Common-Size Income Statement
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Elevance Health Inc., common-size consolidated income statement
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).
The common-size income statement reveals several noteworthy trends over the five-year period. Operating revenue remained consistently at 100%, as expected, allowing for a clear view of proportional changes in other income statement items. A gradual shift in revenue composition is apparent, with premiums decreasing as a percentage of operating revenue while product revenue increases.
- Revenue Composition
- Premiums, the largest component of operating revenue, decreased from 85.71% in 2021 to 82.28% in 2024 before a slight increase to 83.33% in 2025. Simultaneously, product revenue increased from 9.24% to 12.92% in 2024, then decreased slightly to 12.38% in 2025. Service fees remained relatively stable, fluctuating between 4.79% and 5.05% before decreasing to 4.29% in 2025.
- Profitability
- Gross profit as a percentage of operating revenue experienced a consistent decline, moving from 17.09% in 2021 to 14.26% in 2025. This decrease is mirrored in operating income, which fell from 5.15% to 3.33% over the same period. Net income followed a similar trajectory, decreasing from 4.45% to 2.87%. This suggests increasing pressure on profitability despite revenue growth.
- Expense Management
- Cost of operating revenue consistently increased as a percentage of operating revenue, rising from 82.91% in 2021 to 85.74% in 2025. Benefit expense remained relatively stable, fluctuating around 74-75%, with a notable increase to 75.02% in 2025. Operating expenses also decreased slightly, from 11.62% to 10.62%.
- Investment Activity
- Investment income as a percentage of operating revenue remained relatively stable, fluctuating between 0.95% and 1.19%. However, net gains (losses) on financial instruments were volatile, moving from 0.23% to -0.41% before recovering to -0.33% in 2025. Cash equivalents increased significantly from 0.00% in 2021 to 0.18% in 2023, then decreased to 0.14% in 2025.
- Other Items
- Interest expenses increased steadily from 0.58% to 0.71% of operating revenue. A gain on the sale of business was recorded in 2024, representing 0.11% of operating revenue. Income tax expense as a percentage of operating revenue decreased from 1.34% in 2021 to 0.53% in 2025.
Overall, the analysis indicates a trend of increasing expenses and decreasing profitability, despite growth in product revenue. The company appears to be managing interest expenses effectively, and the decrease in income tax expense partially offsets the decline in operating income. The volatility in net gains (losses) on financial instruments warrants further investigation.