Aureus
FRed Flag

CVS Health Corporation(CVS)

F

Financial data as of Dec 31, 2025Improving · Healthcare

FCF Margin1.9%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$7.8B
Revenue$402.1B
Net Cash-$71.5BNet debt position
Debt / FCF10.2xElevated debt burden
Current Ratio0.84Tight short-term liquidity
YoY FCF Growth+138.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Very high debt-to-FCF ratio (10.2x)
→
-1Current ratio below 1.0 (0.84)
→
+1Strong YoY FCF growth (138.6% YoY)
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+138.6%)
  • FCF trend is improving

Concerns

  • Low FCF margin (1.9%)
  • Heavy debt position ($71.5B)
  • High debt-to-FCF ratio (10.2x)
  • Current ratio below 1.0 — tight short-term liquidity
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.9%
Net Margin0.4%
Operating CF Margin2.6%
CapEx Ratio0.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$71.5BNet debt position
Debt / FCF10.2xElevated debt burden
Current Ratio0.84Tight liquidity
Debt / Equity1.06Moderate leverage

Quarterly FCF Trend

+138.6% YoYImproving (+138.6%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCVS Health Corporation
SectorHealthcare
Free Cash Flow$7.8B
Revenue$402.1B
Net Income$1.8B
Operating Cash Flow$10.6B
Capital Expenditure$2.8B
FCF Margin1.9%
Cash Conversion Rate—
Net Margin0.4%
Total Debt$80.0B
Total Cash$8.5B
Net Cash-$71.5B
Current Ratio0.84
Debt / Equity1.06
Debt / FCF10.2x
YoY FCF Growth+138.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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