Elevance Health Inc. (NYSE:ELV)

The data reveals evolving financial performance indicators over multiple quarters. Return on Assets (ROA), Financial Leverage, and Return on Equity (ROE) have been tracked, illustrating underlying trends in profitability and capital structure efficiency.

Return on Assets (ROA)

Starting from 5.28% in the first available quarter (March 31, 2020), ROA shows some variability with a general moderate downward trend after peaking at 6.26% in March 31, 2022. Thereafter, it gradually declines towards 4.4% by June 30, 2025. This indicates that asset profitability improved initially but faced pressure in recent quarters, pointing toward slightly diminishing efficiency in asset utilization over the longer term.

Financial Leverage

Financial leverage ratios have fluctuated slightly around an average range of approximately 2.6 to 2.9. There was a minor uptick in leverage through 2021 and early 2022, peaking at 2.92 in March 31, 2023, followed by a gradual reduction to 2.79 in June 30, 2025. This relatively stable leverage level suggests consistent use of debt relative to equity, with no significant shifts toward increased or decreased financial risk.

Return on Equity (ROE)

ROE has exhibited a pattern similar to ROA but with more pronounced volatility. Starting from 13.77% at the earliest data point, ROE rose to a peak of 17.36% by June 30, 2022, indicating strong shareholder returns during that period. Thereafter, it gradually declined to 12.26% by June 30, 2025. The narrower decline in ROE relative to ROA, despite stable financial leverage, suggests changes in net income or equity impacting shareholder returns.

Overall, the company demonstrated improving profitability and returns through early 2022, followed by a moderate decline in subsequent years. The consistency in financial leverage implies that changes in ROA and ROE are primarily driven by operating performance rather than changes in capital structure. The declining trends in the later periods could warrant further investigation into operational drivers or market conditions impacting asset efficiency and equity returns.

The analysis of the quarterly financial metrics reveals several notable trends over the observed periods.

Net Profit Margin

The net profit margin started being reported from the first quarter of 2021 at 3.78%, showing a slight increase to 4.17% by the end of 2020. It peaked at 4.46% in the first quarter of 2022, followed by a gradual decline with minor fluctuations thereafter. By the second quarter of 2025, the margin decreased to 2.85%, indicating a downward trend in profitability relative to revenue in the most recent periods.

Asset Turnover

This ratio was first recorded at 1.39 in the first quarter of 2021 and demonstrated a consistent upward trajectory through the quarters, reaching 1.54 by the last quarter of 2024. Minor fluctuations occurred, but overall, the increase implies improved efficiency in utilizing assets to generate sales over time.

Financial Leverage

Financial leverage displayed moderate volatility, beginning at 2.6 in early 2020, rising to a peak of 2.92 in the first quarter of 2023. Subsequently, leverage decreased gradually to approximately 2.66 in late 2024 before rising slightly to 2.79 in the second quarter of 2025. This pattern suggests varying reliance on debt or other liabilities, with overall leverage remaining at moderately elevated levels throughout the period.

Return on Equity (ROE)

Return on equity first appeared in early 2021 at 13.77%, followed by a growth phase reaching a maximum of 17.36% in the second quarter of 2022. After this peak, a gradual decline occurred, and by mid-2025 ROE had decreased to 12.26%. This reflects an initial improvement in shareholder returns, tapering off towards the end of the timeline, hinting at reduced earnings efficiency relative to shareholders' equity in recent periods.

In summary, the company exhibited growing asset efficiency and initially rising profitability and shareholder returns up until around 2022. However, more recent quarters indicate a decline in net profit margin and return on equity, coupled with relatively stable yet slightly declining financial leverage. These trends may suggest increasing cost pressures or reduced profitability, despite efficient asset utilization.

Tax Burden

The tax burden ratio shows a consistent value starting from March 31, 2021, maintaining approximately 0.77 with a slight increase to 0.78 in late 2023 and early 2024. There is a minor downward trend observed after December 31, 2024, declining to 0.76 by June 30, 2025, indicating relative stability with marginal fluctuations in the effective tax rate.

Interest Burden

The interest burden ratio reveals a mild decreasing trend over the periods analyzed. Starting around 0.89 in early 2021, it dips gradually to 0.84 by June 30, 2025. The decline suggests a slight improvement in interest expense management relative to operating income, possibly reflecting lower interest costs or an enhanced earnings position.

EBIT Margin

The EBIT margin exhibits notable variability, initially decreasing from 5.81% in March 2021 to a low of 4.94% in September 2021. This is followed by recovery and stabilization around the mid-5% range until late 2023. Thereafter, a downward trend is observed, declining to 4.47% by June 30, 2025. This pattern indicates fluctuating operating profitability with recent erosion in EBIT margins.

Asset Turnover

Asset turnover demonstrates a general upward trend throughout the timeline. Beginning near 1.39 in March 2021, it incrementally rises to around 1.54 by mid-2025. This improvement signals increased efficiency in utilizing assets to generate revenue, portraying effective asset management.

Financial Leverage

Financial leverage ratios remain relatively stable over the period, fluctuating mildly around 2.6 to 2.9. A slight peak is observed in the first half of 2023 at 2.92, followed by a modest decline towards 2.79 by mid-2025. This indicates moderate use of debt in the company's capital structure without significant shifts.

Return on Equity (ROE)

ROE shows a pattern of fluctuation with an initial increase from 13.77% in March 2021 to a peak of 17.36% around mid-2021. Subsequently, it stabilizes near the mid-16% range before gradually declining to 12.26% by June 2025. The trend suggests that shareholder returns improved significantly during early 2021 but have been diminishing more recently, reflecting combination effects of the operating margin, leverage, and asset turnover dynamics.

