Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Elevance Health Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	25,317)	24,383)	24,228)	21,691)	20,500)
Customer relationships	6,263)	5,791)	5,598)	5,180)	4,500)
Provider and hospital relationships	326)	326)	324)	323)	228)
Other	242)	1,010)	610)	444)	352)
Intangible assets with finite lives, gross carrying amount	6,831)	7,127)	6,532)	5,947)	5,080)
Accumulated amortization	(4,025)	(4,279)	(3,506)	(4,057)	(3,696)
Intangible assets with finite lives, net carrying amount	2,806)	2,848)	3,026)	1,890)	1,384)
Blue Cross and Blue Shield and other trademarks	5,991)	5,991)	6,299)	6,299)	6,299)
State Medicaid licenses	1,476)	1,476)	1,290)	1,216)	991)
Intangible assets with indefinite lives	7,467)	7,467)	7,589)	7,515)	7,290)
Other intangible assets	10,273)	10,315)	10,615)	9,405)	8,674)
Goodwill and other intangible assets	35,590)	34,698)	34,843)	31,096)	29,174)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Elevance Health Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Elevance Health Inc. other intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Elevance Health Inc. goodwill and other intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Elevance Health Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	108,928)	102,772)	97,460)	86,615)	77,453)
Less: Goodwill	25,317)	24,383)	24,228)	21,691)	20,500)
Total assets (adjusted)	83,611)	78,389)	73,232)	64,924)	56,953)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	39,306)	36,307)	36,060)	33,199)	31,728)
Less: Goodwill	25,317)	24,383)	24,228)	21,691)	20,500)
Shareholders’ equity (adjusted)	13,989)	11,924)	11,832)	11,508)	11,228)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Elevance Health Inc., Financial Data: Reported vs. Adjusted

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Elevance Health Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	1.56	1.51	1.41	1.39	1.33
Adjusted total asset turnover	2.04	1.99	1.87	1.86	1.81
Financial Leverage
Reported financial leverage	2.77	2.83	2.70	2.61	2.44
Adjusted financial leverage	5.98	6.57	6.19	5.64	5.07
Return on Equity (ROE)
Reported ROE	15.23%	16.59%	16.93%	13.77%	15.15%
Adjusted ROE	42.80%	50.53%	51.59%	39.73%	42.81%
Return on Assets (ROA)
Reported ROA	5.50%	5.86%	6.26%	5.28%	6.21%
Adjusted ROA	7.16%	7.69%	8.34%	7.04%	8.44%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Elevance Health Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Elevance Health Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Elevance Health Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Elevance Health Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Elevance Health Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Operating revenue	170,209)	155,660)	136,943)	120,808)	103,141)
Total assets	108,928)	102,772)	97,460)	86,615)	77,453)
Activity Ratio
Total asset turnover¹	1.56	1.51	1.41	1.39	1.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Operating revenue	170,209)	155,660)	136,943)	120,808)	103,141)
Adjusted total assets	83,611)	78,389)	73,232)	64,924)	56,953)
Activity Ratio
Adjusted total asset turnover²	2.04	1.99	1.87	1.86	1.81

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Operating revenue ÷ Total assets
= 170,209 ÷ 108,928 = 1.56

² Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= 170,209 ÷ 83,611 = 2.04

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Elevance Health Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	108,928)	102,772)	97,460)	86,615)	77,453)
Shareholders’ equity	39,306)	36,307)	36,060)	33,199)	31,728)
Solvency Ratio
Financial leverage¹	2.77	2.83	2.70	2.61	2.44
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	83,611)	78,389)	73,232)	64,924)	56,953)
Adjusted shareholders’ equity	13,989)	11,924)	11,832)	11,508)	11,228)
Solvency Ratio
Adjusted financial leverage²	5.98	6.57	6.19	5.64	5.07

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 108,928 ÷ 39,306 = 2.77

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 83,611 ÷ 13,989 = 5.98

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Elevance Health Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,987)	6,025)	6,104)	4,572)	4,807)
Shareholders’ equity	39,306)	36,307)	36,060)	33,199)	31,728)
Profitability Ratio
ROE¹	15.23%	16.59%	16.93%	13.77%	15.15%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,987)	6,025)	6,104)	4,572)	4,807)
Adjusted shareholders’ equity	13,989)	11,924)	11,832)	11,508)	11,228)
Profitability Ratio
Adjusted ROE²	42.80%	50.53%	51.59%	39.73%	42.81%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 5,987 ÷ 39,306 = 15.23%

² Adjusted ROE = 100 × Shareholders’ net income ÷ Adjusted shareholders’ equity
= 100 × 5,987 ÷ 13,989 = 42.80%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Elevance Health Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,987)	6,025)	6,104)	4,572)	4,807)
Total assets	108,928)	102,772)	97,460)	86,615)	77,453)
Profitability Ratio
ROA¹	5.50%	5.86%	6.26%	5.28%	6.21%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,987)	6,025)	6,104)	4,572)	4,807)
Adjusted total assets	83,611)	78,389)	73,232)	64,924)	56,953)
Profitability Ratio
Adjusted ROA²	7.16%	7.69%	8.34%	7.04%	8.44%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 5,987 ÷ 108,928 = 5.50%

² Adjusted ROA = 100 × Shareholders’ net income ÷ Adjusted total assets
= 100 × 5,987 ÷ 83,611 = 7.16%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Elevance Health Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Elevance Health Inc. (NYSE:ELV)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Elevance Health Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Elevance Health Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)