Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Elevance Health Inc., short-term (operating) activity ratios
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 short-term operating activity ratios reveals several noteworthy trends over the five-year period. Generally, the company demonstrates consistent, though evolving, efficiency in managing its receivables, payables, and working capital.
- Receivables Turnover & Collection Period
- Receivables turnover exhibits a consistent downward trend, decreasing from 20.66 in 2021 to 16.34 in 2025. This suggests a lengthening of the time it takes to collect on credit sales. Correspondingly, the average receivable collection period increases from 18 days in 2021 to 22 days in 2025, confirming this slower collection rate. While not drastic, this trend warrants monitoring as it could indicate potential issues with credit policies or collection efforts.
- Payables Turnover & Payment Period
- Payables turnover shows an increasing trend, rising from 7.59 in 2021 to 8.68 in 2025. This indicates the company is paying its suppliers more frequently over time. The average payables payment period reflects this, decreasing from 48 days in 2021 to 42 days in 2025. This improvement in payment practices could be a result of strengthened supplier relationships or improved cash management.
- Working Capital Turnover
- Working capital turnover fluctuates over the period. It increased from 7.23 in 2021 to 8.37 in 2022, then decreased to 7.83 in 2023, remained relatively stable at 7.85 in 2024, and finally decreased to 7.50 in 2025. This suggests a varying degree of efficiency in utilizing working capital to generate sales. The recent decline in 2025 may warrant further investigation to determine if it is indicative of a broader operational issue.
Overall, the company appears to be becoming more efficient in managing its payments to suppliers while simultaneously experiencing a slight slowdown in collecting receivables. The working capital turnover demonstrates some volatility, requiring continued observation to assess its long-term implications.
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Turnover Ratios
Average No. Days
Receivables Turnover
Elevance Health Inc., receivables 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) | ||||||
| Premiums | 164,639) | 144,166) | 142,854) | 133,229) | 117,373) | |
| Premium receivables | 10,073) | 8,011) | 7,902) | 7,083) | 5,681) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 16.34 | 18.00 | 18.08 | 18.81 | 20.66 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 5.59 | 6.06 | 6.11 | 7.02 | 6.64 | |
| Intuitive Surgical Inc. | 6.59 | 6.82 | 6.30 | 6.60 | 7.30 | |
| Medtronic PLC | 5.15 | 5.28 | 5.21 | 5.71 | 5.51 | |
| UnitedHealth Group Inc. | 19.27 | 17.66 | 17.27 | 18.22 | 20.07 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 14.19 | 13.93 | 13.74 | 14.33 | 14.76 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 7.58 | 7.97 | 7.66 | 8.22 | 8.00 | |
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
Receivables turnover = Premiums ÷ Premium receivables
= 164,639 ÷ 10,073 = 16.34
2 Click competitor name to see calculations.
An examination of the provided financial information reveals trends in receivables turnover over a five-year period. Premium revenue consistently increased throughout the period, while premium receivables also exhibited growth. However, the rate of increase in receivables differed from that of premium revenue, resulting in a declining receivables turnover ratio.
- Receivables Turnover
- The receivables turnover ratio decreased steadily from 20.66 in 2021 to 16.34 in 2025. This indicates a lengthening of the collection period for premiums receivable. While premium revenue increased from US$117,373 million to US$164,639 million, premium receivables grew from US$5,681 million to US$10,073 million. The proportional increase in receivables is greater than the proportional increase in revenue, driving the decline in the turnover ratio.
The initial decrease from 2021 to 2022 was moderate, moving from 20.66 to 18.81. The subsequent declines were more gradual, with ratios of 18.08, 18.00, and finally 16.34 in 2023, 2024, and 2025 respectively. This suggests a consistent, though decelerating, trend of slower receivables collection. Further investigation may be warranted to understand the underlying causes of this trend, such as changes in payment terms, customer demographics, or collection processes.
The continued growth in premium receivables alongside the declining turnover ratio suggests a potential need to evaluate the efficiency of credit and collection policies. While increased revenue is positive, a slower collection cycle ties up working capital and could potentially increase the risk of bad debts.
