Elevance Health Inc. (NYSE:ELV)

The analysis of liquidity ratios over the observed periods reveals several key trends in the company's short-term financial health.

Current Ratio

The current ratio experienced a general declining trend from March 31, 2021, at 1.57 to a low point near 1.35 in September 2022, indicating a slight decrease in the company's ability to cover its current liabilities with current assets during this timeframe. This was followed by a modest recovery, with ratios fluctuating between 1.37 and 1.56 throughout 2023 and into 2025. The overall pattern suggests minor volatility but a satisfactory current asset coverage capacity, maintaining levels generally above 1.3, which is often considered adequate.

Quick Ratio

The quick ratio mirrors the trend of the current ratio, declining from 1.43 in March 2021 to approximately 1.21 in September 2022, before rebounding slightly during subsequent periods. The ratio stabilizes in the range of 1.23 to 1.34 from late 2022 through mid-2025, demonstrating a consistent ability to meet short-term obligations without relying on inventory sales. The consistent quick ratio above 1 indicates a strong liquidity position excluding inventory.

Cash Ratio

The cash ratio shows a more noticeable downward trend compared to the other liquidity ratios. Starting at 1.08 in March 2021, the ratio decreases steadily to lows around 0.79 by mid-2025, despite some fluctuations. This decline suggests a reduction in the most liquid assets held relative to current liabilities. However, the ratio remains close to or above 0.8 for most periods, implying the company retains a reasonable, though reduced, cash cushion to cover immediate liabilities.

Overall, the liquidity position as reflected by these ratios indicates a temporary tightening in liquidity around 2022 but a return to more stable levels thereafter. The company's ability to cover short-term obligations remains sound, although the gradual decline in the cash ratio may warrant monitoring to ensure cash reserves remain sufficient for operational needs.

The analysis of the quarterly financial data reveals several notable trends in the liquidity position of the company over the observed periods.

Current Assets

Current assets displayed some fluctuation but generally showed an upward trend from March 2021 through September 2025. Beginning at approximately $54.5 billion in March 2021, current assets experienced a modest decline mid-2021 before recovering and continuing to increase, reaching nearly $63.8 billion by September 2025. This upward trajectory indicates a strengthening in the company’s short-term resource base available to meet obligations.

Current Liabilities

Current liabilities increased from about $34.7 billion in March 2021 to a peak near $44.3 billion in March 2024, followed by a slight decline and some fluctuations toward September 2025. Despite several rises and falls, the overall movement suggests incremental growth in short-term obligations over time, though the fluctuations post-2024 may indicate some variability in payables or accrued expenses management.

Current Ratio

The current ratio, calculated as current assets divided by current liabilities, exhibited a downward trend from 1.57 in March 2021 to a low point near 1.35 in late 2021 and mid-2022, reflecting a tightening liquidity position during that period. Subsequently, the ratio improved gradually, oscillating around 1.4 to 1.5 through 2023 and into 2024, then showing a notable increase to approximately 1.56 by September 2025. This improvement suggests a recovery and enhancement of the company’s ability to cover short-term liabilities with current assets, possibly linked to the increasing asset base and controlled liabilities.

In summary, the company demonstrated a generally expanding pool of current assets alongside growing but more variable current liabilities, leading to an initial decrease followed by a recovery and strengthening of the current ratio. The liquidity measures imply effective management of resources to maintain satisfactory short-term financial health through the examined quarterly periods.

Total Quick Assets

The total quick assets demonstrated a generally upward trend over the observed periods. Starting at 49,802 million US dollars in the first quarter of 2021, the value fluctuated slightly through the end of 2022 but maintained a growth trajectory thereafter. By the first quarter of 2025, total quick assets reached 58,565 million US dollars, indicating a significant increase over the four-year span. Notable incremental growth occurred particularly from early 2023 onward, despite some minor declines in individual quarters.

Current Liabilities

Current liabilities have shown a consistent increase from 34,749 million US dollars in the first quarter of 2021 to a peak of approximately 44,334 million US dollars in the first quarter of 2024. Thereafter, the liabilities exhibited moderate fluctuations but generally remained within the range of 40,581 to 43,834 million US dollars, slightly decreasing to 40,878 million US dollars by the first quarter of 2025. Overall, current liabilities increased over the entire period but experienced relative stability with some cyclic variations in the later years.

Quick Ratio

The quick ratio, which measures liquidity by comparing quick assets to current liabilities, started at a strong level of 1.43 in March 2021 and declined gradually to a low near 1.21 in the third quarter of 2022. Following this low, the ratio exhibited a recovery phase, moving upward to regain a level close to its initial value by the first quarter of 2025, where it returned to 1.43. This pattern indicates initial pressure on liquidity in mid-periods but an overall maintenance of adequate short-term financial health through the end of the timeframe.

Summary Insights

The company’s liquidity position as reflected by total quick assets and the quick ratio has improved somewhat after a period of decline or stagnation around late 2021 to 2022. Although current liabilities increased over time, the growth in quick assets outpaced liabilities toward the end of the period, contributing to a rebound in the quick ratio. This suggests improved management of liquid resources relative to short-term obligations in the most recent periods. The observed trends point to strengthened liquidity resilience after mid-period challenges, supporting a stable or improving short-term financial stance.

The financial data reveals several key trends regarding liquidity and short-term obligations over the observed quarterly periods.

Total Cash Assets

Total cash assets have generally fluctuated over the assessed timeframe. Initially starting around 37.5 billion US dollars, cash holdings decreased notably during the first year, reaching a lower point around 33 billion US dollars by the end of 2021. Following that, there was a recovery towards approximately 38 billion US dollars in early 2023, but cash assets again showed some volatility in subsequent quarters. Overall, cash assets exhibit a cyclical pattern with periods of depletion followed by partial replenishment.

Current Liabilities

Current liabilities demonstrated a tendency to increase over the timeframe, moving from roughly 34.7 billion US dollars in the early period to a peak above 44 billion US dollars around the first quarter of 2024. After peaking, the liabilities slightly declined but remained elevated compared to the initial period, consistently trending near or above the 40 billion US dollar mark. This suggests an increasing short-term financial obligation load over time.

Cash Ratio

The cash ratio, indicative of liquidity by comparing cash assets to current liabilities, shows a downward trend from above parity (1.08) in early 2021 to a low near 0.79 in mid-2025. While there are periodic fluctuations, the general decline indicates a diminishing level of cash coverage for current liabilities, reflecting tighter liquidity conditions. Some quarters show minor recoveries in the ratio, but the overall pattern points to reduced short-term financial buffer relative to obligations.

In summary, the company’s liquidity position appears to be under pressure as cash assets have not consistently increased alongside growing current liabilities, contributing to a declining cash ratio. This trend implies a potential need for enhanced cash management or alternative financing to maintain sufficient short-term solvency.