Elevance Health Inc. (NYSE:ELV)

Over the period analyzed, the data reveals varying trends across different categories of property, plant, and equipment. The category of computer software, including both purchased and internally developed assets, shows a generally upward trajectory. The value increased from 5,247 million US dollars at the end of 2020 to 6,617 million US dollars by the end of 2024, with a minor dip observed in 2022 before resuming growth.

In contrast, computer equipment, furniture, and other equipment experienced fluctuations. Starting at 1,218 million US dollars in 2020, the value rose moderately to 1,314 million in 2021, then declined sharply to 828 million in 2022. A partial recovery followed in 2023, reaching 955 million, but the value slightly decreased again to 940 million in 2024.

Leasehold improvements depicted relatively stable values, beginning at 671 million in 2020 and exhibiting minor fluctuations around that level throughout the subsequent years. A modest increase can be observed from 641 million in 2021 to 744 million in 2024.

The categories of building and improvements, and land and improvements both present a declining trend. Building and improvements dropped significantly from 174 million in 2020 to just 27 million in 2024. Land and improvements decreased from 17 million to 1 million over the same period, maintaining the low value in the final three years.

Regarding total property and equipment on a gross basis, the value increased from 7,327 million in 2020 to 8,329 million in 2024, despite noticeable declines in certain asset categories. This overall growth suggests additions or reclassifications in other categories compensating for declines elsewhere.

Accumulated depreciation and amortization figures show variation, but the pattern is less straightforward. The balance was negative 3,844 million in 2020, increasing in magnitude to negative 4,340 million in 2021, then reversing sharply to negative 2,803 million in 2022. This was followed by increases in 2023 and 2024, reaching negative 3,677 million. These swings likely reflect changes in depreciation policies, asset disposals, or revaluations.

The net property and equipment value exhibits consistent growth over the period, rising from 3,483 million US dollars at the end of 2020 to 4,652 million by the end of 2024. This steady increase implies effective asset management and investment in property and equipment, offsetting depreciations and disposals.

Summary of Key Trends

- Computer software assets generally increased, reflecting investment in intangible property.

- Tangible equipment demonstrated volatility with a decline followed by partial recovery.

- Leasehold improvements remained relatively stable with a slight upward trend.

- Buildings and land assets significantly decreased, indicating possible disposals or reclassifications.

- Gross property and equipment values rose overall despite some category declines.

- Accumulated depreciation showed irregular changes suggesting active asset management.

- Net property and equipment steadily increased, signaling growth in the company’s asset base after accounting for depreciation.

Average Age Ratio

The average age ratio showed a notable decline from 52.59% at the end of 2020 to 39.38% in 2022, indicating a decrease in the proportion of used life compared to total useful life of the assets. Following this decline, it increased slightly to 44.85% in 2023 and then slightly decreased to 44.15% in 2024. This suggests a partial aging of the asset base after its apparent renewal period by 2022.

Estimated Total Useful Life

The estimated total useful life of the assets remained fairly stable around 11 to 12 years in 2020 and 2021, but then decreased substantially to 9 years starting from 2022 and stayed constant through 2024. This reduction implies a reassessment or update in asset longevity assumptions, potentially reflecting newer asset classes or changes in asset management strategy.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets remained constant at 6 years during 2020 and 2021. In 2022, it decreased to 4 years and remained at that level through 2024. This drop suggests acquisition of newer assets or a renewal of existing assets, lowering the average age of the company's property, plant, and equipment portfolio.

Estimated Remaining Life

The estimated remaining life of assets was relatively stable at 5 to 6 years. It was 5 years in 2020, increased to 6 years in 2021 and 2022, then dropped back to 5 years in 2023 and 2024. These fluctuations correspond closely with changes in total useful life and asset age, reflecting adjustments in asset lifespan expectations and the impact of asset renewal.

Property and Equipment, Gross

The gross value of property and equipment shows fluctuations over the analyzed periods. It increased from 7,327 million US dollars at the end of 2020 to 8,259 million in 2021, indicating an investment or acquisition phase. This was followed by a decrease to 7,119 million in 2022, which may suggest disposals or revaluation. Subsequently, a recovery is observed with the value rising to 7,903 million in 2023 and further to 8,329 million in 2024, suggesting renewed capital expenditures or asset additions.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization figures reflect a non-linear trend. An initial growth is observed from 3,844 million in 2020 to 4,340 million in 2021, consistent with aging assets or increased depreciation expense. However, a notable decline follows in 2022 to 2,803 million, which sharply contrasts the previous trend and may point to significant asset write-offs, disposals, changes in depreciation methods, or adjustments. The amounts then rise again in 2023 and 2024 to 3,544 million and 3,677 million, respectively, indicating resumed depreciation activity corresponding with asset holdings.

Land and Improvements

The value of land and improvements remains minimal and stable, holding steady at 17 million for 2020 and 2021, before drastically dropping to 1 million from 2022 through 2024. This could indicate a reclassification, impairment, or divestiture of land-related assets during this period.

