CVS Health Corp (CVS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,530,000 | 9,556,000 | 12,432,000 | 12,630,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 63,481,000 | 65,735,000 |
| 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 |
| Return on total capital | 11.29% | 12.75% | 16.59% | 17.07% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,530,000K ÷ ($—K + $75,560,000K)
= 11.29%
CVS Health Corp's return on total capital has exhibited some fluctuations over the past few years. The ratio has shown a generally upward trend from March 2020 to September 2023, reaching a peak of 18.71% in September 2023. However, there was a noticeable decline in the ratio in the subsequent quarters, dropping to 11.29% by December 2024.
Overall, CVS Health Corp's return on total capital performance has been relatively strong, with the ratio mostly staying above 10% during the period under review. It is crucial for investors and stakeholders to monitor this metric closely to assess the company's efficiency in generating returns from its total capital employed. Further analysis of the company's financial health and operational efficiency is recommended to gain a comprehensive understanding of its performance.
Peer comparison
Dec 31, 2024