CVS Health Corp (CVS)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,614,000 | 5,016,000 | 7,190,000 | 7,321,000 | 8,344,000 | 8,470,000 | 2,803,000 | 3,931,000 | 4,149,000 | 3,283,000 | 8,287,000 | 8,041,000 | 7,910,000 | 7,577,000 | 7,203,000 | 7,395,000 | 7,179,000 | 7,953,000 | 8,259,000 | 7,220,000 |
| 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $4,614,000K ÷ $253,215,000K
= 1.82%
ROA, or Return on Assets, is a financial ratio that indicates how efficiently a company is able to generate profit from its assets. It is calculated by dividing the company's net income by its average total assets.
Analyzing the ROA trend of CVS Health Corp from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio, ranging from a low of 1.12% on June 30, 2023, to a high of 3.60% on June 30, 2022.
The company's ROA generally hovered around the 3% mark, indicating that CVS Health Corp was able to generate approximately $0.03 in profit for every dollar of assets it held during this period.
Notable fluctuations are seen in the latter part of 2022 and 2023 when the ROA dropped significantly to below 2%. However, the ratio recovered to 3.37% on September 30, 2023, and 3.34% on December 31, 2023.
The decline in ROA observed in the latter half of 2024, reaching a low of 1.82% on December 31, 2024, may signal potential challenges in asset utilization or profit generation for CVS Health Corp during that period.
Overall, a consistent analysis of CVS Health Corp's ROA over the reviewed period suggests fluctuations in the company's ability to effectively generate profit from its assets. Further investigation into the underlying factors driving these fluctuations would provide more insight into the company's financial performance and efficiency in asset utilization.
Peer comparison
Dec 31, 2024