Elevance Health Inc. (NYSE:ELV)

The analysis of the annual financial data over the five-year period reveals several notable trends in the company's asset management.

Current Assets

The value of current assets demonstrates a consistent upward trend from 45,751 million US dollars at the end of 2020 to a peak of 60,029 million US dollars in 2023. This represents a cumulative increase of approximately 31%. However, a slight decline is observed in 2024, where current assets decrease to 58,942 million US dollars, indicating a marginal contraction in the most recent year.

Adjusted Current Assets

Adjusted current assets similarly exhibit steady growth from 46,325 million US dollars in 2020 to 61,269 million US dollars in 2023. This upward trajectory mirrors that of the unadjusted current assets, with a slightly higher magnitude. A minor reduction occurs in 2024, with adjusted current assets decreasing to 60,625 million US dollars, closely reflecting the pattern seen in the unadjusted figures.

Overall, the data indicates strong asset accumulation during the first four years, reflecting potential expansion in liquidity or operational scale. The slight decrease in both current and adjusted current assets in 2024 may warrant further investigation to determine causes such as asset reallocation, divestitures, or liquidity management adjustments. The close alignment between current and adjusted current assets suggests consistency in the measures used to evaluate asset levels over time.

Total Assets

The total assets of the company exhibit a consistent upward trajectory over the five-year period. Starting at approximately $86.6 billion in 2020, total assets increased steadily each year, reaching around $116.9 billion by the end of 2024. This represents a cumulative increase of roughly 35% over the period, indicating a growing asset base and potentially reflecting expansion or acquisition activities.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, beginning at about $87.2 billion in 2020. This figure also rose consistently each year, reaching approximately $118.4 billion by the end of 2024. The adjusted values are consistently slightly higher than the reported total assets, suggesting adjustments made to asset valuations or other relevant accounting considerations. The increases in adjusted total assets mirror those seen in total assets, reinforcing the trend of growth in the company's asset base.

Total Liabilities

The total liabilities exhibit a consistent upward trend over the five-year period. Starting at 53,416 million USD in 2020, total liabilities increased to 75,463 million USD by the end of 2024. This represents a steady year-on-year rise, indicating growing obligations or financial leverage within the company.

Adjusted Total Liabilities

Adjusted total liabilities follow a similar pattern to total liabilities, increasing from 51,397 million USD in 2020 to 73,315 million USD in 2024. The adjusted figures remain consistently lower than total liabilities across all years, suggesting that certain liabilities are excluded or modified under the adjustment methodology.

Trend Analysis

Both liability measures show a sustained upward trend, with total liabilities rising by approximately 41.2% over the period and adjusted total liabilities increasing by approximately 42.6%. The parallel movement between the two sets of liabilities indicates proportional changes in the components excluded in the adjusted figures. This consistent increase may reflect expansion activities, increased financing, or growing operational commitments.

Shareholders’ Equity

The shareholders' equity demonstrates a consistent upward trend over the five-year period. Starting from approximately 33,199 million USD at the end of 2020, it increased steadily each year, reaching 41,315 million USD by the end of 2024. This represents a growth of about 24.5% over the period, indicating strengthened financial position and accumulation of retained earnings or capital.

Adjusted Total Equity

The adjusted total equity also shows a general increasing pattern, although there is a slight dip observed between 2021 and 2022. The value rose from 35,792 million USD in 2020 to a peak of 39,670 million USD in 2021, then decreased marginally to 39,255 million USD in 2022. After this, it resumed an upward trajectory, reaching 45,051 million USD by 2024. Overall, this reflects an approximate 25.8% increase from 2020 to 2024, evidencing growth while highlighting a short-term fluctuation during the period.

Comparative Analysis

Both shareholders’ equity and adjusted total equity increased notably over the five years, with adjusted total equity consistently higher than shareholders’ equity. This suggests that adjustments made to equity—for example, to include other comprehensive income or other factors—add value or provide a more comprehensive view of the equity position. The slight decline in adjusted total equity in 2022, in contrast to the steady increase in shareholders’ equity, may indicate a revaluation or adjustment affecting the broader equity measure during that year.

Total Reported Debt

The total reported debt demonstrates a consistent upward trend over the considered period. Beginning at $20,035 million in 2020, it increased annually to reach $31,232 million by 2024. The growth rate is steady, with a notable acceleration between 2023 and 2024, indicating a significant increase in borrowing or liabilities during the most recent year.

Shareholders’ Equity

Shareholders’ equity also shows a steady increase, rising from $33,199 million in 2020 to $41,315 million in 2024. The growth is relatively smooth, with no abrupt changes, suggesting a consistent improvement in net assets attributable to equity holders.

Total Reported Capital

Total reported capital, the sum of debt and equity, naturally rises in line with the increases in both components. Starting at $53,234 million in 2020, it grew to $72,547 million in 2024. The growth trend mirrors that of total debt and equity, with a marked increase in the final year, reflecting the combined impact of rising debt and equity levels.

Adjusted Total Debt

Adjusted total debt follows a pattern similar to total reported debt, starting at $20,992 million in 2020 and increasing steadily to $32,043 million in 2024. The adjusted figures are consistently higher than the reported debt, indicating possible adjustments for items such as off-balance-sheet liabilities or other debt-related considerations.

Adjusted Total Equity

Adjusted total equity increases from $35,792 million in 2020 to $45,051 million in 2024. Unlike the reported equity figures, adjusted equity shows a slight dip in 2022 before resuming its upward trajectory. This suggests that adjustments to equity may include items that caused a temporary reduction in net equity during that year.

Adjusted Total Capital

Adjusted total capital, representing the sum of adjusted debt and adjusted equity, rises from $56,784 million in 2020 to $77,094 million in 2024. The growth is incremental, with a minor plateau in 2022 and 2023 before a more pronounced increase in 2024. This measure reflects the overall expansion of the company’s capital base when adjusted for certain financial considerations.

Shareholders’ Net Income

The shareholders’ net income demonstrated an overall upward trend from 2020 through 2021, increasing from 4,572 million US dollars to 6,104 million US dollars. This peak was followed by a slight decline in 2022, where income decreased marginally to 6,025 million US dollars. The figures remained relatively stable in the subsequent years, with a minor decrease to 5,987 million in 2023 and a further slight reduction to 5,980 million in 2024. This pattern suggests a period of growth until 2021, thereafter stabilizing with slight decreases over the last two years.

Adjusted Net Income

The adjusted net income exhibited more volatility compared to shareholders’ net income. From 4,541 million US dollars in 2020, it rose sharply to a peak of 6,209 million in 2021. However, a significant decline occurred in 2022, with adjusted net income falling to 3,800 million, representing a substantial reduction. The income then rebounded strongly in 2023, reaching 6,742 million, the highest in the period analyzed. In 2024, it decreased again but remained elevated at 6,207 million. This pattern indicates significant fluctuations in adjusted earnings, with notable volatility in the middle years.

Comparative Insights

While shareholders’ net income maintained relative steadiness after peaking in 2021, adjusted net income showed marked instability with sharp declines and subsequent recoveries. The divergence between these two income measures in 2022 suggests that non-recurring items or adjustments had a considerable impact during that year. The recovery in adjusted net income in 2023 and its high level in 2024 may reflect improved operational performance or favorable adjustments compared to the previous dip. The general trend points to a stable underlying profitability as reflected by shareholders’ net income, contrasted by fluctuating adjusted results likely influenced by exceptional or non-operational factors.