CVS Pharmacy (CVS)

Definition

CVS Pharmacy (CVS) is a leading American retail pharmacy chain providing prescription medications, health care products, and services. It operates over 9,900 stores across the United States.

5 Must Know Facts For Your Next Test

1. CVS Pharmacy is part of CVS Health Corporation, which also includes CVS Caremark and Aetna.
2. The market value ratios for CVS can be influenced by its extensive retail footprint and diverse revenue streams.
3. Financial health measures like Price-to-Earnings (P/E) ratio and Price-to-Sales (P/S) ratio are commonly used to evaluate CVS's market performance.
4. CVS's acquisition of Aetna in 2018 significantly impacted its financial metrics and market valuation.
5. Investors often analyze CVS's dividend payout ratio to assess the sustainability of its dividend payments.

Review Questions

• How does the acquisition of Aetna by CVS affect its market value ratios?
• Which market value ratios are most relevant when assessing the financial health of CVS Pharmacy?
• What role does the dividend payout ratio play in evaluating CVS’s financial stability?

Related terms

Price-to-Earnings (P/E) Ratio: A measure comparing a company's current share price to its per-share earnings

Price-to-Sales (P/S) Ratio: A metric that evaluates a company's stock price relative to its revenue

Dividend Payout Ratio:

The proportion of earnings paid out as dividends to shareholders