CVS Health Corporation — Earnings Quality Grade F
CVS · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 15 days, change +1 days YoY
AR growth 11.7% vs revenue growth 7.8%
Revenue 7.8%, CFFO 16.8%. Cash follows revenue
Expense Quality
Inventory 6.3% vs COGS 7.9%. Normal
CapEx growth 1.8% vs revenue 7.8%. Normal
Insufficient data
Gross margin 13.8%, change -0.0pp. Stable
Cash Flow Quality
CFFO/NI = 6.02. Profits backed by cash
FCF $7.8B, FCF/NI = 4.42
Accruals ratio = -3.5%. Low accruals
Cash $10.6B covers only 13% of debt $80.0B
Balance Sheet Health
Goodwill+Intangibles $111.0B = 148% of equity. Over 50%
Debt/EBITDA = 8.1x (>4x). Financial stress
Other assets 6.8% vs revenue 7.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09