Elevance Health Inc. (NYSE:ELV)

Total Asset Turnover

The reported total asset turnover ratio exhibits a generally increasing trend from 1.39 in 2020 to a peak of 1.56 in 2023, before slightly declining to 1.50 in 2024. The adjusted total asset turnover follows a similar pattern, rising steadily from 1.39 in 2020 to 1.55 in 2023, then decreasing to 1.48 in 2024. This indicates an enhanced efficiency in utilizing assets to generate revenue over the period, with a minor slowdown in the most recent year.

Current Ratio

The reported current ratio shows a gradual decline from 1.55 in 2020 to 1.40 in 2022, followed by slight improvement to 1.45 in 2024. The adjusted current ratio mirrors this pattern, starting at 1.57 in 2020, dipping to 1.43 in 2022, and increasing again to 1.49 by 2024. Overall, this suggests a temporary weakening in short-term liquidity around 2021-2022, which subsequently stabilizes and marginally improves.

Debt to Equity Ratio

The reported debt to equity ratio steadily increases from 0.60 in 2020 to 0.76 in 2024, indicating a growing reliance on debt financing relative to equity. The adjusted ratio follows a similar trajectory, rising from 0.59 to 0.71 over the same period. This trend reflects a gradual increase in financial leverage and potential risk associated with higher debt levels.

Debt to Capital Ratio

The reported debt to capital ratio increases slightly from 0.38 in 2020 to 0.43 in 2024, consistent with the debt to equity trend. The adjusted ratio rises from 0.37 to 0.42, reinforcing the observation of incremental growth in the proportion of debt in the company’s capital structure.

Financial Leverage

Reported financial leverage rises from 2.61 in 2020 to a peak of 2.83 in 2022 and 2024, with a slight dip in 2023. Adjusted financial leverage trends similarly, increasing from 2.44 in 2020 to 2.63 in 2024, signifying a modest increase in the company’s use of borrowed funds to finance assets. This could affect the company’s risk profile and returns to equity holders.

Net Profit Margin

The reported net profit margin increases from 3.78% in 2020 to a high of 4.46% in 2021, then declines gradually to 3.41% in 2024. Adjusted margins begin similarly but display more volatility, dropping significantly to 2.44% in 2022 before partially recovering to 3.54% in 2024. This pattern indicates some fluctuation in profitability, with a peak in 2021 followed by softer margins in subsequent years.

Return on Equity (ROE)

The reported ROE improves from 13.77% in 2020 to 16.93% in 2021, then declines progressively to 14.47% in 2024. Adjusted ROE shows a similar rise and more pronounced fall, reaching 15.65% in 2021 but dropping as low as 9.68% in 2022 before partially rebounding to 13.78% in 2024. The decreased adjusted ROE in 2022 points to challenges in generating shareholder returns during that year.

Return on Assets (ROA)

The reported ROA increases from 5.28% in 2020 to 6.26% in 2021, followed by a decline to 5.12% in 2024. The adjusted ROA reflects a similar path but with a sharper dip to 3.67% in 2022 and recovery to 5.24% in 2024. This suggests that asset profitability experienced a temporary setback but largely regained ground by the end of the period.

Operating Revenue

The operating revenue demonstrated a consistent upward trend over the five-year period. It increased from 120,808 million US dollars in 2020 to 175,204 million US dollars in 2024, showing steady growth each year. The rate of growth suggests positive revenue expansion, reflecting either increased sales volume, price adjustments, or market share gains.

Total Assets

Total assets also showed a steady increase, rising from 86,615 million US dollars in 2020 to 116,889 million US dollars in 2024. This indicates an expansion in the asset base, potentially due to capital investments, acquisitions, or accumulation of resources to support growing operations.

Reported Total Asset Turnover

The reported total asset turnover ratio showed an improving trend from 1.39 in 2020 to a peak of 1.56 in 2023, followed by a slight decline to 1.50 in 2024. This pattern suggests enhanced efficiency in the utilization of assets to generate sales over most of the period, with a minor reduction in efficiency in the final year.

Adjusted Total Assets

Adjusted total assets followed a similar trajectory to reported total assets, increasing from 87,189 million US dollars in 2020 to 118,366 million US dollars in 2024. The adjustment appears to have been consistently applied, with values marginally higher than reported assets, indicating some form of asset revaluation or adjustment.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio maintained a very close pattern to the reported ratio, starting at 1.39 in 2020, peaking at 1.55 in 2023, and slightly declining to 1.48 in 2024. The adjustment slightly tempers the turnover figures but follows the same overall trend, indicating a consistent measure of asset efficiency when using adjusted values.

