Elevance Health Inc. (NYSE:ELV)

The financial data reveals several notable trends in the key operating efficiency ratios and related metrics over the observed periods.

Receivables Turnover

The receivables turnover ratio exhibits some fluctuations, generally moving between approximately 15.98 and 20.66. Early on, in 2020-2021, the ratio showed volatility around the upper teens and low twenties. From 2022 onwards, periodic declines are visible, with a general downward trend towards the end of the dataset, culminating in a lower ratio of 14.42 by the first quarter of 2025. This suggests that the speed at which receivables are collected has slowed somewhat over time, potentially indicating longer collection periods or more extended credit terms.

Payables Turnover

The payables turnover ratio remains relatively stable across all periods, consistently hovering between 7.28 and 8.17. Minor gradual increases are visible towards the most recent quarters, rising from about 7.3 up to slightly above 8 before settling near 7.87 in the latest quarter. This steady range indicates a consistent pace of settling payables, without major shifts in payment behavior to suppliers.

Working Capital Turnover

Working capital turnover demonstrates variability but exhibits an overall increasing trend across the timeframe. Starting near 5.38 in early 2020, it rises sharply to above 9.11 at the end of 2021, indicating improved efficiency in utilizing working capital to generate revenue. Post-2021, while some fluctuations occur, the ratio generally stays elevated above 6, often around 7 to 8, suggesting sustained operational efficiency improvements relative to the earlier periods.

Average Receivable Collection Period (Days)

This metric corresponds inversely with the receivables turnover and fluctuates mainly between 18 and 25 days. There are recurring cycles where the collection period lengthens slightly—reaching peaks around 22–25 days—followed by shorter periods around 18–20 days. Toward the most recent quarters, a slight increase in collection days is apparent, culminating near 25 days, possibly highlighting extended customer payment terms or collection delays.

Average Payables Payment Period (Days)

The average payables payment period remains relatively consistent, mostly ranging from 45 to 50 days over the entire period. Small downward trends toward the final quarters are observed, with payment periods settling modestly closer to 45 days compared to earlier readings of around 50 days. This indicates a slight acceleration in paying suppliers over time but generally stable supplier payment practices.

In summary, the data indicates sustained operational efficiency with improvements in working capital turnover, suggesting better utilization of short-term assets and liabilities. However, the receivables turnover and average collection period reveal some deceleration in cash collections, which may warrant monitoring. Payables turnover and payment periods are stable, reflecting steady supplier relationship and payment terms.

The data reveals several key trends in the quarterly financial metrics related to premiums, premium receivables, and receivables turnover over a period spanning from March 2020 through March 2025.

Premiums

Premiums have exhibited a generally upward trajectory with some fluctuations observed toward the later periods. Starting at $25,517 million in March 2020, premiums increased steadily throughout 2020 and 2021, reaching a peak of $36,589 million in June 2023. However, following this peak, premiums show a certain degree of volatility, declining to $35,259 million in September 2023 before rising again to $40,887 million by March 2025.

Premium Receivables

The level of premium receivables shows a notable increase across the timeframe, indicating that outstanding amounts due from premiums have grown. This figure rose from $5,786 million in March 2020 to $10,359 million by March 2025, more than doubling over five years. There is some variability within this upward trend, but the consistent rise may suggest expanded sales or changes in payment terms, which should be examined further for implications on cash flow.

Receivables Turnover

The receivables turnover ratio, which indicates the efficiency with which premium receivables are collected, was not provided for early periods but shows values starting at 19.72 in December 2020. Over subsequent quarters, the ratio fluctuated without a clear directional trend, moving between a low of 14.42 in March 2025 and highs around 20.66 in December 2020 and 19.84 in September 2024. These variations suggest some inconsistency in collection efficiency.

Overall, the data implies that while premium income has generally increased, the receivables associated with these premiums have also grown, and collection efficiency has experienced irregular fluctuations. This pattern may warrant further analysis to ensure that rising receivables do not adversely impact liquidity and that collection processes remain effective.

Benefit Expense Trend

The benefit expense shows an overall upward trend from March 31, 2020, to March 31, 2025. Starting at approximately 21,489 million US dollars, it experienced fluctuations in certain quarters but generally increased, reaching a projected 35,312 million US dollars by March 31, 2025. Notably, the expense peaked around the end of 2023 and early 2024, followed by a slight reduction in the subsequent quarters before rising again towards the end of the period. This pattern indicates consistent growth in benefit expenses over the analyzed timeframe.

Medical Claims Payable Evolution

Medical claims payable also exhibit a consistent increase throughout the observed period. Beginning at 9,902 million US dollars in March 2020, the figure steadily grew, reaching 16,812 million US dollars by March 2025. Some quarters show marginal decreases, such as in late 2024, but the general trend is upward. The steady rise in medical claims payable aligns with the increase in benefit expenses, suggesting higher claim activity or cost inflation over time.

Payables Turnover Ratio Analysis

The payables turnover ratio, available from September 2020 onward, remains relatively stable with minor fluctuations. Initially measured at 7.75 times, it slightly declined to around 7.3 times by December 2020 and fluctuated between 7.3 and 7.6 times through 2021. From 2022 onwards, the ratio showed a gradual increase, peaking above 8.0 times in late 2024 before a modest decline to 7.87 times by March 2025. This indicates a generally consistent efficiency in payable management, with some improvement in turnover speed during the later period.

