total assets | US$ in thousands | 253,215,000 | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 |
| ROA | 1.82% | 3.34% | 1.89% | 3.39% | 3.11% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,614,000K ÷ $253,215,000K
= 1.82%
The return on assets (ROA) of CVS Health Corp has shown some fluctuations over the past five years. As of December 31, 2020, the ROA stood at 3.11%, increasing slightly to 3.39% by December 31, 2021. However, there was a decrease in ROA to 1.89% by December 31, 2022, followed by a notable recovery to 3.34% by December 31, 2023. Subsequently, by December 31, 2024, the ROA decreased to 1.82%.
These fluctuations in ROA indicate varying levels of efficiency in generating profits from the company's assets over the years. The upward trend in 2021 and 2023 suggests improved asset utilization and profitability, whereas the decrease in 2022 and 2024 may raise concerns regarding the company's ability to generate profits relative to its total assets. Further analysis and comparison with industry peers would provide a clearer picture of CVS Health Corp's performance in utilizing its assets effectively to generate returns for its shareholders.
Peer comparison
Dec 31, 2024