Stock Analysis on Net
Stock Analysis on Net

Anthem Inc. (NYSE:ANTM)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Anthem Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 1.39 1.33 1.28 1.26 1.29
Adjusted 1.39 1.32 1.25 1.24 1.27
Liquidity Ratio
Current Ratio
Reported 1.55 1.65 1.56 1.55 1.61
Adjusted 1.57 1.67 1.59 1.59 1.64
Solvency Ratios
Debt to Equity
Reported 0.60 0.63 0.67 0.75 0.63
Adjusted 0.58 0.60 0.65 0.71 0.58
Debt to Capital
Reported 0.38 0.39 0.40 0.43 0.39
Adjusted 0.37 0.38 0.39 0.42 0.37
Financial Leverage
Reported 2.61 2.44 2.51 2.66 2.59
Adjusted 2.42 2.26 2.35 2.49 2.33
Profitability Ratios
Net Profit Margin
Reported 3.78% 4.66% 4.11% 4.31% 2.93%
Adjusted 3.91% 5.32% 3.54% 3.33% 3.01%
Return on Equity (ROE)
Reported 13.77% 15.15% 13.14% 14.50% 9.84%
Adjusted 13.14% 15.93% 10.39% 10.23% 8.92%
Return on Assets (ROA)
Reported 5.28% 6.21% 5.24% 5.45% 3.79%
Adjusted 5.42% 7.04% 4.42% 4.11% 3.82%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anthem Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Anthem Inc.’s adjusted current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Anthem Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Anthem Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Anthem Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Anthem Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Anthem Inc.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Anthem Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Anthem Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Operating revenue 120,808  103,141  91,341  89,061  84,194 
Total assets 86,615  77,453  71,571  70,540  65,083 
Activity Ratio
Total asset turnover1 1.39 1.33 1.28 1.26 1.29
Adjusted
Selected Financial Data (US$ in millions)
Operating revenue 120,808  103,141  91,341  89,061  84,194 
Adjusted total assets2 87,189  77,978  73,128  72,083  66,286 
Activity Ratio
Adjusted total asset turnover3 1.39 1.32 1.25 1.24 1.27

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= 120,808 ÷ 86,615 = 1.39

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= 120,808 ÷ 87,189 = 1.39

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anthem Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 45,751  39,033  34,321  36,263  34,315 
Current liabilities 29,453  23,617  21,965  23,356  21,294 
Liquidity Ratio
Current ratio1 1.55 1.65 1.56 1.55 1.61
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 46,325  39,558  34,926  37,024  34,846 
Current liabilities 29,453  23,617  21,965  23,356  21,294 
Liquidity Ratio
Adjusted current ratio3 1.57 1.67 1.59 1.59 1.64

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 45,751 ÷ 29,453 = 1.55

2 Adjusted current assets. See details »

3 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 46,325 ÷ 29,453 = 1.57

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Anthem Inc.’s adjusted current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 20,035  20,085  19,211  19,932  15,727 
Shareholders’ equity 33,199  31,728  28,541  26,503  25,100 
Solvency Ratio
Debt to equity1 0.60 0.63 0.67 0.75 0.63
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 20,992  20,725  20,163  20,714  16,398 
Adjusted shareholders’ equity3 35,979  34,480  31,106  28,990  28,411 
Solvency Ratio
Adjusted debt to equity4 0.58 0.60 0.65 0.71 0.58

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 20,035 ÷ 33,199 = 0.60

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 20,992 ÷ 35,979 = 0.58

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Anthem Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Capital

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 20,035  20,085  19,211  19,932  15,727 
Total capital 53,234  51,813  47,752  46,435  40,827 
Solvency Ratio
Debt to capital1 0.38 0.39 0.40 0.43 0.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 20,992  20,725  20,163  20,714  16,398 
Adjusted total capital3 56,971  55,205  51,269  49,704  44,810 
Solvency Ratio
Adjusted debt to capital4 0.37 0.38 0.39 0.42 0.37

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,035 ÷ 53,234 = 0.38

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 20,992 ÷ 56,971 = 0.37

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Anthem Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 86,615  77,453  71,571  70,540  65,083 
Shareholders’ equity 33,199  31,728  28,541  26,503  25,100 
Solvency Ratio
Financial leverage1 2.61 2.44 2.51 2.66 2.59
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 87,189  77,978  73,128  72,083  66,286 
Adjusted shareholders’ equity3 35,979  34,480  31,106  28,990  28,411 
Solvency Ratio
Adjusted financial leverage4 2.42 2.26 2.35 2.49 2.33

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 86,615 ÷ 33,199 = 2.61

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 87,189 ÷ 35,979 = 2.42

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Anthem Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,572  4,807  3,750  3,843  2,470 
Operating revenue 120,808  103,141  91,341  89,061  84,194 
Profitability Ratio
Net profit margin1 3.78% 4.66% 4.11% 4.31% 2.93%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,728  5,492  3,232  2,965  2,535 
Operating revenue 120,808  103,141  91,341  89,061  84,194 
Profitability Ratio
Adjusted net profit margin3 3.91% 5.32% 3.54% 3.33% 3.01%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Operating revenue
= 100 × 4,572 ÷ 120,808 = 3.78%

2 Adjusted net income. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Operating revenue
= 100 × 4,728 ÷ 120,808 = 3.91%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Anthem Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,572  4,807  3,750  3,843  2,470 
Shareholders’ equity 33,199  31,728  28,541  26,503  25,100 
Profitability Ratio
ROE1 13.77% 15.15% 13.14% 14.50% 9.84%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,728  5,492  3,232  2,965  2,535 
Adjusted shareholders’ equity3 35,979  34,480  31,106  28,990  28,411 
Profitability Ratio
Adjusted ROE4 13.14% 15.93% 10.39% 10.23% 8.92%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 4,572 ÷ 33,199 = 13.77%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 4,728 ÷ 35,979 = 13.14%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Anthem Inc.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,572  4,807  3,750  3,843  2,470 
Total assets 86,615  77,453  71,571  70,540  65,083 
Profitability Ratio
ROA1 5.28% 6.21% 5.24% 5.45% 3.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,728  5,492  3,232  2,965  2,535 
Adjusted total assets3 87,189  77,978  73,128  72,083  66,286 
Profitability Ratio
Adjusted ROA4 5.42% 7.04% 4.42% 4.11% 3.82%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,572 ÷ 86,615 = 5.28%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,728 ÷ 87,189 = 5.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Anthem Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.