spent $146 billion in cost of goods sold expenses in 2016, and the figure increased to $156 billion in 2018, driven by growth in revenues. As a percentage of revenue, COGS declined from 83% in 2016 to 80% in 2018. It is expected to decline to 61% in 2019, reflecting the impact of the Aetna acquisition, given Aetna primarily being a health insurance company, and Benefits & Compensation accounts for most of its expenses. As such, post acquisition, CVS Health’s COGS as % of revenue has declined, while its operating costs have increased. CVS Health’s total expenses have largely trended higher from around $172 billion in 2016 to about $195 billion in 2018. As a percentage of revenues, expenses have remained more than 95%.
Below, we take a look at the key drivers of CVS Health’s expenses and net margins. Look at our interactive dashboard analysis ~ CVS Expenses: How Does CVS Health Spend Money? ~ for more details.
Breaking Down CVS Heath’s Total Expenses In 2018:
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- Total = $195 billion
- COGS = $156 billion
- Operating Expenses = $34 billion
- Provision for income taxes = $2 billion
- Non-operating expenses = $3 billion
Source: Forbes
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