CVS Health Corp (CVS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 249,728,000 | 228,275,000 | 232,999,000 | 230,715,000 | 222,449,000 |
| Total stockholders’ equity | US$ in thousands | 76,461,000 | 71,469,000 | 75,075,000 | 69,389,000 | 63,864,000 |
| Financial leverage ratio | 3.27 | 3.19 | 3.10 | 3.32 | 3.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $249,728,000K ÷ $76,461,000K
= 3.27
The financial leverage ratio of CVS Health Corp has exhibited some fluctuations over the past five years. The ratio has ranged from 3.10 to 3.48, with the highest value recorded in 2019 and the lowest in 2021. The ratio peaked in 2019 at 3.48, indicating higher financial leverage at that time, which suggests that the company relied more on debt to finance its operations and investments. In contrast, the lowest ratio in 2021 suggests a decrease in the proportion of debt in the company's capital structure.
Overall, the trend shows some volatility in the financial leverage ratio, indicating varying levels of reliance on debt financing over the years. Investors and analysts may need to further explore the factors driving these changes to assess the company's capital structure strategy and risk profile.
Peer comparison
Dec 31, 2023