Analysis of Debt
Total Debt (Carrying Amount)
Elevance Health Inc., balance sheet: debt
US$ in millions
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).
The reported debt data reveal several significant trends over the five-year period from 2020 to 2024. Overall, the total carrying amount of debt shows a clear upward trajectory, steadily increasing from approximately 20.0 billion US dollars at the end of 2020 to over 31.2 billion US dollars by the end of 2024. This indicates a notable expansion in the company's indebtedness during this timeframe.
- Short-term borrowings
- These borrowings appear absent or negligible at the end of 2020, followed by a rise to 275 million US dollars in 2021. Subsequently, the short-term borrowings slightly decreased to 265 million in 2022, then tapered further to 225 million in 2023, before increasing again to 365 million in 2024. While the fluctuations are moderate, the increase in 2024 suggests a renewed reliance on short-term financing.
- Current portion of long-term debt
- This category exhibits a pronounced increase from 700 million in 2020 to 1.6 billion in 2021. The amount then remains relatively stable around 1.5 to 1.65 billion through 2022 to 2024. The sharp rise between 2020 and 2021 indicates a significant reclassification or maturity of long-term debt portions becoming current, but it stabilizes thereafter, indicating a steady level of short-term maturities of long-term borrowings.
- Long-term debt, less current portion
- The long-term debt net of the current portion shows consistent growth year-over-year, increasing from approximately 19.3 billion in 2020 to over 29.2 billion in 2024. The growth is gradual but steady, with notable increments each year, reflecting either additional borrowings or refinancing that has extended maturities beyond the short-term horizon.
- Total debt (carrying amount)
- The total debt figure encapsulates the combined trends of short-term borrowings, current portion of long-term debt, and long-term debt less the current portion. This total rises substantially—from about 20.0 billion in 2020 to 31.2 billion in 2024—demonstrating a substantial increase in the overall debt burden. The increase is representative of both increased long-term liabilities and the fluctuating short-term debt components.
In summary, the data indicate a strategic increase in leverage, with the company expanding its long-term debt and also managing a considerable and somewhat stable amount of current portions of long-term obligations. The fluctuations in short-term borrowings suggest occasional shifts in liquidity or working capital management. The overall pattern suggests a deliberate increase in debt capacity, potentially to support growth initiatives or capital expenditures, while maintaining a sizable portion of debt maturing within the short term.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term borrowings | 365) |
| Commercial paper | —) |
| Notes | 28,460) |
| Convertible debentures | —) |
| Total debt (fair value) | 28,825) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.39%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.43% | 365) | 16) | |
| 2.38% | 1,250) | 30) | |
| 5.35% | 399) | 21) | |
| 1.50% | 749) | 11) | |
| 4.50% | 349) | 16) | |
| 4.90% | 499) | 24) | |
| 3.65% | 1,596) | 58) | |
| 4.10% | 1,238) | 51) | |
| 2.88% | 822) | 24) | |
| 5.15% | 601) | 31) | |
| 2.25% | 1,075) | 24) | |
| 4.75% | 731) | 35) | |
| 2.55% | 971) | 25) | |
| 4.95% | 726) | 36) | |
| 4.10% | 596) | 24) | |
| 5.50% | 635) | 35) | |
| 4.75% | 973) | 46) | |
| 5.38% | 992) | 53) | |
| 5.95% | 335) | 20) | |
| 5.20% | 1,151) | 60) | |
| 5.85% | 397) | 23) | |
| 6.38% | 364) | 23) | |
| 5.80% | 115) | 7) | |
| 4.63% | 860) | 40) | |
| 4.65% | 975) | 45) | |
| 4.65% | 768) | 36) | |
| 5.10% | 548) | 28) | |
| 4.38% | 1,389) | 61) | |
| 4.55% | 840) | 38) | |
| 3.70% | 813) | 30) | |
| 3.13% | 988) | 31) | |
| 3.60% | 1,234) | 44) | |
| 4.55% | 689) | 31) | |
| 6.10% | 742) | 45) | |
| 5.13% | 1,084) | 56) | |
| 4.85% | 247) | 12) | |
| 5.65% | 985) | 56) | |
| 5.70% | 1,327) | 76) | |
| 5.85% | 789) | 46) | |
| 9.00% | 25) | 2) | |
| Total | 31,232) | 1,371) | |
| 4.39% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,371 ÷ 31,232 = 4.39%