Elevance Health Inc., adjustment to shareholders’ net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Shareholders’ net income (as reported)	5,987)	6,025)	6,104)	4,572)	4,807)
Add: Change in net unrealized gains (losses) on investments	1,117)	(2,260)	(457)	428)	680)
Less: Change in non-credit component of impairment losses on investments	—)	(3)	2)	—)	—)
Shareholders’ net income (adjusted)	7,104)	3,762)	5,649)	5,000)	5,487)

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Elevance Health Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	3.52%	3.87%	4.46%	3.78%	4.66%
Adjusted net profit margin	4.17%	2.42%	4.13%	4.14%	5.32%
Return on Equity (ROE)
Reported ROE	15.23%	16.59%	16.93%	13.77%	15.15%
Adjusted ROE	18.07%	10.36%	15.67%	15.06%	17.29%
Return on Assets (ROA)
Reported ROA	5.50%	5.86%	6.26%	5.28%	6.21%
Adjusted ROA	6.52%	3.66%	5.80%	5.77%	7.08%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Elevance Health Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Elevance Health Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Elevance Health Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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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)
Shareholders’ net income	5,987)	6,025)	6,104)	4,572)	4,807)
Operating revenue	170,209)	155,660)	136,943)	120,808)	103,141)
Profitability Ratio
Net profit margin¹	3.52%	3.87%	4.46%	3.78%	4.66%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	7,104)	3,762)	5,649)	5,000)	5,487)
Operating revenue	170,209)	155,660)	136,943)	120,808)	103,141)
Profitability Ratio
Adjusted net profit margin²	4.17%	2.42%	4.13%	4.14%	5.32%

2023 Calculations

¹ Net profit margin = 100 × Shareholders’ net income ÷ Operating revenue
= 100 × 5,987 ÷ 170,209 = 3.52%

² Adjusted net profit margin = 100 × Adjusted shareholders’ net income ÷ Operating revenue
= 100 × 7,104 ÷ 170,209 = 4.17%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Elevance Health Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	7,104)	3,762)	5,649)	5,000)	5,487)
Shareholders’ equity	39,306)	36,307)	36,060)	33,199)	31,728)
Profitability Ratio
Adjusted ROE²	18.07%	10.36%	15.67%	15.06%	17.29%

2023 Calculations

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

² Adjusted ROE = 100 × Adjusted shareholders’ net income ÷ Shareholders’ equity
= 100 × 7,104 ÷ 39,306 = 18.07%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	7,104)	3,762)	5,649)	5,000)	5,487)
Total assets	108,928)	102,772)	97,460)	86,615)	77,453)
Profitability Ratio
Adjusted ROA²	6.52%	3.66%	5.80%	5.77%	7.08%

2023 Calculations

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

² Adjusted ROA = 100 × Adjusted shareholders’ net income ÷ Total assets
= 100 × 7,104 ÷ 108,928 = 6.52%

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

Elevance Health Inc. (NYSE:ELV)

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