Professional Documents
Culture Documents
CVS Health
CVS Health
known brands, including Aetna, CVS Caremark, and CVS Pharmacy, which operates as a network
of retail pharmacies. Other well-known brands owned by CVS Health Corporation include CVS
Specialty and CVS Health Insurance. The increase in net revenues from 2022 to 2021 was $3.6
billion, while the increase in net revenues from 2021 to 2020 was $16.0 billion. Revenues in 2019
and 2018 also increased. The upward trend suggests that CVS's performance in other areas, such as
the revenue from pharmacy services and the revenue from retail pharmacy services, has an effect on
the company's total net sales. Despite this, the year 2019 saw a decrease of -2.35% in comparison to
the previous year's gain in gross profit. The dividends paid out by CVS Caremark have shown a
compound annual growth rate of 29.25% over the last five years. At the end of November 2022, the
common stock of CVS Caremark was selling at a multiple of 34 times the company's profits per
share. The CVS Caremark Corporation is expected to create daily returns of 0.3038%, assuming a
return distribution volatility of 1.0634% over a time horizon of an investment of sixty days. As a
result, Mr. Donothing considers CVS to be an excellent investment for the long run.
CVS Caremark pharmacy background information CVS Caremark pharmacy is one of the most
well-known pharmacies in the United States that has effectively dominated the industry on a wider
scale. The group today operates over 7600 retail pharmacies and ensures a steady supply of medical
facilities. This, along with the fact that the company is led by a strong management team led by
CEO Larry J. Merlo, has provided the firm a substantial competitive edge in fulfilling its many
goals. Because of the flawless integration of varied company-wide processes, the business has an
outstanding reputation for delivering medical services. In his remarks in the 2013 annual report, the
CEO said that the firm has adopted a number of measures as a pharmacy innovation company to
decrease the risks associated with the pharmacy technology industry's dynamic environment. This
has been made considerably simpler by the introduction of a sophisticated information system
designed to facilitate activity coordination inside the company. To do this, the company has grown
its 33 million customer service centers and 3.2 million annual pharmacy advisor interventions.
These have been done to increase the amount of patients that visit this pharmacy. The method seems
to have been effective, since there are currently 1.8 billion visits every year. The number of minute
clinic visits has also increased to 4 million every year. This displays a strong sense of growth for the
company in terms of profitability and target market. This essay is meant to give a comprehensive
financial analysis of this illustrious firm, paying particular attention to different analytical
methodologies that would reveal the genuine financial and performance status of the corporation. In
this instance, the horizontal (trend) analysis will get a lot of attention. To do this, several financial
statement items from 2011 to 2013 would need to be compared. Second, in this case, a vertical
inspection is critical. This would need a detailed examination of financial ratios, which, given the
circumstances, would disclose how the organization fared throughout the aforementioned time
period. Third, it is critical to scrutinize the research in terms of the gain on the shareholder's wealth.
In this case, a closer look at the earnings per share, dividend per share, and accompanying constant
analysis is critical.