CVS Health Corp (CVS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 | 0.27 | 0.29 | 0.29 | 0.29 | 0.31 | 0.31 |
| 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 | 0.48 | 0.50 | 0.50 | 0.51 | 0.52 | 0.53 |
| 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 | 0.93 | 1.01 | 1.01 | 1.03 | 1.09 | 1.14 |
| 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 |
Solvency ratios provide insight into a company's ability to meet its long-term debt obligations. Looking at the solvency ratios of CVS Health Corp over the past eight quarters, we observe the following trends:
1. Debt-to-assets ratio has remained relatively stable, ranging from 0.23 to 0.26. This indicates that CVS Health Corp finances a moderate portion of its assets with debt.
2. Debt-to-capital ratio has also maintained consistency, hovering around 0.42 to 0.47. This suggests that CVS Health Corp relies on debt for around 42% to 47% of its total capital, which includes both debt and equity.
3. Debt-to-equity ratio has shown some fluctuation, moving between 0.74 to 0.88. This ratio reveals the extent to which the company's operations are financed by debt compared to equity. The recent increase in this ratio may indicate a higher reliance on debt funding relative to shareholder equity.
4. Financial leverage ratio has displayed variability, ranging from 3.06 to 3.44. This ratio reflects the proportion of a company's assets that are financed by debt, highlighting CVS Health Corp's financial risk and leverage position. The upward trend in this ratio suggests an increase in financial risk and potential for higher financial leverage.
Overall, while the debt ratios of CVS Health Corp have remained relatively stable over the past eight quarters, the upward trend in the debt-to-equity ratio and financial leverage ratio may indicate an increasing reliance on debt financing which could potentially impact the company's financial stability and risk profile in the future. It would be prudent to closely monitor these solvency ratios to assess CVS Health Corp's long-term financial health and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.19 | 5.52 | 2.64 | 3.40 | 3.45 | 2.81 | 5.56 | 5.30 | 5.17 | 4.91 | 4.60 | 4.51 | 4.35 | 4.67 | 4.76 | 4.30 | 3.97 | 3.23 | 3.21 | 1.65 |
Based on the provided data, the interest coverage ratio of CVS Health Corp has shown a consistent upward trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations using its operating income.
CVS Health Corp's interest coverage ratio has ranged from 5.49 to 7.16 over the past eight quarters, indicating a relatively strong ability to cover its interest expenses. The ratio has generally been above 6, reflecting a healthy financial position and a comfortable buffer to handle interest payments.
The increasing trend in the interest coverage ratio implies that CVS Health Corp's operating income has been growing at a faster pace compared to its interest expenses, which is a positive sign for investors and creditors. It suggests that the company has sufficient earnings to cover its interest obligations and is at lower risk of defaulting on its debt.
Overall, the consistent improvement in CVS Health Corp's interest coverage ratio demonstrates its ability to manage its debt effectively and indicates a stable financial position.