Stock Analysis on Net

Elevance Health Inc. (NYSE:ELV)

Income Statement 

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Elevance Health Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Premiums 144,166 142,854 133,229 117,373 104,109
Product revenue 22,630 19,452 14,978 12,657 10,384
Service fees 8,408 7,903 7,453 6,913 6,315
Operating revenue 175,204 170,209 155,660 136,943 120,808
Benefit expense (127,567) (124,330) (116,487) (102,645) (88,045)
Cost of products sold (19,750) (17,293) (13,035) (10,895) (8,953)
Cost of operating revenue (147,317) (141,623) (129,522) (113,540) (96,998)
Gross profit 27,887 28,586 26,138 23,403 23,810
Operating expense (20,025) (20,087) (17,686) (15,914) (17,450)
Amortization of other intangible assets (580) (885) (767) (441) (361)
Operating income 7,282 7,614 7,685 7,048 5,999
Fixed maturity securities 1,539 1,387 971 755 725
Equity securities 40 18 48 43 71
Cash equivalents 235 305 77 5 28
Other invested assets 274 157 432 616 91
Investment income 2,088 1,867 1,528 1,419 915
Investment expense (37) (42) (43) (41) (38)
Net investment income 2,051 1,825 1,485 1,378 877
Net gains (losses) on financial instruments (445) (694) (550) 318 182
Gain on sale of business 201
Interest expenses (1,185) (1,030) (851) (798) (784)
Loss on extinguishment of debt (21) (36)
Income before income tax expense 7,904 7,715 7,769 7,925 6,238
Income tax expense (1,933) (1,724) (1,750) (1,830) (1,666)
Net income 5,971 5,991 6,019 6,095 4,572
Net (gain) loss attributable to noncontrolling interests 9 (4) 6 9
Shareholders’ net income 5,980 5,987 6,025 6,104 4,572

Based on: 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), 10-K (reporting date: 2020-12-31).


Revenue Trends
Premiums exhibited consistent growth from 2020 through 2024, increasing from approximately $104.1 billion to $144.2 billion. Product revenue demonstrated strong upward momentum with a notable acceleration in 2023 and 2024, rising from around $10.4 billion to $22.6 billion over the five-year period. Service fees grew steadily but at a slower pace compared to product revenue, reaching about $8.4 billion by 2024. Overall, operating revenue showed continuous expansion, increasing by nearly 45% from $120.8 billion in 2020 to $175.2 billion in 2024.
Expense Analysis
Benefit expense, the largest cost component, increased significantly year over year, from $88.0 billion in 2020 to $127.6 billion in 2024, indicating rising claims or benefit payments. Costs associated with products sold also rose markedly, more than doubling from $8.95 billion in 2020 to $19.75 billion in 2024, reflecting the growth in product revenue. Cost of operating revenue followed a similar upward trend, increasing from $97.0 billion to $147.3 billion within the same timeframe. Operating expenses grew notably between 2020 and 2023, peaking at about $20.1 billion, before plateauing in 2024. Amortization of intangible assets fluctuated but trended downward in 2024.
Profitability and Operating Performance
Gross profit showed moderate growth from $23.8 billion in 2020 to a peak of approximately $28.6 billion in 2023, followed by a slight decline in 2024 to $27.9 billion. Operating income increased from $6.0 billion in 2020 to roughly $7.7 billion in 2022 and remained relatively stable thereafter, with a small decrease in 2024 to $7.3 billion. The stability in operating income despite rising revenues and costs suggests effective cost management or margin moderation.
Investment Activities
Investment income experienced a steady rise from $915 million in 2020 to $2.1 billion in 2024, reflecting growth in fixed maturity securities and overall investments. Investment expense remained relatively stable and low. Net investment income mirrored the upward trajectory. However, net gains or losses on financial instruments displayed volatility, with positive results in early years turning into losses in 2022 through 2024, which may suggest unfavorable market conditions or investment decisions during those years.
Other Financial Aspects
Interest expenses saw a rising trend from $784 million in 2020 to $1.2 billion in 2024, indicating increased borrowing costs or higher debt levels. The gain on sale of business contributed a one-time income boost in 2024 amounting to $201 million. Income before income taxes was relatively stable, ranging from approximately $6.2 billion to $7.9 billion without significant fluctuations. Income tax expense rose in line with pre-tax income, and net income remained roughly constant, fluctuating slightly around $6 billion after peaking in 2021.
Shareholders' Net Income
Shareholders' net income closely tracked net income, maintaining a consistent level near $6 billion over the period, suggesting minimal impact from noncontrolling interests and stable earnings attributable to shareholders.
Summary of Key Insights
The company demonstrated solid revenue growth primarily driven by premiums and product revenue expansion. Rising benefit expenses and costs affected gross profit margins but were managed to sustain a relatively stable operating income. Investment income was a growing contributor to overall profitability despite some recent investment losses. While interest expenses increased, overall net income and shareholders' earnings showed resilience and stability over the period analyzed.