Elevance Health Inc. (NYSE:ELV)

The financial ratios presented demonstrate varied trends over the five-year period. Generally, adjusted ratios exhibit slightly different patterns compared to their reported counterparts, suggesting the impact of specific adjustments made to the underlying financial figures. Asset turnover, liquidity, leverage, profitability, and returns are all examined below.

Asset Turnover

Both reported and adjusted total asset turnover ratios generally increased from 2021 to 2025. Reported turnover rose from 1.41 to 1.63, while the adjusted ratio increased from 1.39 to 1.61. A slight dip in reported turnover is observed in 2024, but it recovers in the final year. The adjusted ratio mirrors this pattern.

Liquidity

The reported and adjusted current ratios remained relatively stable between 2021 and 2023, fluctuating around 1.4. Both ratios experienced a slight increase in 2025, reaching 1.54 and 1.58 respectively. The adjusted current ratio consistently shows a marginally higher value than the reported ratio.

Leverage

Reported debt to equity and debt to capital ratios showed modest increases between 2021 and 2024, before decreasing slightly in 2025. The adjusted ratios follow a similar trend, consistently reporting lower values. Financial leverage, both reported and adjusted, remained relatively stable between 2.70 and 2.83 before decreasing to 2.77 and 2.63 respectively in 2025.

Profitability

Reported net profit margin experienced a consistent decline from 4.46% in 2021 to 2.87% in 2025. The adjusted net profit margin shows a more volatile pattern, with a significant decrease in 2022, followed by a recovery and a subsequent decline. The adjusted margin consistently differs from the reported margin, particularly in 2022.

Returns

Reported return on equity (ROE) and return on assets (ROA) both exhibited a downward trend from 2021 to 2025. ROE decreased from 16.93% to 12.90%, and ROA decreased from 6.26% to 4.66%. The adjusted ROE and ROA also show a decline, but the adjusted ROE demonstrates a more pronounced drop in 2022, followed by a substantial increase in 2023. The adjusted ROA shows a significant increase in 2023 as well, exceeding the reported ROA.

In summary, while most ratios demonstrate relatively stable or gradually changing trends, the adjusted ratios highlight the impact of specific accounting adjustments, particularly in profitability and returns. The divergence between reported and adjusted figures warrants further investigation to understand the nature and magnitude of these adjustments.

The adjusted total asset turnover ratio exhibited a generally increasing trend over the five-year period, though with some fluctuation. Operating revenue consistently increased year-over-year, while total assets also increased, but at a slightly slower pace. The adjusted total asset turnover ratio, calculated using adjusted total assets, provides a slightly different perspective than the reported ratio, but the overall trends align.

Adjusted Total Asset Turnover Trend

The adjusted total asset turnover ratio began at 1.39 in 2021. It increased to 1.50 in 2022, and continued to rise to 1.55 in 2023. A slight decrease was observed in 2024, with the ratio falling to 1.48. The ratio then increased again in 2025, reaching 1.61. This indicates a generally improving efficiency in utilizing assets to generate revenue, with a minor dip in 2024.

Comparison with Operating Revenue and Total Assets

Operating revenue increased from US$136,943 million in 2021 to US$197,584 million in 2025, representing a substantial overall growth. Total assets increased from US$97,460 million in 2021 to US$121,494 million in 2025. The adjusted total asset turnover ratio’s increase suggests that revenue growth outpaced the growth in adjusted total assets for most of the period, indicating improved asset utilization.

Relationship to Reported Total Asset Turnover

The reported total asset turnover ratio mirrored the trend of the adjusted ratio, starting at 1.41 in 2021 and reaching 1.63 in 2025. The values for both ratios remained relatively close throughout the period, suggesting that the adjustment to total assets did not significantly alter the overall interpretation of asset utilization efficiency. The slight differences observed may be attributable to the specific adjustments made to the total asset figure.

In summary, the company demonstrated increasing efficiency in generating revenue from its asset base, as evidenced by the upward trend in both the reported and adjusted total asset turnover ratios. The minor decrease in 2024 warrants further investigation, but the overall trajectory indicates positive performance in asset utilization.

The adjusted current ratio exhibited a generally stable pattern over the five-year period, with some fluctuation. Initial values indicate a slight increase followed by a period of relative stability, concluding with a noticeable improvement in the most recent year.

