CVS Operating Income vs Net Income Analysis

CVS Stock  USD 79.43  0.11  0.14%   
CVS Health financial indicator trend analysis is way more than just evaluating CVS Health Corp prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether CVS Health Corp is a good investment. Please check the relationship between CVS Health Operating Income and its Net Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CVS Health Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.

Operating Income vs Net Income

Operating Income vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of CVS Health Corp Operating Income account and Net Income. At this time, the significance of the direction appears to have very strong relationship.
The correlation between CVS Health's Operating Income and Net Income is 0.83. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Net Income in the same time period over historical financial statements of CVS Health Corp, assuming nothing else is changed. The correlation between historical values of CVS Health's Operating Income and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of CVS Health Corp are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Operating Income i.e., CVS Health's Operating Income and Net Income go up and down completely randomly.

Correlation Coefficient

0.83
Relationship DirectionPositive 
Relationship StrengthStrong

Operating Income

Operating Income is the amount of profit realized from CVS Health Corp operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of CVS Health Corp is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in CVS Health Corp financial statement analysis. It represents the amount of money remaining after all of CVS Health Corp operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Most indicators from CVS Health's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into CVS Health Corp current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CVS Health Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
Selling General Administrative is likely to gain to about 45.2 B in 2024, whereas Discontinued Operations is likely to drop (10.9 M) in 2024.
 2021 2022 2023 2024 (projected)
Operating Income13.2B16.3B13.7B14.4B
Other Operating Expenses277.1B306.4B601.0B631.0B

CVS Health fundamental ratios Correlations

0.980.060.980.970.940.970.910.871.00.930.930.940.440.980.880.88-0.931.00.770.980.830.950.940.960.99
0.980.00.930.910.921.00.850.810.990.960.880.870.361.00.840.93-0.960.990.740.930.840.970.870.970.98
0.060.00.110.10.09-0.050.210.40.030.020.280.090.250.010.27-0.15-0.070.05-0.280.17-0.03-0.050.260.00.04
0.980.930.110.950.930.910.940.90.970.850.940.980.370.930.860.79-0.930.970.80.990.830.870.970.930.97
0.970.910.10.950.920.890.940.860.960.890.90.930.610.910.920.81-0.820.940.750.970.780.90.940.890.96
0.940.920.090.930.920.90.850.890.940.840.920.880.50.90.810.83-0.850.930.760.930.880.820.890.90.9
0.971.0-0.050.910.890.90.830.760.980.950.840.850.350.990.830.94-0.950.980.740.910.840.980.840.960.97
0.910.850.210.940.940.850.830.820.890.780.840.950.50.830.960.68-0.80.890.740.960.80.820.990.780.92
0.870.810.40.90.860.890.760.820.850.770.990.850.440.810.760.68-0.820.860.560.910.670.720.880.850.83
1.00.990.030.970.960.940.980.890.850.950.910.920.430.990.870.91-0.941.00.760.960.830.960.910.970.99
0.930.960.020.850.890.840.950.780.770.950.840.770.450.970.820.97-0.890.940.570.860.760.980.780.940.93
0.930.880.280.940.90.920.840.840.990.910.840.890.410.880.780.76-0.880.920.630.940.730.80.90.920.89
0.940.870.090.980.930.880.850.950.850.920.770.890.350.870.840.68-0.870.930.840.980.750.820.970.870.94
0.440.360.250.370.610.50.350.50.440.430.450.410.350.370.630.37-0.150.380.240.460.360.410.460.30.43
0.981.00.010.930.910.90.990.830.810.990.970.880.870.370.830.93-0.950.990.720.920.80.980.860.970.98
0.880.840.270.860.920.810.830.960.760.870.820.780.840.630.830.72-0.740.860.620.910.770.850.920.740.89
0.880.93-0.150.790.810.830.940.680.680.910.970.760.680.370.930.72-0.860.890.560.780.810.930.680.910.87
-0.93-0.96-0.07-0.93-0.82-0.85-0.95-0.8-0.82-0.94-0.89-0.88-0.87-0.15-0.95-0.74-0.86-0.96-0.68-0.9-0.79-0.9-0.85-0.96-0.93
1.00.990.050.970.940.930.980.890.861.00.940.920.930.380.990.860.89-0.960.770.970.830.950.920.970.99
0.770.74-0.280.80.750.760.740.740.560.760.570.630.840.240.720.620.56-0.680.770.770.680.670.750.70.78
0.980.930.170.990.970.930.910.960.910.960.860.940.980.460.920.910.78-0.90.970.770.80.880.980.910.97
0.830.84-0.030.830.780.880.840.80.670.830.760.730.750.360.80.770.81-0.790.830.680.80.760.780.760.8
0.950.97-0.050.870.90.820.980.820.720.960.980.80.820.410.980.850.93-0.90.950.670.880.760.810.930.96
0.940.870.260.970.940.890.840.990.880.910.780.90.970.460.860.920.68-0.850.920.750.980.780.810.830.93
0.960.970.00.930.890.90.960.780.850.970.940.920.870.30.970.740.91-0.960.970.70.910.760.930.830.95
0.990.980.040.970.960.90.970.920.830.990.930.890.940.430.980.890.87-0.930.990.780.970.80.960.930.95
Click cells to compare fundamentals

