Elevance Health Inc. (NYSE:ELV)

Current assets and adjusted current assets for the period exhibited an overall upward trend. However, the rate of increase varied across the years examined. A slight deceleration in growth was observed in the most recent year.

Overall Trend

Both current assets and adjusted current assets increased from 2021 to 2025. Current assets grew from US$51,122 million to US$63,001 million, representing a cumulative increase of approximately 23.4%. Adjusted current assets demonstrated a similar pattern, rising from US$51,962 million to US$64,822 million, a cumulative increase of roughly 24.8%.

Growth Rate Analysis

The growth in adjusted current assets outpaced that of current assets in each year. The difference between the two values widened over time, suggesting increasing adjustments to the reported current asset figures. The largest absolute increase in current assets occurred between 2022 and 2023 (US$4,412 million), while the largest absolute increase in adjusted current assets also occurred between 2022 and 2023 (US$4,688 million).

Growth slowed between 2023 and 2024 for both metrics. Current assets decreased by US$1,087 million, while adjusted current assets decreased by US$644 million. This represents the only period of decline within the examined timeframe. Growth resumed between 2024 and 2025, though at a lower rate than previously observed.

Adjustment Impact

The consistent difference between current assets and adjusted current assets indicates ongoing adjustments are being made. The adjustment amount increased from US$840 million in 2021 to US$1,821 million in 2025. This suggests that the nature or magnitude of these adjustments is evolving. Further investigation into the specific adjustments would be necessary to understand the underlying drivers.

In summary, the company experienced growth in both reported and adjusted current assets over the five-year period. However, a slowdown in growth and a widening gap between the two metrics were observed in the most recent years, warranting further scrutiny.

Total assets and adjusted total assets for the period demonstrate consistent growth. Both metrics increased annually from 2021 through 2025. However, a consistent difference exists between the reported total assets and the adjusted total assets, suggesting systematic adjustments are being made to the initially reported figures.

Overall Growth

Total assets increased from US$97,460 million in 2021 to US$121,494 million in 2025, representing a cumulative growth of approximately 24.6%. Adjusted total assets exhibited a similar growth pattern, rising from US$98,197 million in 2021 to US$123,017 million in 2025, a cumulative increase of roughly 25.3%.

Year-over-Year Changes

The year-over-year growth in total assets decelerated slightly over the period. The largest percentage increase occurred between 2021 and 2022 (5.5%), while the smallest occurred between 2024 and 2025 (4.7%). Adjusted total assets mirrored this trend, with the highest growth between 2021 and 2022 (6.0%) and the lowest between 2024 and 2025 (4.8%).

Adjustment Variance

The difference between total assets and adjusted total assets remained relatively stable across the observed period, generally ranging between US$700 million and US$800 million annually. This indicates a consistent application of the adjustment methodology. The adjustments consistently increase the reported total asset value.

The consistent upward trend in both total assets and adjusted total assets suggests a period of expansion. The consistent adjustments warrant further investigation to understand the nature of these modifications and their impact on the overall financial position.

Total liabilities and adjusted total liabilities for the period exhibited consistent growth from 2021 to 2025. However, a notable difference exists between the reported total liabilities and the adjusted figures each year, suggesting the presence of specific adjustments impacting the overall liability position.

Overall Growth

Total liabilities increased from US$61,332 million in 2021 to US$77,468 million in 2025, representing a cumulative growth of approximately 26.3%. Adjusted total liabilities followed a similar trajectory, rising from US$58,527 million in 2021 to US$75,358 million in 2025, a cumulative increase of roughly 28.7%.

Year-over-Year Changes

The largest year-over-year increase in total liabilities occurred between 2023 and 2024, with an addition of US$5,940 million. The increase between 2024 and 2025 was comparatively smaller, at US$2,105 million. Adjusted total liabilities mirrored this pattern, with the most substantial increase also occurring between 2023 and 2024 (US$5,960 million) and a more moderate increase between 2024 and 2025 (US$2,043 million).

Adjustment Impact

The difference between total liabilities and adjusted total liabilities varied annually. In 2021, the adjustment reduced reported liabilities by US$2,805 million. This difference widened to US$2,034 million in 2022, then to US$2,000 million in 2023. The gap narrowed slightly to US$2,148 million in 2024 and further to US$2,110 million in 2025. The consistent presence of this adjustment suggests recurring items are being reclassified or removed from the total liability calculation.

The growth rates of both total and adjusted liabilities remained positive throughout the observed period. The consistent adjustment to total liabilities warrants further investigation to understand the nature of these adjustments and their potential impact on the company’s financial position and risk profile.

Shareholders’ equity exhibited a generally increasing trend over the five-year period, while adjusted total equity demonstrated a more pronounced and consistent growth pattern. A comparison of the two equity measures reveals a systematic difference throughout the observed timeframe.

Shareholders’ Equity Trend

Shareholders’ equity increased from US$36,060 million in 2021 to US$36,307 million in 2022, representing a modest increase. Further growth was observed through 2023, reaching US$39,306 million, followed by US$41,315 million in 2024, and culminating in US$43,882 million in 2025. The rate of increase appears to accelerate in the later years of the period.