Adjusted Current Ratio - Overall Trend

The adjusted current ratio began at 1.49 in 2021. It decreased to 1.43 in 2022 before recovering to 1.47 in 2023. A further increase to 1.49 was observed in 2024, culminating in a value of 1.58 in 2025. This suggests a strengthening of the company’s ability to cover short-term liabilities with adjusted current assets over the period.

Comparison to Reported Current Ratio

The adjusted current ratio consistently remained slightly above the reported current ratio across all observed years. The difference between the two ratios was minimal, ranging from 0.02 to 0.04. This indicates that the adjustments made to current assets had a modest, but consistent, positive impact on the liquidity position as measured by this ratio.

Year-over-Year Changes

The largest year-over-year increase in the adjusted current ratio occurred between 2024 and 2025, with a change of 0.09. The most significant decrease was observed between 2021 and 2022, with a decline of 0.06. These fluctuations suggest varying degrees of short-term liquidity management and asset composition changes.

The observed trend in the adjusted current ratio suggests a generally healthy short-term liquidity position, with a recent improvement indicating enhanced capacity to meet short-term obligations. The consistent, albeit small, difference between the adjusted and reported ratios highlights the impact of the asset adjustments.

The adjusted debt to equity ratio exhibits a generally increasing trend over the five-year period, although with some fluctuation. Total debt consistently increased year-over-year, while shareholders’ equity also demonstrated growth, albeit at varying rates. The adjusted figures present a slightly different picture than the reported debt to equity ratio, suggesting adjustments are impacting the leverage assessment.

Adjusted Debt to Equity Ratio - Overall Trend

The adjusted debt to equity ratio began at 0.61 in 2021. It rose to 0.64 in 2022, then decreased slightly to 0.61 in 2023. A more pronounced increase was observed in 2024, reaching 0.71, before decreasing modestly to 0.69 in 2025. This indicates a growing reliance on debt financing relative to equity, particularly between 2023 and 2024, followed by a slight stabilization.

Debt and Equity Components

Adjusted total debt increased from US$24,028 million in 2021 to US$32,706 million in 2025, representing a cumulative increase of approximately 36.1%. Adjusted total equity also increased, moving from US$39,670 million in 2021 to US$47,658 million in 2025, a cumulative increase of roughly 20.1%. The faster growth of adjusted debt compared to adjusted equity contributes to the observed increase in the adjusted debt to equity ratio.

Comparison to Reported Debt to Equity

The reported debt to equity ratio generally mirrored the adjusted ratio’s trend, starting at 0.64 in 2021 and ending at 0.73 in 2025. However, the adjusted ratio consistently remained lower than the reported ratio throughout the period. This suggests that the adjustments made to total debt and equity are reducing the calculated leverage, potentially due to the exclusion of certain liabilities or the inclusion of specific equity components in the adjusted calculations.

The observed increases in both adjusted debt and adjusted equity suggest overall growth, but the proportionally larger increase in debt warrants continued monitoring. The difference between the reported and adjusted ratios highlights the importance of understanding the nature of the adjustments being made to assess the true financial leverage of the entity.

The information presents a five-year trend of debt and capital figures, culminating in adjusted debt-to-capital ratios. Total debt exhibits a consistent upward trajectory, increasing from US$23,031 million in 2021 to US$32,046 million in 2025. Total capital also demonstrates growth over the same period, rising from US$59,091 million to US$75,928 million. The reported debt-to-capital ratio fluctuates modestly, beginning at 0.39 in 2021, peaking at 0.43 in 2024, and settling at 0.42 in 2025.

Adjusted Debt to Capital – Overall Trend

The adjusted debt-to-capital ratio shows a relatively stable pattern over the five-year period. It begins at 0.38 in 2021, increases to 0.39 in 2022, decreases to 0.38 in 2023, and then rises to 0.42 in 2024 before decreasing slightly to 0.41 in 2025. This suggests a moderate level of financial leverage that remains fairly consistent despite increases in both adjusted debt and adjusted capital.

Adjusted total debt mirrors the trend of total debt, increasing from US$24,028 million in 2021 to US$32,706 million in 2025. Similarly, adjusted total capital increases from US$63,698 million in 2021 to US$80,364 million in 2025. The adjustments to both debt and capital appear to maintain a similar proportional relationship to their unadjusted counterparts, as evidenced by the close tracking of the reported and adjusted debt-to-capital ratios.