CVS Health Account Relationship Matchups

CVS Health fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets222.4B230.7B233.0B228.3B249.7B262.2B
Short Long Term Debt Total89.0B85.0B76.0B70.7B79.4B83.4B
Other Current Liab4.8B5.8B5.6B47.6B2.5B2.3B
Total Current Liabilities53.3B62.0B67.8B69.7B79.2B83.1B
Total Stockholder Equity63.9B69.4B75.1B71.0B76.5B80.3B
Property Plant And Equipment Net32.9B33.3B32.0B30.7B30.4B32.0B
Net Debt83.3B77.2B66.6B57.8B71.2B74.7B
Retained Earnings45.1B49.6B54.9B56.1B61.6B64.7B
Cash5.7B7.9B9.4B12.9B8.2B8.6B
Non Current Assets Total172.1B174.3B173.0B162.6B181.9B191.0B
Non Currrent Assets Other4.6B4.6B4.7B4.0B3.6B3.8B
Cash And Short Term Investments8.1B10.9B12.5B15.7B11.5B12.0B
Net Receivables19.6B21.7B24.4B27.3B35.2B37.0B
Common Stock Shares Outstanding1.3B1.3B1.3B1.3B1.3B984.2M
Liabilities And Stockholders Equity222.4B230.7B233.0B228.3B249.7B262.2B
Non Current Liabilities Total105.0B99.0B89.8B87.2B93.9B98.6B
Inventory17.5B18.5B17.8B19.1B18.0B18.9B
Other Current Assets5.1B5.3B5.3B2.7B3.2B3.3B
Other Stockholder Equity(28.2B)(28.2B)(28.2B)(31.9B)(33.8B)(32.1B)
Total Liab158.3B161.0B157.6B157.0B173.1B181.7B
Property Plant And Equipment Gross32.9B33.3B12.9B12.9B51.1B53.7B
Total Current Assets50.3B56.4B60.0B65.7B67.9B71.3B
Accumulated Other Comprehensive Income1.0B1.4B965M(1.5B)(297M)(311.9M)
Short Term Debt5.4B7.1B5.9B3.5B4.7B4.9B
Intangible Assets33.1B31.1B29.0B24.8B29.2B30.7B
Accounts Payable10.5B11.1B12.5B14.8B14.9B15.6B
Common Stock46.0B46.5B47.4B48.2B49.0B51.4B
Good Will79.7B79.6B79.1B78.2B91.3B95.8B
Common Stock Total Equity46.0B46.5B47.4B48.2B55.4B58.2B
Other Liab21.4B21.0B19.7B19.9B22.9B24.1B
Other Assets9.1B51.0B9.8B7.6B8.7B4.8B
Long Term Debt64.7B59.2B52.0B50.5B58.6B61.6B
Treasury Stock(28.2B)(28.2B)(28.2B)(31.9B)(28.7B)(27.2B)
Property Plant Equipment32.9B12.6B12.9B12.9B14.8B9.5B
Current Deferred Revenue32.6B38.0B43.8B3.9B57.1B60.0B
Short Term Investments2.4B3B3.1B2.8B3.3B3.4B
Net Tangible Assets(49.0B)(41.3B)(33.1B)71.0B63.9B67.1B
Noncontrolling Interest In Consolidated Entity318M306M312M300M345M362.3M
Retained Earnings Total Equity45.1B49.6B54.9B56.1B64.6B39.9B
Long Term Debt Total64.7B59.2B52.0B50.5B58.0B34.0B

Pair Trading with CVS Health

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CVS Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will appreciate offsetting losses from the drop in the long position's value.

Moving against CVS Stock

  0.43MBIO Mustang Bio Report 3rd of April 2024 PairCorr
The ability to find closely correlated positions to CVS Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CVS Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CVS Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CVS Health Corp to buy it.
The correlation of CVS Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CVS Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CVS Health Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CVS Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether CVS Health Corp is a strong investment it is important to analyze CVS Health's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CVS Health's future performance. For an informed investment choice regarding CVS Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CVS Health Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running CVS Health's price analysis, check to measure CVS Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.
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Is CVS Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CVS Health. If investors know CVS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CVS Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Dividend Share
2.42
Earnings Share
6.47
Revenue Per Share
277.528
Quarterly Revenue Growth
0.12
The market value of CVS Health Corp is measured differently than its book value, which is the value of CVS that is recorded on the company's balance sheet. Investors also form their own opinion of CVS Health's value that differs from its market value or its book value, called intrinsic value, which is CVS Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CVS Health's market value can be influenced by many factors that don't directly affect CVS Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CVS Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if CVS Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CVS Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.