Overall Insights

The data reflects a growth phase for both benefit expenses and medical claims payable, which may be linked to expansion, increased utilization, or cost pressures. The stable to slightly improving payables turnover ratio suggests effective management of liabilities despite rising expenses. Continued monitoring of these items will be essential to understand cost drivers and maintain operational efficiency.

The working capital exhibits fluctuating behavior over the observed quarters. Initially, there is an increase from $14,217 million in March 2020 to a peak of $19,746 million in March 2021, followed by a decline and periodic variation around values between approximately $14,000 million and $20,000 million in subsequent periods. Notably, from March 2023 to June 2024, the working capital demonstrates more stability, remaining mostly above $16,000 million and occasionally surpassing the $20,000 million mark, before slightly declining toward the end of the timeline.

Premiums exhibit a consistent upward trend throughout the entire period analyzed. Starting at $25,517 million in March 2020, premiums steadily increase quarter over quarter, reaching $40,887 million by March 2025. Although some quarters show minor slowdowns or marginal decreases, the overall direction is one of sustained growth, with a more pronounced acceleration observed after 2022.

Working capital turnover ratios are only available starting from the fourth quarter of 2020. From that point onward, the ratio generally trends upward with a few fluctuations. The ratio rises from 6.39 in December 2020 to a peak of 9.11 in December 2022, indicating increased efficiency in the use of working capital over time. After the peak, the ratio experiences a decline to as low as 6.87 in September 2024 but recovers somewhat toward the end of the period, ending at 8.11 in March 2025. This suggests variability in operational efficiency but an overall improvement compared to the initial reported values.

Working Capital

Shows cyclical behavior with initial growth peaking in early 2021, followed by fluctuations and moderate stability at higher levels from 2023 onward.

Premiums

Demonstrates a clear, continuous upward trend with significant growth across all quarters, indicating expanding business volume or pricing adjustments.

Working Capital Turnover

Reflects improving efficiency in utilizing working capital up to late 2022, then some variability with a recovery trend at the end of the period.

Overall, the data suggests strong growth in premium generation accompanied by generally effective management of working capital, despite some fluctuations. The upward trajectory of the working capital turnover ratio until late 2022 indicates enhanced operational effectiveness, with the subsequent variability calling for closer monitoring of capital utilization efficiency in the most recent quarters.

Receivables Turnover Ratio

The receivables turnover ratio exhibits variability over the reported periods, with values ranging approximately between 14.42 and 20.66. The ratio saw an increase from about 19.72 in early 2020 to a peak around 20.66 by March 2022, indicating an improvement in the efficiency of collections during that time. Subsequently, the ratio fluctuated, dipping to lower values such as 14.42 by March 2025. The overall trend suggests periods of enhanced collection efficiency interspersed with declines, indicating some inconsistency in the rate at which receivables are converted to cash.

Average Receivable Collection Period

The average collection period shows an inverse relationship to the receivables turnover ratio, as expected. It ranges mostly between 18 and 25 days. Early on, from March 2020 to early 2022, the period generally remained steady around 18 to 22 days, reflecting a consistent collection timeframe. However, towards the end of the timeline, particularly in 2024 and into early 2025, there is a noticeable increase reaching up to 25 days. This suggests a lengthening in the time taken to collect receivables, which aligns with the observed decreases in the receivables turnover ratio during the same period.

Overall Insights

The data indicates that while there were phases of efficient receivables management, as evidenced by higher turnover ratios and shorter collection periods, the recent trend points to a decline in collection efficiency. The extension of the collection period and corresponding drop in turnover towards the latest periods may signal emerging challenges in receivables management or changes in credit policy or customer payment behavior. Continuous monitoring is recommended to address potential liquidity impacts and to develop strategies aimed at improving cash conversion cycles.

Payables Turnover

The payables turnover ratio exhibits relative stability over the observed periods, generally fluctuating between 7.3 and 8.17. Starting from a recorded value of 7.75 in March 2020, it experienced a slight dip around mid-2020 to approximately 7.3. From late 2020 onwards, the ratio shows a moderate upward trend, peaking at 8.17 in the third quarter of 2024. Toward the final quarter, it marginally decreases to 7.87 but remains above the initial values.

This pattern suggests consistent management of accounts payable, with a slight improvement in the efficiency of payment processes in more recent periods.

Average Payables Payment Period

The average payables payment period, expressed in days, remains mostly within the 45 to 50-day range throughout the periods analyzed. It starts at 47 days in March 2020, rises modestly to 50 days in mid-2020, and maintains around this level through 2021 and 2022.

From 2023 onwards, there is a slight downward trend, with the payment period reducing gradually to 45 days by late 2024. The figure remains generally steady around 45-48 days until the end of the period, indicating a modest improvement in payment speed.

This decreasing trend suggests that the company may be accelerating its payments to suppliers, which could contribute to stronger supplier relationships or reflect improved cash flow management.

Overall Analysis

Both metrics together imply stable and slightly improving payment practices over the time frame examined. The increase in payables turnover alongside the reduction in days payable outstanding indicates more efficient management of payables, reflecting potentially enhanced operational liquidity and supplier engagement.

There are no abrupt or volatile changes, suggesting consistent financial control and predictable payment behavior.