CVS Health Corp (CVS)
Debt-to-equity 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-equity 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 | 0.93 | 1.01 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $75,560,000K
= 0.00
The debt-to-equity ratio for CVS Health Corp has shown a significant decrease over the years based on the provided data. As of March 31, 2020, the ratio stood at 1.01, indicating that the company had more debt than equity. However, in the following quarters, the debt-to-equity ratio steadily declined, reaching 0.00 by December 31, 2020, and maintaining at that level throughout the following years.
A debt-to-equity ratio of 0.00 suggests that CVS Health Corp had no debt on its balance sheet in relation to its equity during the periods covered in the data. This can be seen as a positive indicator, indicating that the company has a strong financial position with low financial leverage and potentially lower financial risk. It also implies that the company may have been using more equity financing rather than debt financing to fund its operations and investments during the specified periods.
Overall, the decreasing trend in the debt-to-equity ratio for CVS Health Corp reflects a conservative approach to capital structure management, which may enhance the company's financial stability and resilience in the long term. However, it is important to note that a zero debt-to-equity ratio may not always be ideal as some level of debt can be beneficial for leveraging growth opportunities and optimizing capital structure.
Peer comparison
Dec 31, 2024