The financial data reveals consistent growth in both current assets and current liabilities over the analyzed period from 2020 to 2024. Current assets increased from 45,751 million US dollars in 2020, peaking at 60,029 million US dollars in 2023 before slightly declining to 58,942 million US dollars in 2024. Similarly, current liabilities rose steadily from 29,453 million US dollars in 2020 to a high of 41,791 million US dollars in 2023, followed by a modest decrease to 40,581 million US dollars in 2024.

The reported current ratio shows a gradual downward trend from 1.55 in 2020 to 1.40 in 2022, suggesting a slight decline in short-term liquidity. However, from 2022 onwards, the ratio improves modestly to 1.44 in 2023 and 1.45 in 2024, indicating a stabilization and slight strengthening of the company’s ability to meet its short-term obligations.

Adjusted current assets, which presumably account for certain reclassifications or valuations, exhibit a similar upward pattern, increasing from 46,325 million US dollars in 2020 to 61,269 million US dollars in 2023 before a small decrease to 60,625 million US dollars in 2024. The adjusted current ratio follows a comparable trend to the reported current ratio, decreasing from 1.57 in 2020 to 1.43 in 2022, then recovering to 1.47 in 2023 and reaching 1.49 in 2024.

Current Assets

Overall increase over the five-year period with a peak in 2023 followed by a slight decline in 2024.

Current Liabilities

Consistent growth until 2023, followed by a modest reduction in the final year.

Reported Current Ratio

Decline from 2020 to 2022, then gradual improvement through 2024, indicating recovery in liquidity positions.

Adjusted Current Assets

Similar upward trend as current assets, peaking in 2023 with a small decrease in 2024.

Adjusted Current Ratio

Mimics the pattern of the reported current ratio, with a dip through 2022 and slight recovery thereafter.

In summary, the company exhibits expanding asset and liability bases, with temporary contraction in liquidity ratios mid-period, followed by signs of improvement. The adjusted figures reinforce the observations from reported data, suggesting that underlying liquidity conditions may have experienced transient pressure but have begun to stabilize and strengthen towards the most recent period.

Total Debt

The total debt has shown a consistent upward trend over the five-year period, increasing from US$20,035 million at the end of 2020 to US$31,232 million by the end of 2024. This represents a notable rise, particularly between 2023 and 2024 when total debt grew by approximately 24.3%.

Shareholders’ Equity

Shareholders’ equity has also increased steadily throughout the same period, moving from US$33,199 million in 2020 to US$41,315 million in 2024. The growth is relatively gradual and stable, with no marked volatility, reflecting a positive accumulation of equity over time.

Reported Debt to Equity Ratio

This ratio experienced a slight upward movement overall but remained relatively stable between 0.6 and 0.76 throughout the period. It peaked at 0.76 in 2024, indicating a higher reliance on debt financing relative to equity in the most recent year, despite some slight fluctuations around 0.64 to 0.66 in prior years.

Adjusted Total Debt

The adjusted total debt values closely mirror the trend observed in total debt, increasing from US$20,992 million in 2020 to US$32,043 million in 2024. The consistent rise in adjusted debt aligns with the reported total debt, confirming an increasing debt burden on the company.

Adjusted Total Equity

Adjusted total equity shows a general upward trend, increasing from US$35,792 million at the end of 2020 to US$45,051 million in 2024. However, there was a slight decrease from 2021 to 2022 before resuming growth, indicating minor fluctuations but an overall positive equity trend.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio remains relatively stable between 0.59 and 0.71, lower than the reported ratio but following a similar pattern. The ratio peaked in 2024 at 0.71, signaling a gradual increase in financial leverage over time, though the ratio remains within moderate limits.

Summary of Financial Leverage

Overall, the data indicates a rising trend in debt levels outpacing equity growth, reflected in the increasing debt-to-equity ratios. Both reported and adjusted ratios suggest growing leverage, with the company taking on more debt relative to its equity base, especially pronounced in the latest year analyzed. Equity growth remains healthy yet somewhat slower compared to debt, which may suggest an increasing focus on debt financing.

Total debt

The total debt of the company has shown a consistent upward trend over the five-year period. Starting at US$ 20,035 million in 2020, it increased steadily each year, reaching US$ 31,232 million by 2024. This represents a significant expansion in the company's debt level, with the most notable increase occurring between 2023 and 2024.

Total capital

Total capital also exhibited a continuous growth trend, rising from US$ 53,234 million in 2020 to US$ 72,547 million in 2024. The increases were steady year-over-year, indicating an expansion in the company’s overall capital base during the period analyzed.