Year-over-Year Changes

From 2021 to 2022, both adjusted debt and adjusted capital increased, resulting in a slight increase in the adjusted debt-to-capital ratio. The period from 2022 to 2023 saw a minimal change in the ratio, with increases in both adjusted debt and capital largely offsetting each other. The most significant increase in the adjusted debt-to-capital ratio occurred between 2023 and 2024, driven by a larger proportional increase in adjusted debt. The final year, 2024 to 2025, shows a slight decrease in the ratio as adjusted capital growth outpaced adjusted debt growth.

In summary, the company demonstrates increasing levels of both debt and capital. The adjusted debt-to-capital ratio remains within a narrow range, indicating a generally stable capital structure. The largest shift in leverage occurred between 2023 and 2024, but the ratio stabilized in the final year of the observed period.

An examination of the financial information reveals trends in the company’s financial leverage, both as reported and as adjusted. Total assets exhibited a consistent upward trajectory over the five-year period, increasing from US$97,460 million in 2021 to US$121,494 million in 2025. Shareholders’ equity also increased, though at a more moderate pace, rising from US$36,060 million to US$43,882 million over the same timeframe.

Reported Financial Leverage

Reported financial leverage remained relatively stable, fluctuating between 2.70 and 2.83 over the period. It began at 2.70 in 2021, peaked at 2.83 in both 2022 and 2024, and concluded at 2.77 in 2025. This suggests a consistent, though not dramatically changing, relationship between total assets and shareholders’ equity as reported.

Adjusted Total Assets and Equity

Adjusted total assets followed a similar upward trend to reported total assets, moving from US$98,197 million in 2021 to US$123,017 million in 2025. Adjusted total equity also increased, starting at US$39,670 million in 2021 and reaching US$47,658 million in 2025. The adjusted figures generally exceed the reported figures for both assets and equity.

Adjusted Financial Leverage

Adjusted financial leverage demonstrated a pattern of initial increase followed by stabilization. It rose from 2.48 in 2021 to 2.64 in 2022, then fluctuated around the 2.60 level, ending at 2.58 in 2025. While showing some variation, the adjusted leverage ratio remained below the reported leverage ratio throughout the observed period. The difference between reported and adjusted leverage suggests that certain asset or equity items are treated differently in the adjusted calculation, resulting in a lower leverage figure.

In summary, the company experienced growth in both assets and equity. While reported financial leverage remained relatively constant, the adjusted financial leverage showed a slight initial increase followed by a period of relative stability at a lower level. The consistent difference between the reported and adjusted leverage ratios warrants further investigation into the nature of the adjustments being made.

The adjusted net profit margin exhibited considerable fluctuation over the five-year period. While operating revenue consistently increased, the adjusted net profit margin did not follow a corresponding upward trajectory.

Overall Trend

The adjusted net profit margin began at 4.53% in 2021, decreased significantly to 2.44% in 2022, then increased to 3.96% in 2023. A slight decrease to 3.54% was observed in 2024, followed by a further decline to 3.15% in 2025. This indicates volatility rather than a clear, sustained trend.

Year-over-Year Changes

The most substantial year-over-year change occurred between 2021 and 2022, with a decrease of 2.09 percentage points in the adjusted net profit margin. A significant recovery was then seen between 2022 and 2023, with an increase of 1.52 percentage points. The changes between 2023 and 2024, and 2024 and 2025 were comparatively smaller, at 0.42 and 0.39 percentage point decreases, respectively.

Relationship to Operating Revenue

Despite consistent growth in operating revenue – increasing from US$136,943 million in 2021 to US$197,584 million in 2025 – the adjusted net profit margin did not consistently benefit. The largest revenue increase occurred between 2024 and 2025 (US$22,380 million), yet this was accompanied by a decrease in the adjusted net profit margin. This suggests that revenue growth alone does not guarantee improved profitability, and that cost management or other factors are playing a significant role.

Comparison to Reported Net Profit Margin

The adjusted net profit margin consistently exceeded the reported net profit margin across all observed years. The difference between the two margins varied, but the adjustments consistently resulted in a higher profitability figure. This indicates that the adjustments made to net income have a material positive impact on the reported profitability of the entity.

