CVS Health Corp (CVS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 75,560,000 | 74,944,000 | 74,930,000 | 73,968,000 | 76,461,000 | 74,337,000 | 72,726,000 | 71,382,000 | 71,469,000 | 70,683,000 | 75,184,000 | 73,830,000 | 75,075,000 | 74,308,000 | 73,244,000 | 70,850,000 | 69,389,000 | 68,807,000 | 68,022,000 | 65,140,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,614,000K ÷ $75,560,000K
= 6.11%
The return on equity (ROE) of CVS Health Corp has displayed some fluctuations over the past few years. From March 31, 2020, to June 30, 2022, the ROE generally remained in the range of 9% to 12%, indicating a moderate level of profitability in relation to shareholders' equity.
However, starting from September 30, 2022, there was a notable decline in ROE, dropping to as low as 3.85% by June 30, 2023. This significant decrease may suggest potential challenges or inefficiencies impacting the company's profitability and ability to generate returns for shareholders during that period.
Despite this dip, there was a notable recovery in the ROE by September 30, 2023, reaching 11.39%, followed by relatively stable figures in the range of 6% to 10% up to December 31, 2024. This recovery and stabilization indicate an improvement in the company's ability to generate profits relative to shareholders' equity.
In conclusion, the trend in CVS Health Corp's ROE reflects a mix of fluctuations and recovery periods, suggesting varying levels of profitability and efficiency in utilizing shareholders' equity during the analyzed timeframe. Continued monitoring of the ROE will be essential to assess the company's financial performance and value creation for shareholders moving forward.
Peer comparison
Dec 31, 2024