Reported debt to capital ratio

The reported debt to capital ratio remained relatively stable between 0.38 and 0.40 from 2020 to 2023. In 2024, however, this ratio increased to 0.43, reflecting a moderately higher proportion of debt in the company's capital structure during the latest year.

Adjusted total debt

The adjusted total debt values followed a similar positive growth pattern as the reported total debt, increasing from US$ 20,992 million in 2020 to US$ 32,043 million in 2024. This adjusted figure consistently exceeds the reported total debt by a small margin, reflecting additional adjustments not captured in the reported figures.

Adjusted total capital

Adjusted total capital also grew steadily from US$ 56,784 million in 2020 to US$ 77,094 million in 2024. The consistent rise suggests an expanding capital base after accounting for adjustments, with the gap between adjusted and reported capital figures remaining fairly stable throughout the period.

Adjusted debt to capital ratio

The adjusted debt to capital ratio showed minor variations, ranging from 0.37 to 0.39 between 2020 and 2023, then increasing to 0.42 in 2024. This indicates a slightly increased leverage position on an adjusted basis by the end of the period, mirroring the trend observed in the reported ratio.

Total Assets

The total assets of the company exhibit a consistent upward trend over the five-year period, increasing from $86,615 million in 2020 to $116,889 million in 2024. This steady growth suggests continued asset accumulation and expansion.

Shareholders’ Equity

Shareholders’ equity has also increased each year, moving from $33,199 million in 2020 to $41,315 million in 2024. The growth, although steady, is at a somewhat slower pace compared to total assets, indicating the company is maintaining or slightly increasing its equity base while expanding assets.

Reported Financial Leverage

The reported financial leverage ratio shows moderate fluctuations, starting at 2.61 in 2020 and rising to 2.83 in 2024, with a slight dip in 2023. This pattern indicates an overall increase in leverage, implying the company has taken on relatively more debt or liabilities compared to equity over time.

Adjusted Total Assets

Adjusted total assets follow a similar upward trajectory as total assets, increasing from $87,189 million in 2020 to $118,366 million in 2024. This confirms the growth observed in reported total assets, reflecting adjustments that likely account for more accurate valuation or different accounting treatments.

Adjusted Total Equity

Adjusted total equity shows steady growth as well, rising from $35,792 million in 2020 to $45,051 million in 2024. This increase aligns with the growth in shareholders’ equity, reinforcing a gradual strengthening of the company’s equity position on an adjusted basis.

Adjusted Financial Leverage

The adjusted financial leverage ratio rises from 2.44 in 2020 to 2.63 in 2024, with minor fluctuations similar to those observed in the reported leverage. This indicates a controlled increase in leverage when adjustments are considered, suggesting the company is managing its financial risk with some prudence despite incremental leverage growth.

Shareholders’ Net Income

Shareholders’ net income exhibited an increasing trend from 2020 to 2021, rising from 4,572 million USD to 6,104 million USD. However, after peaking in 2021, net income slightly declined and remained relatively stable from 2022 through 2024, with values around the 6,000 million USD mark. This indicates a plateau in net income following the initial growth.

Operating Revenue

Operating revenue showed consistent growth throughout the analyzed period, increasing steadily from 120,808 million USD in 2020 to 175,204 million USD in 2024. This presents a positive trend in top-line performance, reflecting expansion or increased business activity over the five-year span.

Reported Net Profit Margin

The reported net profit margin improved from 3.78% in 2020 to a peak of 4.46% in 2021. Subsequently, it declined each year, reaching 3.41% by 2024. This trend suggests that despite revenue growth, profitability relative to revenue has diminished over the latest years analyzed.

Adjusted Net Income

Adjusted net income followed an inconsistent pattern. It rose from 4,541 million USD in 2020 to 6,209 million USD in 2021, sharply declined to 3,800 million USD in 2022, then rebounded to 6,742 million USD in 2023 before decreasing again to 6,207 million USD in 2024. This volatility may indicate the impact of extraordinary items or adjustments affecting comparability across periods.

Adjusted Net Profit Margin

The adjusted net profit margin showed a similar fluctuating pattern: increasing from 3.76% in 2020 to 4.53% in 2021, then sharply dropping to 2.44% in 2022, followed by an improvement to 3.96% in 2023, and a slight decline to 3.54% in 2024. These variations support the observation of irregular adjustments influencing profitability metrics.

Summary Insights

Overall, operating revenue growth was consistent and robust, indicating business expansion. However, profit margins, both reported and adjusted, displayed a peak in 2021 before declining, suggesting pressure on profitability despite increased revenue. The fluctuations in adjusted net income and margin point to volatile non-operating or exceptional items affecting reported profitability. The plateau in shareholders' net income from 2022 onwards, despite revenue growth, further indicates challenges in maintaining profitability levels.

