CVS Health Corp (CVS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 253,215,000 | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 |
| Total stockholders’ equity | US$ in thousands | 75,560,000 | 76,461,000 | 71,469,000 | 75,075,000 | 69,389,000 |
| Financial leverage ratio | 3.35 | 3.27 | 3.19 | 3.10 | 3.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $253,215,000K ÷ $75,560,000K
= 3.35
The financial leverage ratio of CVS Health Corp has shown a declining trend from 3.32 in December 2020 to 3.10 in December 2021. However, it increased slightly to 3.19 in December 2022, followed by a further rise to 3.27 in December 2023, and then to 3.35 in December 2024. Overall, the financial leverage ratio indicates that the company has been relying more on debt financing to fund its operations and investments, with the ratio consistently above 3.0 in the recent years. This suggests that CVS Health Corp has a moderate level of financial leverage, which indicates a significant portion of its assets is funded by debt rather than equity. Investors and creditors may closely monitor this ratio as it reflects the company's risk and solvency position.
Peer comparison
Dec 31, 2024