ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CVS Health's annualized net income for the quarter that ended in Dec. 2023 was $8,184 Mil. CVS Health's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $75,399 Mil. Therefore, CVS Health's annualized ROE % for the quarter that ended in Dec. 2023 was 10.85%.
The historical rank and industry rank for CVS Health's ROE % or its related term are showing as below:
CVS'
s ROE % Range Over the Past 10 Years
Min: -1.24 Med: 11.18 Max: 17.77
Current: 11.39
During the past 13 years, CVS Health's highest ROE % was 17.77%. The lowest was -1.24%. And the median was 11.18%.
CVS's ROE % is ranked better than 55% of 20
companies
in the Healthcare Plans industry
Industry Median: 7.815
vs CVS: 11.39
CVS Health ROE % Historical Data
The historical data trend for CVS Health's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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CVS Health Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
ROE %
10.87
10.77
11.08
5.88
11.28
CVS Health Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
ROE %
13.14
11.96
10.55
12.30
10.85
Competitive Comparison
For the Healthcare Plans subindustry, CVS Health's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CVS Health ROE % Distribution
For the Healthcare Plans industry and Healthcare sector, CVS Health's ROE % distribution charts can be found below:
* The bar in red indicates where CVS Health's ROE % falls into.
CVS Health ROE % Calculation
CVS Health's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
ROE % is displayed in the 30-year financial page.
CVS Health (NYSE:CVS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
CVS Health ROE % Related Terms
Thank you for viewing the detailed overview of CVS Health's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
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