CVS Health Corp (CVS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.27 | 0.29 |
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.48 | 0.50 |
| 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 |
| Financial leverage ratio | 3.35 | 3.37 | 3.37 | 3.38 | 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 |
The solvency ratios of CVS Health Corp demonstrate a stable financial position with a low level of debt in relation to its assets, capital, and equity over the period reported.
The Debt-to-Assets ratio declined consistently from 0.29 in March 2020 to 0.00 by December 2024, indicating that the company's debt obligations formed a smaller proportion of its total assets, which is a positive indicator of financial health and risk management.
Similarly, the Debt-to-Capital ratio reduced from 0.50 in March 2020 to 0.00 by December 2024, illustrating the company's ability to finance its operations with capital rather than debt, reducing financial risk.
The Debt-to-Equity ratio decreased from 1.01 in March 2020 to 0.00 by December 2024, showing that the company's reliance on debt funding relative to equity decreased significantly, reflecting a stronger financial position.
The Financial Leverage ratio experienced fluctuations but generally trended downwards, indicating decreasing reliance on debt to finance operations over the reporting period. This trend is favorable as it suggests improved financial stability and reduced financial risk for the company.
Overall, the solvency ratios of CVS Health Corp demonstrate prudent financial management, reduced reliance on debt, and a strengthened financial position over the years analyzed.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.88 | 3.31 | 4.39 | 4.54 | 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 |
The interest coverage ratio for CVS Health Corp has shown some fluctuations over the past few years. The ratio has generally been above 4, indicating that the company has been able to comfortably cover its interest expenses with its earnings.
During the first half of 2022, the interest coverage ratio improved steadily, reaching a peak of 5.56 by June 30, 2022. However, in the second half of 2022, the ratio decreased significantly to 2.81 by September 30, 2022, before recovering slightly to 3.45 by December 31, 2022.
In the following year, the interest coverage ratio remained relatively stable, hovering around the 4 to 5 range. Notably, the ratio peaked at 5.52 by September 30, 2023, before declining slightly to 5.19 by December 31, 2023.
As of December 31, 2024, the interest coverage ratio further decreased to 2.88, which may require closer monitoring to ensure that the company can continue to meet its interest obligations comfortably. Overall, the trend in interest coverage indicates that CVS Health Corp has generally maintained a healthy ability to pay its interest expenses, albeit with some fluctuations in recent periods.