Debt-to-Equity Ratio

CVS’s current Debt-to-Equity Ratio of 0.81x means that for every dollar of shareholders’ equity, the company has $0.81 in debt — a measure of how much the business relies on borrowed money versus owner investment.

Compared to sector peers, this is above the sector median of 0.72x, placing CVS in the 56th percentile, indicating slightly higher leverage than the typical peer. The year‑over‑year change is not available, but the quarter‑over‑quarter change shows a 19.8% decline, meaning the ratio dropped sharply from 1.01x to 0.81x in the last quarter. The combination of a moderately elevated debt level (above the median) with a fast‑falling trend signals reduced financial risk as the company has been deleveraging quickly. This metric contradicts the overall CAUTIOUS verdict, because the substantial quarterly reduction in leverage points to improving financial stability rather than heightened risk.

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