CVS Health (LTS:0HRS) Debt-to-EBITDA : 4.38 (As of Dec. 2023)

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What is CVS Health Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

CVS Health's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,713 Mil. CVS Health's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $74,672 Mil. CVS Health's annualized EBITDA for the quarter that ended in Dec. 2023 was $18,116 Mil. CVS Health's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.38.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for CVS Health's Debt-to-EBITDA or its related term are showing as below:

LTS:0HRS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.26 Med: 4.35 Max: 10.89
Current: 4.36

During the past 13 years, the highest Debt-to-EBITDA Ratio of CVS Health was 10.89. The lowest was 1.26. And the median was 4.35.

LTS:0HRS's Debt-to-EBITDA is ranked worse than
100% of 15 companies
in the Healthcare Plans industry
Industry Median: 2.47 vs LTS:0HRS: 4.36

CVS Health Debt-to-EBITDA Historical Data

The historical data trend for CVS Health's Debt-to-EBITDA 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.

* Premium members only.

CVS Health Debt-to-EBITDA Chart

CVS Health Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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5.43

4.97

4.34

5.73

4.36

CVS Health Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.73	4.28	4.71	4.14	4.38

Competitive Comparison of CVS Health's Debt-to-EBITDA

For the Healthcare Plans subindustry, CVS Health's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, CVS Health's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where CVS Health's Debt-to-EBITDA falls into.

CVS Health Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

CVS Health's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4713	+	74672)	/	18197
	=	4.36

CVS Health's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4713	+	74672)	/	18116
	=	4.38

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

CVS Health (LTS:0HRS) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

CVS Health Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of CVS Health's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

CVS Health (LTS:0HRS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » CVS Health Corp (LTS:0HRS) » Definitions » Debt-to-EBITDA

Comparable Companies

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CVS:USA CVS:Peru CVS:Mexico 1CVS:Italy CVSd:UK CVS:Germany CVS:Chile CVS:Canada CVSH34:Brazil CVS:Austria

Address

One CVS Drive, Woonsocket, RI, USA, 02895

Website

https://www.cvshealth.com

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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