CVS Health Corp (CVS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,344,000 | 4,311,000 | 7,910,000 | 7,179,000 | 6,634,000 |
| Total stockholders’ equity | US$ in thousands | 76,461,000 | 71,469,000 | 75,075,000 | 69,389,000 | 63,864,000 |
| ROE | 10.91% | 6.03% | 10.54% | 10.35% | 10.39% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $8,344,000K ÷ $76,461,000K
= 10.91%
CVS Health Corp's return on equity (ROE) has shown some fluctuations over the past five years. In 2023, the ROE increased to 10.91%, a significant improvement from the previous year's 5.84%. This indicates that the company generated a higher return for its shareholders in 2023 compared to 2022.
When compared to 2021, the ROE decreased slightly from 10.54% to 10.91% in 2023. Despite this minor dip, CVS Health Corp's ROE remained relatively stable around the 10% mark in recent years. This suggests that the company has been consistently efficient in utilizing shareholders' equity to generate profits.
It is worth noting that the ROE in 2023 is slightly higher than the ROE in 2019 and 2020, indicating that CVS Health Corp has improved its profitability and efficiency over the years. Overall, the trend in ROE for CVS Health Corp shows positive performance, with a notable increase in 2023, reflecting the company's ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2023