CVS Health Corp (CVS)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 6,634,000 | 4,468,000 | 4,328,000 | -171,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 63,864,000 | 62,614,000 | 61,282,000 | 59,686,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $8,344,000K ÷ $76,461,000K
= 10.91%
To analyze CVS Health Corp's return on equity (ROE) performance based on the provided data, we can observe the following trends:
1. Overall, CVS Health Corp's ROE has experienced fluctuations over the last eight quarters, ranging from 4.02% to 11.57%. This indicates some variability in the company's ability to generate profit from shareholders' equity.
2. In the most recent quarter (Q4 2023), CVS Health Corp's ROE was 10.91%, showing a slight decrease from the previous quarter but remaining above 10%. This suggests that the company continues to efficiently utilize its equity to generate returns for its shareholders.
3. The highest ROE recorded during this period was 11.57% in Q3 2023, indicating a strong performance in that particular quarter.
4. Conversely, the lowest ROE of 4.02% was observed in Q2 2023, highlighting a temporary decrease in the company's profitability relative to its equity base.
5. It is worth noting that the ROE values in Q1 and Q4 of 2022 were relatively consistent, hovering around 5.84% and 5.57% respectively, suggesting stability in the company's return on equity during that period.
In conclusion, while CVS Health Corp's ROE has shown fluctuations over the past two years, the company has demonstrated the ability to maintain relatively strong returns on shareholders' equity. Monitoring ROE trends can provide valuable insights into the company's financial performance and efficiency in utilizing equity to drive profitability.
Peer comparison
Dec 31, 2023