Elevance Health Inc. (NYSE:ELV)

The liquidity position, as indicated by the observed ratios, demonstrates a generally stable trend over the analyzed period, with some fluctuations. The current, quick, and cash ratios all exhibit relatively narrow ranges, suggesting consistent short-term solvency. However, a closer examination reveals subtle shifts worthy of note.

Current Ratio

The current ratio experienced a slight upward trajectory from 1.36 in the first quarter of 2022 to a peak of 1.44 in both the fourth quarter of 2022 and the second quarter of 2024. A minor dip to 1.37 was observed in the first quarter of 2024, followed by a rebound. The most recent value, as of the second quarter of 2025, stands at 1.56, representing a high point in the observed period. This indicates a strengthening ability to cover short-term liabilities with short-term assets.

Quick Ratio

The quick ratio mirrors the trend of the current ratio, increasing from 1.23 in March 2022 to 1.32 in June 2023, and then fluctuating between 1.29 and 1.34 for several quarters. A more pronounced increase is visible in the latter part of the period, reaching 1.43 in September 2025, and slightly decreasing to 1.41 in December 2025. This suggests an improving capacity to meet immediate obligations with the most liquid assets.

Cash Ratio

The cash ratio demonstrates the most stability of the three ratios analyzed. It remained relatively consistent around 0.86 to 0.92 for much of the period. A decrease to 0.79 was noted in the first half of 2025, before recovering to 0.89 and 0.88 in subsequent quarters. This indicates a consistent, though conservative, ability to cover current liabilities with immediately available cash.

Overall, the observed liquidity ratios suggest a healthy and stable short-term financial position. The slight increases in the current and quick ratios towards the end of the period may indicate improved liquidity management or a shift in asset composition. The cash ratio’s stability provides a baseline of immediate solvency. Continued monitoring of these ratios is recommended to identify any significant deviations from these established trends.

The current ratio for the analyzed period demonstrates a generally stable liquidity position, with some fluctuation over the observed timeframe. The ratio consistently remains above 1.30, indicating the company possesses more current assets than current liabilities throughout the period. However, there are discernible trends and variations worth noting.

Overall Trend

From March 31, 2022, through December 31, 2022, the current ratio remained relatively flat, fluctuating between 1.35 and 1.40. A gradual increase is then observed through June 30, 2023, reaching a peak of 1.44. Following this, the ratio experiences a slight decline to 1.41 by September 30, 2023, before recovering to 1.44 by the end of the year. The period from March 31, 2024, to December 31, 2024, shows further volatility, with a dip to 1.37 followed by a rise to 1.50. The most recent quarters, from March 31, 2025, to December 31, 2025, show a slight decrease from 1.56 to 1.54.

Peak and Trough Values

The highest recorded current ratio is 1.50, achieved on June 30, 2024. The lowest value within the analyzed period is 1.35, recorded on both March 31, 2022, and September 30, 2022. The most recent value, 1.54 on December 31, 2025, remains above the historical low.

Recent Performance (2024-2025)

The period from 2024 to the latest available quarter exhibits more pronounced fluctuations. The ratio decreased from 1.37 in March 2024 to 1.45 in December 2024, then increased to 1.56 in September 2025 before settling at 1.54 in December 2025. This suggests a potential increase in short-term obligations relative to assets during the first half of 2024, followed by a strengthening of the liquidity position in the latter half of 2024 and the first three quarters of 2025.

Comparison of First and Last Periods

Comparing the initial period (March 31, 2022) to the final period (December 31, 2025), the current ratio has increased from 1.36 to 1.54. This indicates an overall improvement in the company’s ability to cover its short-term liabilities with its short-term assets over the analyzed timeframe, despite the interim fluctuations.

The quick ratio for the analyzed period demonstrates a generally healthy and stable liquidity position, with some fluctuations observed over the ten quarters. The ratio consistently remains above 1.0, indicating the company possesses sufficient quick assets to cover its immediate liabilities. A slight upward trend is noticeable in the later part of the analyzed period.

Overall Trend

The quick ratio generally fluctuated between 1.21 and 1.43 throughout the period. Initial values in 2022 ranged from 1.22 to 1.27. A gradual increase occurred through the first half of 2023, peaking at 1.32. The ratio experienced a slight decline in late 2023 and early 2024 before increasing again to reach 1.43 by September 2025, followed by a minor decrease to 1.41 by December 2025.

Short-Term Fluctuations

A minor dip in the quick ratio is observed from the fourth quarter of 2022 (1.27) to the first quarter of 2023 (1.31). Conversely, a slight decrease is apparent from the first quarter of 2024 (1.23) to the fourth quarter of 2024 (1.32). These fluctuations appear to correlate with minor changes in both quick assets and current liabilities.

Recent Performance

The most recent two quarters (September 30, 2025 and December 31, 2025) show a quick ratio of 1.43 and 1.41 respectively. This represents the highest values observed during the analyzed period, suggesting an improved ability to meet short-term obligations. The slight decrease from September to December is minimal and does not significantly alter the overall positive assessment.

Supporting Asset & Liability Movements

Total quick assets increased overall from US$48,704 million in March 2022 to US$57,657 million in December 2025. Current liabilities also increased, moving from US$39,733 million to US$41,035 million over the same period. The increase in quick assets appears to be outpacing the increase in current liabilities, contributing to the observed upward trend in the quick ratio, particularly in the latter half of the period.

The cash ratio for the analyzed period demonstrates a generally stable profile with some fluctuation. Throughout the observed timeframe, the ratio consistently remains above 0.80, indicating a strong ability to meet current obligations with solely cash and cash equivalents. However, a slight downward trend emerges towards the end of the period.

Overall Trend

The cash ratio generally fluctuated between 0.86 and 0.92 from March 2022 through June 2023. A slight decline is then observed, reaching a low of 0.79 in March and June of 2025, before recovering slightly to 0.88 by December 2025. This suggests a potential weakening in the most recent periods, though still maintaining a healthy level.

Short-Term Fluctuations

An initial period of stability is noted from March 2022 to December 2022, with the ratio remaining consistently around 0.86-0.87. A peak is observed in June 2023 at 0.92, representing the highest point in the analyzed period. Following this peak, the ratio experiences a more noticeable decline, though it remains above 0.80 throughout.

Recent Performance

The final four quarters of the analyzed period (March 2024 – December 2025) show the most variability. The ratio dips to 0.82 in March 2024, recovers to 0.90 in September 2024, then declines to 0.79 in both March and June of 2025, before a modest increase to 0.88 in December 2025. This recent pattern warrants further investigation to determine the underlying causes of these fluctuations.

The consistent values above 0.80 suggest a conservative liquidity position. The recent decline, while not alarming, should be monitored to ensure it does not indicate a developing trend of decreasing liquidity.