Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Elevance Health Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term investment activity ratios reveals generally positive trends across the observed period. Several ratios demonstrate increasing efficiency in asset utilization, while others indicate a strengthening relationship between equity and revenue generation. The period between 2021 and 2025 shows consistent, albeit sometimes moderate, improvements in these key performance indicators.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits an overall upward trend, increasing from 34.94 in 2021 to 42.23 in 2025. While a slight decrease is noted between 2023 and 2024 (from 39.05 to 37.66), the ratio recovers strongly in the final year. This suggests increasing efficiency in generating revenue from fixed assets over the period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also demonstrates an increasing trend, moving from 30.12 in 2021 to 38.51 in 2025. The pattern of a slight dip in 2024 (34.43 to 33.57) followed by recovery is also present. The inclusion of operating lease obligations appears to result in lower turnover values compared to the standard calculation, but the trend remains positive.
- Total Asset Turnover
- The total asset turnover ratio shows a consistent increase from 1.41 in 2021 to 1.63 in 2025. This indicates improved efficiency in utilizing all assets to generate revenue. The increase is relatively steady, with a minor decrease observed between 2022 and 2023 (1.51 to 1.50), but the overall trajectory is upward.
- Equity Turnover
- The equity turnover ratio displays a positive trend, rising from 3.80 in 2021 to 4.50 in 2025. This suggests that revenue is being generated more effectively relative to the amount of equity invested. The growth is relatively consistent throughout the period, with minor fluctuations, indicating a strengthening relationship between equity and revenue generation.
In summary, the observed ratios consistently point towards improved asset utilization and a more efficient generation of revenue relative to both fixed assets and total assets. The increasing equity turnover ratio further reinforces this positive trend, suggesting a strengthening connection between equity investment and revenue production.
Net Fixed Asset Turnover
Elevance Health Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Operating revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates an overall increasing trend between 2021 and 2025. This indicates a growing efficiency in utilizing fixed assets to generate revenue. Fluctuations are observed within this general upward movement, suggesting varying levels of asset utilization efficiency year-over-year.
- Operating Revenue
- Operating revenue consistently increased throughout the period, moving from US$136,943 million in 2021 to US$197,584 million in 2025. This growth in revenue is a primary driver of the observed changes in the net fixed asset turnover ratio.
- Property and Equipment, Net
- Property and equipment, net, experienced a steady, albeit moderate, increase from US$3,919 million in 2021 to US$4,679 million in 2025. The growth in fixed assets was slower than the growth in operating revenue, contributing to the increasing turnover ratio.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio began at 34.94 in 2021 and rose to 36.07 in 2022, indicating improved asset utilization. A further increase to 39.05 was noted in 2023, representing the highest value within the observed period. A slight decrease to 37.66 occurred in 2024, before rebounding to 42.23 in 2025. This final value represents a substantial increase compared to the initial value in 2021, suggesting a significant improvement in the efficiency with which fixed assets are employed to generate sales.
The consistent growth in operating revenue, coupled with a more moderate increase in net fixed assets, has resulted in a positive trend for the net fixed asset turnover ratio. The slight dip in 2024 warrants further investigation to determine the underlying cause, but the subsequent recovery in 2025 suggests it was not indicative of a fundamental shift in asset utilization efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Elevance Health Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Property and equipment, net | ||||||
| Operating leases, ROU assets (located in Other noncurrent assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property and equipment net of accumulated depreciation and including operating lease right-of-use assets, demonstrates an overall increasing trend between 2021 and 2025. Operating revenue consistently increased over the period, while the value of property and equipment experienced more moderate growth, contributing to the observed ratio behavior.
- Operating Revenue
- Operating revenue increased from US$136,943 million in 2021 to US$197,584 million in 2025. This represents a cumulative increase of approximately 44.3% over the five-year period. The largest year-over-year increase occurred between 2022 and 2023, with a rise of US$14,549 million.
- Property and Equipment (Net, including Operating Lease, Right-of-Use Asset)
- The net value of property and equipment, including operating lease right-of-use assets, showed a more subdued growth pattern. It increased from US$4,547 million in 2021 to US$5,131 million in 2025, representing a cumulative increase of approximately 12.8%. Growth was most pronounced between 2022 and 2023, but the value decreased slightly in 2025.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio increased from 30.12 in 2021 to 38.51 in 2025. This indicates increasing efficiency in generating revenue from its fixed asset base. The ratio experienced incremental increases in 2022 and 2023, reaching a peak of 34.43. A slight decrease was observed in 2024 (to 33.57) before resuming an upward trajectory in 2025. The increasing trend suggests the company is effectively utilizing its fixed assets to drive revenue growth.
The combination of increasing revenue and relatively stable fixed asset investment has resulted in a consistently improving net fixed asset turnover ratio. This suggests enhanced operational efficiency and a strengthening ability to generate sales from its existing asset base.
Total Asset Turnover
Elevance Health Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits an overall upward trend across the observed period. Beginning at 1.41 in 2021, the ratio increased to 1.51 in 2022 and continued to rise, reaching 1.56 in 2023. A slight decrease to 1.50 was noted in 2024, but the ratio resumed its upward trajectory, concluding at 1.63 in 2025.
- Total Asset Turnover Trend
- The ratio demonstrates increasing efficiency in asset utilization for revenue generation. The consistent increase suggests the company is becoming more effective at converting its investments in assets into sales. The dip in 2024 is a minor fluctuation within the broader positive trend and does not negate the overall improvement.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2021 and 2022, with a change of 0.10. The increase from 2022 to 2023 was 0.05, indicating a slowing rate of improvement, followed by a slight decrease in 2024 of 0.06. The most recent increase, from 2024 to 2025, was 0.13, representing a renewed acceleration in asset utilization efficiency.
- Relationship to Revenue Growth
- Operating revenue increased consistently throughout the period. The concurrent increase in the total asset turnover ratio suggests that revenue growth is not solely attributable to increased asset investment, but also to improved efficiency in utilizing existing assets. This indicates effective management of asset deployment and operational processes.
In summary, the observed trend in the total asset turnover ratio indicates improving efficiency in generating revenue from assets. While a minor fluctuation occurred in 2024, the overall pattern demonstrates a positive trajectory, suggesting effective asset management practices.
Equity Turnover
Elevance Health Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Operating revenue ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuation. Operating revenue consistently increased year-over-year, while shareholders’ equity also exhibited growth, though at a more moderate pace. This interplay drives the observed changes in equity turnover.
- Equity Turnover Trend
- The equity turnover ratio began at 3.80 in 2021 and increased to 4.29 in 2022. A slight increase to 4.33 was noted in 2023, followed by a minor decrease to 4.24 in 2024. The ratio concluded the period with an increase to 4.50 in 2025. This suggests a strengthening ability to generate revenue from shareholders’ investments over the long term, despite the temporary dip in 2024.
- Revenue Impact
- Operating revenue increased from US$136,943 million in 2021 to US$197,584 million in 2025, representing a substantial overall growth. This consistent revenue expansion is a primary driver of the increasing equity turnover ratio.
- Equity Impact
- Shareholders’ equity grew from US$36,060 million in 2021 to US$43,882 million in 2025. While positive, the growth in equity was less pronounced than the growth in revenue. This difference contributes to the observed increases in equity turnover, as the same or increasing revenue is generated with a comparatively smaller equity base.
The slight decrease in equity turnover in 2024 warrants attention, though it was quickly reversed in the following year. Further investigation into the factors influencing both revenue and equity during 2024 could provide additional insights into this fluctuation.