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Payables Turnover
Elevance Health Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Benefit expense | 148,223) | 127,567) | 124,330) | 116,487) | 102,645) | |
| Medical claims payable | 17,084) | 15,746) | 16,111) | 15,596) | 13,518) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 8.68 | 8.10 | 7.72 | 7.47 | 7.59 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.56 | 4.46 | 4.19 | 4.15 | 4.21 | |
| Intuitive Surgical Inc. | 13.42 | 14.05 | 12.69 | 13.78 | 14.45 | |
| Medtronic PLC | 4.75 | 4.65 | 4.03 | 4.46 | 4.98 | |
| UnitedHealth Group Inc. | 7.98 | 7.72 | 7.47 | 7.26 | 7.63 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 7.84 | 7.48 | 7.14 | 6.94 | 7.18 | |
| Payables Turnover, Industry | ||||||
| Health Care | 6.15 | 6.10 | 5.97 | 5.79 | 5.84 | |
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
Payables turnover = Benefit expense ÷ Medical claims payable
= 148,223 ÷ 17,084 = 8.68
2 Click competitor name to see calculations.
The payables turnover ratio exhibits an overall increasing trend across the observed period. While fluctuations occur, the ratio generally rises from 2021 to 2025. This suggests a changing pattern in how quickly the company liquidates its obligations to suppliers, specifically medical claims.
- Payables Turnover Trend
- The payables turnover ratio began at 7.59 in 2021. A slight decrease to 7.47 was noted in 2022. Subsequently, the ratio increased to 7.72 in 2023, continued to 8.10 in 2024, and reached 8.68 in 2025. This represents a cumulative increase of approximately 14.4% from 2021 to 2025.
The benefit expense, representing the total cost of healthcare benefits, consistently increased throughout the period, rising from US$102,645 million in 2021 to US$148,223 million in 2025. Medical claims payable also increased, though not at the same rate as benefit expense, moving from US$13,518 million in 2021 to US$17,084 million in 2025.
- Relationship to Benefit Expense and Medical Claims Payable
- The increasing payables turnover ratio, coupled with the growth in both benefit expense and medical claims payable, suggests the company is becoming more efficient in processing and paying claims relative to the overall volume of benefits delivered. The increase in the ratio indicates that, on average, outstanding medical claims are being settled more rapidly over time. This could be due to process improvements, negotiated payment terms, or a shift in the mix of claims being processed.
The slight dip in the payables turnover ratio in 2022 warrants further investigation, though it was quickly reversed in subsequent years. It is possible that temporary factors, such as changes in claim submission patterns or processing delays, contributed to this brief decline.
- Potential Implications
- A higher payables turnover ratio generally indicates efficient management of liabilities and strong relationships with healthcare providers. However, excessively high turnover could potentially suggest overly aggressive payment terms that might strain supplier relationships. The observed trend appears to be within a reasonable range, indicating improved operational efficiency.
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Working Capital Turnover
Elevance Health Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 63,001) | 58,942) | 60,029) | 55,617) | 51,122) | |
| Less: Current liabilities | 41,035) | 40,581) | 41,791) | 39,696) | 34,885) | |
| Working capital | 21,966) | 18,361) | 18,238) | 15,921) | 16,237) | |
| Premiums | 164,639) | 144,166) | 142,854) | 133,229) | 117,373) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 7.50 | 7.85 | 7.83 | 8.37 | 7.23 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.67 | 4.42 | 4.54 | 4.48 | 3.87 | |
| Intuitive Surgical Inc. | 1.29 | 1.56 | 1.14 | 1.29 | 1.22 | |
| Medtronic PLC | 3.07 | 2.90 | 2.47 | 2.97 | 2.15 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 26.92 | 23.57 | 23.27 | 25.59 | 16.28 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 11.25 | 12.35 | 10.99 | 11.30 | 8.57 | |
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
Working capital turnover = Premiums ÷ Working capital
= 164,639 ÷ 21,966 = 7.50
2 Click competitor name to see calculations.
The working capital turnover ratio exhibited fluctuations over the five-year period. While generally remaining within a relatively narrow range, observable trends suggest shifts in the company’s operational efficiency regarding its working capital management.
- Working Capital
- Working capital increased from US$16,237 million in 2021 to US$15,921 million in 2022, representing a slight decrease. Subsequent years saw increases, reaching US$18,238 million in 2023, US$18,361 million in 2024, and culminating in US$21,966 million in 2025. This indicates a general upward trend in working capital over the latter part of the analyzed period.
- Premiums
- Premiums demonstrated consistent growth throughout the period. Starting at US$117,373 million in 2021, premiums rose to US$133,229 million in 2022, US$142,854 million in 2023, US$144,166 million in 2024, and reached US$164,639 million in 2025. This consistent increase suggests sustained business expansion and revenue generation.
