CVS Health Corp (CVS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 64,699,000 |
| Total assets | US$ in thousands | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 | 222,449,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $249,728,000K
= 0.00
The debt-to-assets ratio of CVS Health Corp has been declining steadily over the past five years, which indicates an improving financial position in terms of leveraging debt to finance its assets. In 2023, the ratio stood at 0.25, a slight increase from the previous year's ratio of 0.23. This suggests that CVS Health Corp has a lower proportion of debt relative to its total assets, indicating a stronger ability to cover its debt obligations with its asset base.
The decreasing trend in the debt-to-assets ratio from 2020 to 2023 signifies a more conservative approach to debt management by CVS Health Corp, as the company has been reducing its reliance on debt to fund its operations and investments. This trend may be perceived positively by investors and creditors as it indicates improved financial stability and lower risk of default.
Overall, the declining debt-to-assets ratio of CVS Health Corp reflects a prudent financial strategy aimed at maintaining a healthy balance between debt and assets, which could enhance the company's long-term financial sustainability and resilience in challenging economic conditions.
Peer comparison
Dec 31, 2023