CVS Corporation Statement of Financial Position (Essay Sample)

CVS Health Corporation is one of the world's largest healthcare providers, and every year, its financial performance or reports are record-breaking. The corporation has diversified health services with almost half a million employees. The employees are committed to helping people to access better health care services. The financial statements of CVS Corporation for the years 2019 and 2020 will be presented and analyzed. These financial statements include the cash flow, statement of financial position, and statement of comprehensive income. The information or the financial statements were obtained from the “CVS Annual Report (K-10)” that the CVS Health corporation submitted to SEC and in the CVS corporation website."
CVS Health Corporation’s Statement of Comprehensive Income

2020
$ (million)

2019
$(million)

Increase or decrease (Amount)

Percentage increase or decrease

Revenue

$268,706.00

$256,776.00

$11,930.00

4.65%

Cost of sales

254,795.00

244,789.00

-10,006

-4.09%

Gross Profit

$13,911.00

11,987.00

1,924.00

16.05%

Interest expense

2,907.00

3,035.00

-128.00

-4.22%

Loss on early extinguishment of debts

1,440.00

79.00

1,361.00

1,722.78%

Operating income

9,564.00

8,873.00

691.00

7.79%

Other incomes

-206.00

-124.00

-82.00

-66.13%

Income before tax

$9,358.00

$8,749.00

609.00

6.96%

Income tax

-2,569.00

-2,366.00

-203

8.58%

Net Income

$6,789.00

$6,383.00

406.00

6.36%






From the above analysis, it is observed that while revenues for the financial year 2020 increased by 4.65%, gross profit increased by 16.05% because of a higher decrease in the cost of goods sold. The revenues for the Health corporation grew over the two financial years, and in the 2020 financial year, the company made a gross revenue of $13,911.00 million which represented an increase of 16.05%. Despite an increase in gross profit, the net income increase by 7.79% due to lower operating incomes. Interest expenses decreased by $ 128.00 million. However, there was an increase of 1,722.78%%; on loss on early extinguishment of debt which represented an increase of $ 1,361.00 million. Net operating income increase by$ 406.00 million despite the increase in tax provision of the financial year 2020. Tax provision of the financial year increased by $4.4 billion. It shows that the tax rate did not remain constant over the two years (2019 & 2020).
CVS Corporation Statement of Financial Position

2020
$(million)

2019
$(million)

Increase or decrease

Percentage change

Cash

7,854.00

5,683.00

2,171.00

38.20%

Short-term investments

3,000.00

2,373.00

627.00

26.42.00%

Receivables

21,742.00

19,617.00

2,125.00

10.83%

Other current assets

23,773.00

22,629.00

1,144.00

5.05%

Property and equipment

12,606.00

12,044.00

562.00

4.67%

Operating lease

20,792.00

20,860.00

-68.00

0.33%

Goodwill

79,552.00

79,974.00

-442.00

-0.53%

Intangible assets

31,142.00

33,121.00

-1,979.00

-5.98%

Other long term assets

4,624.00

4,600.00

24.00

0.52%

Total Assets

$205,085.00

$200,901

4,184.00

2.08%

Payables

11,138.00

10,492.00

646.00

6.15%

Pharmacy claim

15,795.00

13,601.00

2,194.00

16.13%

Health care costs payable

7,936.00

6,879.00

1,057.00

15.37%

Policyholders fund

4,270.00

2,991.00

1,279.00

42.76%

operating lease

1,638.00

1,596.00

42.00

2.63%

Long term debts

5,460.00

3,781.00

1,679.00

44.41%

Shareholders’ equity

158,848.00

161,561.00

2,713.00

1.68%

Total equities and liabilities

$205,085.00

200,901.00

4,184.00

2.08%


























The CVS Health corporation’s assets increased by $4,184.00 million to $205,085.00 in the financial year 2020 due to increased investment activities by the CVS Health corporation in property and equipment, which represented an increase of 4.67%. The other increase was a result of an increase in cash and cash equivalent and accounts receivables. On the other side of equities and liabilities, the$14.80 increase was reflected in the $17.00 billion increase inequities in the statement of financial position. CVS Health corporation had long-term debt of $ 460.00 in 2020, excluding the operating lease liabilities. The long-term debt will be repaid each financial year slowly, and with each payment, the share of the debt decreases. The trend of the long-term liability is offset by an increase in both operating and finance leases. The total lease liability of the corporation was $1,638.00 million in the financial year 2020. The corporation had pharmacy claims of 16.13% and health care costs payable amounting to 15.37%