CVS Health Corp (CVS)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 249,728,000 | 251,306,000 | 250,071,000 | 239,330,000 | 228,275,000 | 231,212,000 | 230,279,000 | 232,873,000 | 232,999,000 | 234,891,000 | 231,164,000 | 229,606,000 | 230,715,000 | 232,898,000 | 235,495,000 | 230,639,000 | 222,449,000 | 220,113,000 | 218,904,000 | 219,768,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 63,864,000 | 62,614,000 | 61,282,000 | 59,686,000 |
| Financial leverage ratio | 3.27 | 3.38 | 3.44 | 3.35 | 3.19 | 3.27 | 3.06 | 3.15 | 3.10 | 3.16 | 3.16 | 3.24 | 3.32 | 3.38 | 3.46 | 3.54 | 3.48 | 3.52 | 3.57 | 3.68 |
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 shown some variability over the past few quarters, ranging from 3.06 to 3.44.
The ratio indicates that the company relies more on debt financing rather than equity to fund its operations and investments. A higher leverage ratio suggests a higher level of financial risk due to the increased reliance on debt, which can potentially lead to higher interest expenses and financial obligations.
The fluctuations in the financial leverage ratio may reflect changes in the company's capital structure, including the issuance or repayment of debt, as well as changes in the profitability and financial performance of the business.
Overall, investors and stakeholders should closely monitor CVS Health Corp's financial leverage ratio to assess the company's risk level and financial health, especially in light of changing market conditions and economic factors.
Peer comparison
Dec 31, 2023