CVS Health Corp (CVS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,807,000 | 13,909,000 | 6,316,000 | 7,775,000 | 7,899,000 | 6,591,000 | 13,234,000 | 12,895,000 | 12,935,000 | 12,639,000 | 12,423,000 | 12,774,000 | 12,655,000 | 13,834,000 | 14,173,000 | 12,827,000 | 12,035,000 | 9,802,000 | 9,494,000 | 4,749,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 63,481,000 | 65,735,000 | 64,699,000 | 64,206,000 | 66,941,000 | 67,888,000 |
| 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 |
| Return on total capital | 18.06% | 18.71% | 8.68% | 10.89% | 11.05% | 9.32% | 17.60% | 17.47% | 17.23% | 17.01% | 16.96% | 18.03% | 18.24% | 20.11% | 10.78% | 9.80% | 9.36% | 7.73% | 7.40% | 3.72% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,807,000K ÷ ($—K + $76,461,000K)
= 18.06%
To analyze CVS Health Corp's return on total capital over the past eight quarters, we observe a fluctuating trend. The return on total capital ranged from a low of 10.57% in Q4 2023 to a high of 13.05% in Q4 2022, showing some variability in performance. Overall, there seems to be a general downward trend in the return on total capital from Q4 2022 to Q4 2023. However, it is worth noting that the returns have mostly remained above 10%, indicating that CVS Health Corp has been able to generate a decent return on its invested capital during these periods. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's ability to efficiently utilize its total capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023