Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Elevance Health Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited an overall increasing trend from 34.69 in 2020 to a peak of 39.05 in 2023, indicating improved efficiency in utilizing fixed assets to generate sales over these years. In 2024, the ratio slightly declined to 37.66, though it remained higher than the initial value in 2020.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric showed a consistent upward trajectory from 29.26 in 2020 to 34.43 in 2023, reflecting enhanced utilization of fixed and leased assets combined. Similar to the net fixed asset turnover alone, a minor decrease was observed in 2024, bringing the ratio to 33.57, yet it stayed significantly above the 2020 baseline.
- Total Asset Turnover
- The total asset turnover ratio gradually increased from 1.39 in 2020 to 1.56 in 2023, suggesting progressive effectiveness in asset use for revenue generation. However, there was a slight decrease to 1.50 in 2024, indicating a modest reduction in asset efficiency for that year, but still demonstrating an overall positive movement compared to the start of the period.
- Equity Turnover
- Equity turnover also showed a steady rise from 3.64 in 2020 to 4.33 in 2023, indicating better utilization of shareholders’ equity in generating revenues. In 2024, the ratio dipped slightly to 4.24 but remained significantly elevated relative to 2020, reflecting sustained efficient use of equity capital.
Net Fixed Asset Turnover
Elevance Health Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover = Operating revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenue
- The operating revenue exhibited a consistent upward trend over the five-year period. Starting at approximately US$120.8 billion in 2020, it increased annually to reach about US$175.2 billion by 2024. This reflects sustained revenue growth, with the largest absolute increase occurring between 2021 and 2022, indicating an accelerating expansion during these years.
- Property and Equipment, Net
- The net value of property and equipment showed steady growth throughout the observed period. Beginning at US$3.483 billion in 2020, it increased each year, culminating in US$4.652 billion in 2024. This gradual increase suggests ongoing investment in fixed assets and infrastructure, supporting operational capabilities in tandem with revenue growth.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenue, displayed relative stability with a mild upward trend from 34.69 in 2020 to a peak of 39.05 in 2023. However, there was a slight decline to 37.66 in 2024. The increase implies improved operational efficiency in asset utilization over most of this period, although the dip in the final year might suggest a slight contraction in asset productivity relative to revenue.
- Overall Analysis
- The financial data indicate a strong growth trajectory in both revenue and asset base over the five years, supported by continuing investments in property and equipment. Improved net fixed asset turnover ratios through most years highlight effective deployment of assets to drive revenue growth. The slight decrease in asset turnover in the final year warrants further investigation to determine if this is a temporary fluctuation or signals an emerging trend.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Elevance Health Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Property and equipment, net | ||||||
| Operating leases, ROU assets (located in Other noncurrent assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenue
- The operating revenue demonstrates a consistent upward trend over the five-year period. Starting at approximately 120.8 billion US dollars in 2020, it increased steadily each year, reaching about 175.2 billion US dollars by 2024. This indicates strong growth in the company's core business activities, with the largest absolute increase occurring between 2021 and 2022.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- The net value of property and equipment shows a gradual increase from 4.1 billion US dollars in 2020 to approximately 5.2 billion US dollars in 2024. The growth rate is relatively moderate, reflecting investment in fixed assets or capital expenditures consistent with the scale of operations.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio has improved steadily, starting at 29.26 in 2020 and peaking at 34.43 in 2023, before a slight decline to 33.57 in 2024. This ratio's growth suggests enhanced efficiency in utilizing fixed assets to generate revenue. The minor dip in the final year might reflect a relatively greater increase in fixed assets compared to revenue growth for that period.
Total Asset Turnover
Elevance Health Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenue
- The operating revenue exhibited a consistent upward trend over the assessed five-year period. Starting from approximately 120.8 billion US dollars in 2020, it increased steadily each year, reaching around 175.2 billion US dollars by 2024. This demonstrates a sustained growth in the company's revenue generation capacity.
- Total Assets
- Total assets also grew progressively during the same period. The asset base expanded from about 86.6 billion US dollars in 2020 to nearly 116.9 billion US dollars in 2024. This increase indicates ongoing investment in asset acquisition or valuation growth over these years.
- Total Asset Turnover
- The total asset turnover ratio, which measures efficiency in using assets to generate revenue, showed a generally positive trend with some fluctuations. It rose from 1.39 in 2020 to a peak of 1.56 in 2023, suggesting improved operational efficiency. However, there was a slight decline to 1.50 in 2024, indicating a marginal decrease in asset utilization efficiency compared to the prior year, though still higher than the earlier years.
- Overall Analysis
- The financial data points to a company experiencing steady growth in both its revenue and asset base, accompanied by an overall improvement in asset utilization efficiency. The small dip in asset turnover in the latest year analyzed could warrant further attention but does not substantially detract from the positive long-term trend.
Equity Turnover
Elevance Health Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Equity turnover = Operating revenue ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenue
- Operating revenue has shown a consistent upward trend from 2020 to 2024. The revenue increased from $120,808 million in 2020 to $175,204 million in 2024, demonstrating steady growth each year. The largest year-over-year increase occurred between 2021 and 2022, suggesting a period of accelerated expansion. Growth continued through subsequent years but at a slightly slower rate.
- Shareholders’ Equity
- Shareholders’ equity also exhibited progressive growth over the period analyzed. Starting at $33,199 million in 2020, it increased annually to reach $41,315 million by 2024. While the growth trend remained positive, the increments were relatively moderate in comparison to the operating revenue growth, indicating controlled accumulation of equity and possibly retention of earnings.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of using shareholders' equity to generate revenue, improved from 3.64 in 2020 to a peak of 4.33 in 2023. This indicates enhanced utilization of equity resources over time. However, in 2024, the ratio slightly decreased to 4.24, suggesting either a slight reduction in operational efficiency or a relative increase in equity compared to revenue growth in that year.