- Working Capital Turnover
- The working capital turnover ratio initially increased from 7.23 in 2021 to 8.37 in 2022, suggesting improved efficiency in utilizing working capital to generate revenue. However, the ratio decreased to 7.83 in 2023 and remained relatively stable at 7.85 in 2024. A further decrease to 7.50 was observed in 2025. This suggests that while revenue (as measured by premiums) continued to grow, the rate of working capital utilization slowed in the later years of the period. The decrease in the turnover ratio in 2025, despite continued premium growth, warrants further investigation to determine the underlying causes, such as potential increases in working capital components like accounts receivable or inventory.
Overall, the company experienced growth in both working capital and premiums. However, the fluctuating working capital turnover ratio indicates a changing relationship between these two metrics, with a recent trend suggesting a less efficient utilization of working capital relative to revenue generation.
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Average Receivable Collection Period
Elevance Health Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 16.34 | 18.00 | 18.08 | 18.81 | 20.66 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 22 | 20 | 20 | 19 | 18 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 65 | 60 | 60 | 52 | 55 | |
| Intuitive Surgical Inc. | 55 | 54 | 58 | 55 | 50 | |
| Medtronic PLC | 71 | 69 | 70 | 64 | 66 | |
| UnitedHealth Group Inc. | 19 | 21 | 21 | 20 | 18 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 26 | 26 | 27 | 25 | 25 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 48 | 46 | 48 | 44 | 46 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.34 = 22
2 Click competitor name to see calculations.
An examination of short-term activity ratios reveals a consistent trend in the average receivable collection period over the five-year period. The receivables turnover ratio also exhibits a discernible pattern, influencing the collection period.
- Average Receivable Collection Period
- The average receivable collection period demonstrates a gradual increase from 18 days in 2021 to 22 days in 2025. This represents a 22.22% increase over the observed timeframe. The period remained stable at 20 days for both 2023 and 2024 before increasing to 22 days in the most recent year. This lengthening collection period suggests a potential slowing in the rate at which the company converts receivables into cash.
- Receivables Turnover
- The receivables turnover ratio decreased steadily from 20.66 in 2021 to 16.34 in 2025. This indicates that the company is collecting receivables less frequently over time. The decline is not linear, with a more pronounced decrease observed between 2022 and 2023 (from 18.81 to 18.08) and again between 2024 and 2025 (from 18.00 to 16.34). This decreasing turnover ratio directly correlates with the increasing average collection period.
The observed trends suggest a potential need to investigate the factors contributing to the slower collection of receivables. Possible causes could include changes in credit policies, customer payment behavior, or the efficiency of the collection process. Further investigation is warranted to determine if this trend represents a significant risk to the company’s liquidity.
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Average Payables Payment Period
Elevance Health Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 8.68 | 8.10 | 7.72 | 7.47 | 7.59 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 42 | 45 | 47 | 49 | 48 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 80 | 82 | 87 | 88 | 87 | |
| Intuitive Surgical Inc. | 27 | 26 | 29 | 26 | 25 | |
| Medtronic PLC | 77 | 78 | 91 | 82 | 73 | |
| UnitedHealth Group Inc. | 46 | 47 | 49 | 50 | 48 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 47 | 49 | 51 | 53 | 51 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 59 | 60 | 61 | 63 | 63 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.68 = 42
2 Click competitor name to see calculations.
An examination of short-term activity reveals a consistent trend in the average payables payment period over the five-year period. The payables turnover ratio demonstrates an increasing trend, while the average payables payment period correspondingly decreases.
- Payables Turnover
- The payables turnover ratio exhibited a slight decrease from 7.59 in 2021 to 7.47 in 2022. However, subsequent years show a consistent increase, reaching 8.68 in 2025. This indicates an improving efficiency in managing and paying off supplier obligations over time.
- Average Payables Payment Period
- The average payables payment period began at 48 days in 2021, increased slightly to 49 days in 2022, and then demonstrated a consistent decline. By 2025, the average payment period had decreased to 42 days. This suggests the company is settling its accounts payable more quickly each year.
- Relationship between Ratios
- The inverse relationship between the payables turnover ratio and the average payables payment period is notable. As the payables turnover ratio increases, the average payment period decreases, confirming that the company is becoming more efficient in its payment practices. The increasing turnover suggests a stronger ability to manage cash flow and maintain positive relationships with suppliers through timely payments.
Overall, the observed trends suggest a strengthening of short-term financial management related to accounts payable. The company appears to be optimizing its payment processes, leading to improved efficiency and potentially better terms with suppliers.
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