CVS Health Corp (CVS)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.48 | 0.50 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $75,560,000K)
= 0.00
The debt-to-capital ratio of CVS Health Corp has experienced a declining trend over the past few years. As of March 31, 2020, the ratio stood at 0.50, indicating that 50% of the company's capital structure was funded by debt. However, this ratio decreased to 0.48 by June 30, 2020. Subsequently, from September 30, 2020, to December 31, 2024, the ratio remained at 0.00, suggesting that there was no debt in the company's capital structure during this period.
A debt-to-capital ratio of 0.00 typically indicates that a company is not relying on debt to fund its operations and investments. This could imply a conservative financial strategy or sufficient cash reserves to finance activities without the need for borrowing. However, it's important to note that while low debt levels can be advantageous in terms of financial stability and risk management, it may also limit the company's ability to leverage financial opportunities for growth or expansion.
Overall, the trend of decreasing debt-to-capital ratio indicates that CVS Health Corp has been reducing its reliance on debt financing over time, which could signal a financially sound and stable position for the company.
Peer comparison
Dec 31, 2024