Adjusted Total Equity Trend

Adjusted total equity began at US$39,670 million in 2021. A slight decrease to US$39,255 million was noted in 2022. Subsequent years show consistent increases, with values of US$42,387 million, US$45,051 million, and US$47,658 million reported for 2023, 2024, and 2025, respectively. The growth in adjusted total equity is consistently higher than the growth in shareholders’ equity.

Difference Between Equity Measures

In each year, adjusted total equity is greater than shareholders’ equity. The difference between the two measures varied between approximately US$3,600 million in 2021 and US$4,000 million in 2025. This consistent difference suggests the adjustments being made to arrive at adjusted total equity are material and represent a significant component of overall equity.

The consistent divergence between shareholders’ equity and adjusted total equity warrants further investigation to understand the nature of the adjustments and their impact on the overall financial position. The accelerating growth in both equity measures, particularly adjusted total equity, suggests positive developments within the company’s financial structure.

Over the five-year period ending December 31, 2025, both reported and adjusted financial figures demonstrate consistent growth. However, notable differences exist between the reported and adjusted values, suggesting the impact of specific accounting adjustments to the capitalization structure. Total reported debt increased steadily from US$23,031 million in 2021 to US$32,046 million in 2025, while adjusted total debt exhibited a similar upward trajectory, reaching US$32,706 million in 2025. Shareholders’ equity also increased over the period, from US$36,060 million to US$43,882 million reported, and from US$39,670 million to US$47,658 million adjusted.

Total Capital

Total reported capital increased from US$59,091 million in 2021 to US$75,928 million in 2025, representing a cumulative increase of approximately 28.5%. Adjusted total capital also rose, moving from US$63,698 million to US$80,364 million over the same period, a cumulative increase of roughly 26.2%. The difference between reported and adjusted capital widened over time, indicating a growing impact from the adjustments made to the capitalization structure.

Debt and Equity Adjustments

The adjustments to total debt were relatively modest in the earlier years (2021-2023), with adjusted debt consistently lower than reported debt by approximately US$1,000 million. However, in 2024 and 2025, the adjustments to debt became more pronounced, with adjusted debt nearly mirroring reported debt. The adjustments to shareholders’ equity show a different pattern. Adjusted equity began higher than reported equity in 2021, but fell below reported equity in 2022, before rising above it again in 2023 and continuing to exceed reported equity through 2025. This suggests the adjustments initially decreased equity, but subsequently increased it.

Capital Structure Composition

The proportion of debt within total capital remained relatively stable. In 2021, reported debt constituted approximately 39.0% of total capital, while adjusted debt represented approximately 37.7%. By 2025, these percentages were 42.2% and 43.2% respectively. This indicates a slight increase in the relative contribution of debt to the capital structure, though the change is not substantial. The adjustments to equity appear to have a more significant impact on the overall capital structure composition, particularly in the later years of the period.

In summary, the financial figures demonstrate a pattern of growth in both reported and adjusted values. The adjustments to the capitalization structure, while not dramatically altering the overall trends, have a noticeable impact on the reported equity and total capital figures, and a growing impact on the reported debt. Further investigation into the nature of these adjustments would be necessary to fully understand their implications.

Shareholders’ net income exhibited a slight decline over the five-year period, decreasing from US$6,104 million in 2021 to US$5,662 million in 2025. However, adjusted net income demonstrates a more volatile pattern, with significant fluctuations year-over-year.

Overall Trend - Adjusted Net Income

Adjusted net income began at US$6,209 million in 2021, experienced a substantial decrease to US$3,800 million in 2022, and then increased significantly to US$6,742 million in 2023. Following this peak, adjusted net income decreased slightly to US$6,207 million in 2024 and remained relatively stable at US$6,225 million in 2025.

The divergence between shareholders’ net income and adjusted net income suggests the presence of notable non-recurring items or accounting adjustments impacting the reported earnings. The large drop in adjusted net income in 2022, followed by a substantial recovery in 2023, warrants further investigation to understand the nature and magnitude of these adjustments.

Comparison of Net Income Measures

In 2021, adjusted net income exceeded shareholders’ net income by US$105 million. This difference widened considerably in 2023, with adjusted net income surpassing shareholders’ net income by US$755 million. However, in 2022, shareholders’ net income was higher than adjusted net income by US$2,225 million, indicating significant downward adjustments were made to arrive at the adjusted figure.

The relative stability of shareholders’ net income, contrasted with the variability of adjusted net income, implies that the adjustments are not consistently applied or are related to specific, infrequent events. The trend in adjusted net income suggests potential volatility in underlying earnings that is not fully reflected in the consistently declining shareholders’ net income.

Recent Performance

Between 2024 and 2025, shareholders’ net income continued its downward trajectory, while adjusted net income remained largely unchanged. This suggests that the factors impacting shareholders’ net income are distinct from those being adjusted for in the calculation of adjusted net income.