CVS Health has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
CVS Health's Interest Coverage for the quarter that ended in Dec. 2023 was 4.89.
CVS Health's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.21.
As of today, CVS Health's Altman Z-Score is 2.21.
Competitive Comparison
For the Healthcare Plans subindustry, CVS Health's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution
For the Healthcare Plans industry and Healthcare sector, CVS Health's Financial Strength distribution charts can be found below:
* The bar in red indicates where CVS Health's Financial Strength falls into.
CVS Health Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
CVS Health's Interest Expense for the
months ended in Dec. 2023 was $-690 Mil. Its Operating Income for the
months ended in Dec. 2023 was $3,373 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $74,672 Mil.
CVS Health's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
CVS Health's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
CVS Health has a Z-score of 2.21, indicating it is in Grey Zones. This implies that CVS Health is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.21 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
CVS Health (CVS Health) Business Description
Traded in Other Exchanges
Address
One CVS Drive, Woonsocket, RI, USA, 02895
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.
Executives
| Edward J Ludwig |
director |
C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417 |
| Michael F Mahoney |
director |
BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234 |
| Thomas F. Cowhey |
officer: SVP, Interim CFO |
310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027 |
| J Scott Kirby |
director |
233 S. WACKER DRIVE 11TH FL WHQLD, CHICAGO IL 60606 |
| Brian A Kane |
officer: EVP/President, Aetna |
500 W MAIN STREET, LOUISVILLE KY 40202 |
| James David Clark |
officer: SVP, Cont & Chief Acct Officer |
ONE CVS DRIVE, WOONSOCKET RI 02760 |
| Karen S Lynch |
officer: EVP & Pres, Aetna Bus Unit |
151 FARMINGTON AVENUE, RW61, HARTFORD CT 06156 |
| Samrat S. Khichi |
officer: EVP, CPO and General Counsel |
C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873 |
| Thomas M Moriarty |
officer: EVP & General Counsel |
100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417 |
| Jeffrey R. Balser |
director |
3657 RICHLAND AVE., NASHVILLE TN 37205 |
| Alan Lotvin |
officer: EVP, Transformation |
55 NOD ROAD, AVON CT 06001 |
| Daniel P Finke |
officer: EVP/Pres, Health Care Benefits |
ONE CVS DRIVE, WOONSOCKET RI 02895 |
| Tilak Mandadi |
officer: EVP, Chief Technology Officer |
3600 LAS VEGAS BLVD. SOUTH, LAS VEGAS NV 89109 |
| Sreekanth K Chaguturu |
officer: EVP and Chief Medical Officer |
ONE CVS DRIVE, WOONSOCKET RI 02895 |
| Prem S Shah |
officer: EVP and Co-President of Retail |
ONE CVS DRIVE, WOONSOCKET RI 02895 |
CVS Health (CVS Health) Headlines
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