The financial data indicates several noteworthy trends over the five-year period ending December 31, 2024. Both shareholders’ net income and adjusted net income exhibit fluctuations suggesting variations in profitability and underlying business performance.

Shareholders’ Net Income

The net income increased from 4,572 million USD in 2020 to a peak of 6,104 million USD in 2021. It then slightly decreased to 6,025 million USD in 2022, followed by a modest decline in subsequent years, ending at 5,980 million USD in 2024. This pattern reflects a general upward trend with some recent stabilization or slight decline.

Shareholders’ Equity

Shareholders’ equity rose steadily each year from 33,199 million USD in 2020 to 41,315 million USD in 2024, illustrating consistent capital growth and possibly retained earnings or additional capital contributions enhancing the company's financial base.

Reported Return on Equity (ROE)

The reported ROE showed improvement from 13.77% in 2020 to a high of 16.93% in 2021, then witnessed a gradual decline, reaching 14.47% by 2024. This suggests that while profitability relative to equity improved sharply initially, it tempered in the latter years.

Adjusted Net Income

Adjusted net income mirrors the overall profitability trend but with more pronounced volatility. It grew from 4,541 million USD in 2020 to 6,209 million USD in 2021, dropped sharply to 3,800 million USD in 2022, rebounded strongly to 6,742 million USD in 2023, and then declined again to 6,207 million USD in 2024. Such fluctuations indicate the influence of adjustments, likely related to non-recurring items or accounting changes impacting comparability.

Adjusted Total Equity

The adjusted total equity consistently increased from 35,792 million USD in 2020 to 45,051 million USD in 2024. This steady increase aligns with the increase observed in the reported shareholders’ equity, reflecting a strong capital position accounting for adjustments.

Adjusted ROE

The adjusted ROE follows a similar trajectory as the reported ROE but with a sharper dip in 2022, dropping to 9.68%, before rebounding to 15.91% in 2023 and decreasing to 13.78% in 2024. This indicates that underlying earnings power, excluding certain adjustments, faced volatility, especially in 2022.

Overall, the data reflect a generally solid financial condition with steady equity growth accompanied by fluctuating profitability measures. The variations in adjusted figures point to underlying operational or accounting factors impacting net income and returns in certain periods, particularly in 2022. Despite this, the company maintains a healthy return on equity and expanding equity base over the period analyzed.

Shareholders’ Net Income

The shareholders’ net income exhibited a generally increasing trend from 2020 to 2021, rising from 4,572 million US dollars to 6,104 million US dollars. Subsequently, it slightly decreased in 2022 and has remained relatively stable through 2023 and 2024 at approximately 6,000 million US dollars. This indicates a peak in 2021 followed by a modest decline and stabilization in the following years.

Total Assets

Total assets consistently increased over the entire period from 86,615 million US dollars in 2020 to 116,889 million US dollars in 2024. The growth was steady, showing the company's expanding asset base year-over-year, with the most significant increments occurring between 2023 and 2024.

Reported Return on Assets (ROA)

The reported ROA rose from 5.28% in 2020 to a peak of 6.26% in 2021, indicating improved asset efficiency during that period. However, it declined gradually afterwards to 5.86% in 2022, 5.5% in 2023, and further to 5.12% in 2024. This suggests diminishing returns on assets despite asset growth.

Adjusted Net Income

Adjusted net income closely followed the pattern of shareholders’ net income initially, increasing from 4,541 million US dollars in 2020 to 6,209 million US dollars in 2021. It then dropped sharply in 2022 to 3,800 million US dollars before rebounding to 6,742 million US dollars in 2023 and slightly decreasing to 6,207 million US dollars in 2024. The notable dip in 2022 points to an unusual event or adjustment impacting results that year, succeeded by recovery.

Adjusted Total Assets

Adjusted total assets increased steadily over the period, from 87,189 million US dollars in 2020 to 118,366 million US dollars in 2024. This aligns closely with the trend in reported total assets, confirming consistent growth in asset base after adjustments.

Adjusted Return on Assets (ROA)

The adjusted ROA peaked at 6.32% in 2021, similar to the reported ROA trend. It then fell sharply to 3.67% in 2022, reflecting the significant drop in adjusted net income that year. Afterward, it recovered to 6.13% in 2023 before declining again to 5.24% in 2024. This pattern underscores variability in earnings performance relative to asset base, with 2022 as an outlier year.