Average Age Ratio

The average age ratio, expressed as a percentage, provides insight into the relative aging of the company’s property and equipment. It remains relatively stable at approximately 52.6% during 2020 and 2021 but then decreases significantly to 39.38% in 2022. This decline suggests a younger asset base, possibly due to asset replacement or additions of new assets. Following this, the ratio moderately increases to 44.85% in 2023 and slightly decreases to 44.15% in 2024, indicating a somewhat stabilizing asset age structure but still younger than the initial years.

Overall Observations

The data illustrate periods of asset growth and renewal, reflected both in gross property and equipment values and the average age ratio. The marked decrease in accumulated depreciation and amortization in 2022, alongside the reduction in land value and lower asset age ratio, suggests significant changes occurred in that year, likely involving asset disposals or accounting adjustments. The subsequent periods show recovery and stabilization, indicating continued capital investment and steady management of asset depreciation.

Property and Equipment, Gross

The gross value of property and equipment exhibited fluctuations over the five-year period. Starting at $7,327 million in 2020, there was a notable increase to $8,259 million in 2021, followed by a decline to $7,119 million in 2022. Subsequently, the value rose again in 2023 to $7,903 million and continued to grow moderately to $8,329 million in 2024. This pattern suggests a cycle of asset acquisitions and disposals or revaluations affecting the gross property and equipment amount.

Land and Improvements

The value of land and improvements remained relatively stable at $17 million in 2020 and 2021 but experienced a dramatic decrease to $1 million in 2022. This low level of $1 million in land and improvements persisted unchanged through 2023 and 2024. This substantial reduction may indicate the reclassification, disposal, or impairment of land assets during or before 2022.

Depreciation and Amortization of Property and Equipment

Depreciation and amortization expenses increased consistently over the five years. Beginning at $638 million in 2020, the expense rose to $668 million in 2021, then to $784 million in 2022, followed by increases to $872 million and $914 million in 2023 and 2024 respectively. This upward trend reflects higher depreciation charges, possibly due to increases in asset base or accelerated depreciation policies.

Estimated Total Useful Life

The estimated total useful life of property and equipment extended from 11 years in 2020 to 12 years in 2021, but then decreased to 9 years in 2022 and remained stable at that level through 2023 and 2024. The decreasing useful life implies a change in asset composition or a reassessment of asset longevity, potentially leading to higher annual depreciation expenses as reflected in the data.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization initially increased from 3844 million US dollars in 2020 to 4340 million in 2021, indicating a rise in the total depreciation recorded on property, plant, and equipment assets. However, there is a significant decline to 2803 million in 2022, followed by a gradual increase in the subsequent years, reaching 3677 million by 2024. This sharp drop in 2022 could suggest a reassessment or revaluation event, disposal of assets, or a change in accounting estimates.

Depreciation and Amortization Expense

Depreciation and amortization expense showed a consistent upward trend throughout the period. Beginning at 638 million US dollars in 2020, this expense increased steadily each year, reaching 914 million in 2024. The rise in annual depreciation expense suggests either increasing capital expenditures or changes in the composition and valuation of depreciable assets, leading to higher periodic charges.

Time Elapsed Since Purchase

The average age of assets, measured in years since purchase, remained stable at 6 years for 2020 and 2021, then decreased to 4 years from 2022 onward. This reduction in asset age implies recent acquisitions or asset replacements starting in 2022, which aligns with the observed increase in depreciation expense and may partly explain the irregularity in accumulated depreciation for that year.

Summary of Trends

The data indicates a transition in the property, plant, and equipment portfolio around 2022, characterized by a reduction in asset age and a notable adjustment in accumulated depreciation. The growing depreciation expense suggests ongoing investment in new assets or possibly shorter asset life expectations. These shifts may reflect strategic changes in asset management or investment focus during the observed timeframe.

Property and Equipment, Net

The net value of property and equipment shows a consistent upward trend over the analyzed periods. It increased from $3,483 million as of December 31, 2020, to $4,652 million by December 31, 2024, indicating ongoing investments or capital expenditures exceeding depreciation and disposals. The growth suggests an expansion or upgrade of fixed assets.

Land and Improvements

The reported value for land and improvements remained stable at $17 million in 2020 and 2021, but then sharply decreased to $1 million from 2022 onward, maintaining this minimal value through 2024. This significant drop may indicate a reclassification, sale, or impairment of land and related assets.

Depreciation and Amortization of Property and Equipment

There is a clear upward trend in depreciation and amortization expenses, rising from $638 million in 2020 to $914 million by 2024. This increasing expense aligns with the rising carrying value of property and equipment, reflecting ongoing asset additions and the aging of the asset base over time.

Estimated Remaining Life

The estimated remaining life of property and equipment fluctuated slightly across the periods, starting at 5 years in 2020, increasing to 6 years in 2021 and 2022, then returning to 5 years for 2023 and 2024. These minor changes suggest periodic reassessments of asset longevity possibly due to changes in asset mix, maintenance policies, or technological considerations.