In conclusion, the adjusted net profit margin demonstrates a pattern of instability, despite consistent revenue growth. Further investigation into the nature of the adjustments made to net income, as well as cost structures, is warranted to understand the underlying drivers of these fluctuations.

The adjusted return on equity (ROE) exhibited fluctuations over the five-year period. While shareholders’ net income generally decreased, shareholders’ equity consistently increased. The adjusted ROE, calculated using adjusted net income and adjusted total equity, presents a different picture than the reported ROE, suggesting the impact of certain adjustments on profitability metrics.

Adjusted ROE Trend

The adjusted ROE began at 15.65% in 2021, decreased significantly to 9.68% in 2022, then increased to 15.91% in 2023. A subsequent decline to 13.78% occurred in 2024, followed by a further decrease to 13.06% in 2025. This indicates volatility in profitability when considering the adjustments made to net income and total equity.

Relationship between Adjusted Net Income and Adjusted ROE

Adjusted net income decreased substantially from 2021 to 2022, coinciding with the largest drop in adjusted ROE during the observed period. While adjusted net income recovered in 2023, the adjusted ROE also increased. However, the adjusted net income remained relatively stable between 2023 and 2025, while the adjusted ROE decreased, suggesting other factors, such as equity growth, influenced the ratio.

Impact of Adjusted Total Equity

Adjusted total equity increased each year, from US$39,670 million in 2021 to US$47,658 million in 2025. This consistent growth in equity, coupled with relatively stable adjusted net income in the later years, likely contributed to the observed decline in adjusted ROE from 2023 to 2025. A larger equity base requires a greater level of net income to maintain the same ROE.

Comparison with Reported ROE

The reported ROE consistently declined from 16.93% in 2021 to 12.90% in 2025. The adjusted ROE demonstrates a more volatile pattern, diverging from the reported ROE, particularly in 2022 and 2023. This difference highlights the significance of the adjustments made to net income and equity in assessing the company’s underlying profitability.

In summary, the adjusted ROE demonstrates a fluctuating trend influenced by both adjustments to net income and the consistent growth of adjusted total equity. The divergence between adjusted and reported ROE suggests that the adjustments are materially impacting the assessment of the company’s profitability.

The adjusted return on assets (ROA) exhibited fluctuations over the five-year period. While shareholders’ net income and total assets generally increased, the adjusted ROA presented a more complex pattern. A review of the adjusted net income and adjusted total assets reveals the drivers behind these changes.

Adjusted ROA Trend

The adjusted ROA began at 6.32% in 2021, decreased significantly to 3.67% in 2022, then increased to 6.13% in 2023. A slight decline to 5.24% was observed in 2024, followed by a further decrease to 5.06% in 2025. The most substantial change occurred between 2021 and 2022, representing a considerable reduction in profitability relative to assets.

Adjusted Net Income

Adjusted net income increased from US$6,209 million in 2021 to US$6,742 million in 2023, indicating improved profitability. However, it decreased to US$6,207 million in 2024 and remained relatively stable at US$6,225 million in 2025. The 2022 value of US$3,800 million was significantly lower than other years, contributing to the lower adjusted ROA in that year.

Adjusted Total Assets

Adjusted total assets demonstrated a consistent upward trend throughout the period, increasing from US$98,197 million in 2021 to US$123,017 million in 2025. This growth in asset base, coupled with the fluctuations in adjusted net income, influenced the adjusted ROA.

Relationship between Adjusted Net Income and Adjusted ROA

The decline in adjusted ROA in 2022 directly correlates with the substantial decrease in adjusted net income that year, despite an increase in adjusted total assets. The subsequent increase in adjusted ROA in 2023 was driven by a significant rise in adjusted net income, outpacing the growth in adjusted total assets. The more moderate increases in adjusted net income in 2024 and 2025, alongside continued asset growth, resulted in a stabilization and slight decline in adjusted ROA.

In summary, the adjusted ROA was impacted by both the profitability, as measured by adjusted net income, and the scale of operations, as reflected in adjusted total assets. The significant drop in adjusted net income in 2022 had the most pronounced effect on the adjusted ROA, while subsequent years showed a more balanced relationship between these two factors.