The data reveals significant trends in profitability and efficiency metrics over a five-year period.

Net Profit Margin

The net profit margin begins its recorded trajectory in early 2020 at 3.78%, gradually increasing to a peak of 4.46% in the first quarter of 2022. This period marks the highest profitability as a percentage of revenues across the dataset. After this peak, the margin exhibits a gradual decline, falling to 2.85% by mid-2025. This downward trend in the last few quarters suggests pressures on profitability, potentially due to rising costs or pricing pressures.

Asset Turnover

The asset turnover ratio, which measures the efficiency of asset utilization in generating sales, shows a generally positive trend. Starting from 1.39 in early 2020, it fluctuates within a narrow range but ultimately increases from 1.41 in early 2022 to 1.54 by mid-2025. This steady improvement indicates enhanced operational efficiency and better use of assets over time.

Return on Assets (ROA)

The return on assets, integrating profitability and asset utilization, starts at 5.28% at the beginning of the dataset and climbs to a peak of 6.26% in the first quarter of 2022, mirroring the pattern of net profit margin. Post-2022, a downward trajectory sets in, with ROA falling to 4.40% by mid-2025. This decline suggests that although asset efficiency has improved, the overall ability to convert assets into net income has weakened, largely influenced by the contracting profit margins.

Overall, the analysis reflects an initial phase of improving profitability and asset efficiency culminating around early 2022, followed by a period of diminishing net profitability despite steadily improving asset utilization. These patterns suggest external or internal challenges impacting profitability, while operational management appears to maintain or enhance asset use effectiveness.

Tax Burden

The tax burden ratio, available from the first quarter of 2021, remains relatively stable over the observed periods. It initially registers at 0.73 and increases slightly to 0.78 by the fourth quarter of 2023. After this peak, it maintains a level close to 0.76 through mid-2025, indicating moderate consistency in the company's effective tax rate over time.

Interest Burden

The interest burden shows a mild downward trend from 0.89 at the start of the recorded periods in early 2021 to a low of 0.84 by the last quarter of 2024 and further decreases to 0.86 by mid-2025. This pattern suggests an improvement in managing interest expenses relative to earnings, potentially reducing the financial leverage cost burden on operating income.

EBIT Margin

The EBIT margin exhibits some variability, beginning at 5.81% in the first quarter of 2021 and showing a noticeable dip to 4.94% in the third quarter of the same year. Margins subsequently recover, peaking around 6.38% in the first quarter of 2022. Thereafter, a gradual decline is observed, reaching 4.47% by the first quarter of 2025. This declining trend toward the end of the period may indicate increasing cost pressures or decreasing pricing power affecting operating profitability.

Asset Turnover

The asset turnover ratio demonstrates a positive trend over the period. Starting at 1.39 in early 2021, it increases steadily with minor fluctuations, reaching 1.54 by mid-2025. The consistent improvement points to enhanced efficiency in utilizing assets to generate revenue, reflecting operational effectiveness in asset management.

Return on Assets (ROA)

ROA reflects fluctuations similar to EBIT margin but at generally higher levels. Beginning at 5.28% in the first quarter of 2021, it dips to 4.4% in the third quarter of 2021, then climbs to a peak of 6.26% in the first quarter of 2022. Subsequent periods show a downward trajectory, culminating at 4.4% by the third quarter of 2024, indicating variations in profitability relative to total assets. This suggests that despite improved asset turnover, returns on those assets have declined, potentially due to margin compression or other operational factors.

The financial data indicates several important trends over the observed periods, particularly from March 31, 2020, through June 30, 2025.

Tax Burden Ratio

The tax burden ratio displays a consistent pattern starting from the first recorded value at 0.73 in March 2021. It increases slightly and stabilizes around 0.77 from mid-2021 through early 2024. Toward the later periods, there is a marginal decline from 0.78 to 0.76, suggesting a slight reduction in the effective tax impact on profits during late 2024 and 2025, though the ratio remains relatively stable throughout the timeline.

Interest Burden Ratio

The interest burden ratio remains near 0.89 to 0.91 in early 2021 but starts a gradual downward trend after December 2021. It decreases from 0.90 to 0.84 by the end of the observation period in mid-2025. This decline indicates improvement in managing interest expenses or a reduction in interest obligations relative to earnings before tax and interest, which may positively influence profitability.

EBIT Margin (%)

The EBIT margin fluctuates over the periods examined. Initially recorded at approximately 5.81% in March 2021, the margin experiences some volatility but remains mostly in the 5% to 6% range. Notable dips occur towards the end of 2023 and into 2025, reaching a low of 4.47% by June 2025. Overall, there is a slightly downward trajectory in EBIT margin, indicating a modest contraction in operating profitability over time.

Net Profit Margin (%)

Net profit margin values show a pattern similar to EBIT margin, starting at 3.78% in March 2021 and rising to a peak near 4.46% in early 2022. Afterward, the margin exhibits a gradual decline with minor fluctuations, dropping to 2.85% by June 2025. This downward trend suggests increasing pressure on net profitability, possibly due to rising costs, higher expenses, or other operational challenges affecting the bottom line.

In summary, the ratios demonstrate relative stability in tax burden, gradual improvement in handling interest expenses, modest declines in both operating and net profitability margins. These trends may reflect external economic factors, cost management strategies, or changes in business operations impacting overall financial performance over time.