Elevance Health Inc. (NYSE:ELV)

Liquidity ratios for the analyzed period demonstrate a generally stable profile with subtle shifts over the five-year timeframe. The company maintains adequate levels of short-term assets relative to its short-term liabilities, as indicated by the current and quick ratios. However, a closer examination reveals nuanced trends within each metric.

Current Ratio

The current ratio experienced a slight decrease from 1.47 in 2021 to 1.40 in 2022. This was followed by a period of incremental increases, reaching 1.45 in 2024, and further improving to 1.54 in 2025. This suggests a strengthening ability to cover short-term obligations with current assets over the latter part of the analyzed period.

Quick Ratio

Similar to the current ratio, the quick ratio decreased from 1.33 in 2021 to 1.27 in 2022. The trend then exhibited modest growth, reaching 1.32 in 2024 and 1.41 in 2025. The quick ratio’s movement mirrors that of the current ratio, indicating that changes in inventory levels are not significantly driving the overall liquidity position.

Cash Ratio

The cash ratio showed a decline from 0.95 in 2021 to 0.86 in 2022. It remained relatively stable between 0.86 and 0.87 for 2022 and 2023, experienced a slight dip to 0.85 in 2024, and then increased marginally to 0.88 in 2025. This indicates a consistent, though modest, capacity to meet immediate obligations with cash and cash equivalents. The relative stability suggests a deliberate management of liquid assets.

Overall, the observed trends suggest a consistent liquidity position with a slight improvement in the most recent years. While there was a minor dip in liquidity metrics in 2022, the company demonstrated a recovery and strengthening of its short-term asset coverage through 2025. The cash ratio’s stability indicates a conservative approach to maintaining readily available funds.

The current ratio exhibited a generally stable pattern over the five-year period, with some fluctuation. Initial values indicate a moderate level of liquidity, which has seen minor adjustments annually.

Current Ratio Trend

The current ratio began at 1.47 in 2021. A slight decrease was observed in 2022, falling to 1.40. The ratio then experienced a modest recovery in 2023, reaching 1.44, and continued to increase slightly to 1.45 in 2024. The most notable change occurred in 2025, with the current ratio rising to 1.54, representing the highest value within the observed period.

The fluctuations in the current ratio appear to be driven by a combination of changes in both current assets and current liabilities. While current assets generally increased over the period, the rate of increase was not consistent. Current liabilities also increased, but at a slower pace than current assets in the final year of the period.

Asset and Liability Relationship

From 2021 to 2023, increases in current liabilities outpaced those of current assets, contributing to the initial decline and subsequent stabilization of the current ratio. However, in 2025, the growth in current assets exceeded that of current liabilities, resulting in the observed improvement in the ratio.

Overall, the current ratio remained above 1.40 throughout the period, suggesting the entity generally possesses sufficient current assets to cover its current liabilities. The increase in 2025 indicates a strengthening of the short-term liquidity position.

The quick ratio for the analyzed period demonstrates a generally stable, with a slight upward trend over the five-year span. Initial values indicate a healthy ability to meet short-term obligations with highly liquid assets. Fluctuations are observed, but the ratio consistently remains above 1.0, suggesting a comfortable margin of safety.

Overall Trend

The quick ratio experienced a minor decrease from 1.33 in 2021 to 1.27 in 2022. Subsequently, it exhibited a recovery, reaching 1.30 in 2023 and 1.32 in 2024, before increasing to 1.41 in 2025. This indicates improving short-term liquidity towards the end of the analyzed period.

Quick Asset Evolution

Total quick assets increased consistently from US$46,468 million in 2021 to US$57,657 million in 2025. The growth was not strictly linear, with a slight decrease observed between 2023 and 2024 (from US$54,234 million to US$53,752 million), but the overall trajectory is positive. This suggests an increasing availability of liquid assets to cover immediate liabilities.

Liability Behavior

Current liabilities increased from US$34,885 million in 2021 to US$39,696 million in 2022, and then to US$41,791 million in 2023. A slight decrease to US$40,581 million was noted in 2024, followed by a further increase to US$41,035 million in 2025. While liabilities have generally increased, the growth in quick assets has largely outpaced this increase, contributing to the observed trend in the quick ratio.

The combination of increasing quick assets and relatively stable current liabilities suggests strengthening short-term financial flexibility. The final value of 1.41 in 2025 represents the strongest quick ratio within the analyzed timeframe, indicating a robust capacity to cover immediate obligations.

The cash ratio exhibited a generally stable, though slightly declining, pattern over the five-year period. While fluctuations occurred, the ratio remained consistently below one, indicating that the entity’s most liquid assets were insufficient to cover its immediate current liabilities throughout the analyzed timeframe.

Overall Trend

The cash ratio decreased from 0.95 in 2021 to 0.86 in 2022, representing the largest single-year decline in the series. It then showed a modest recovery to 0.87 in 2023, followed by a further decrease to 0.85 in 2024. A slight increase to 0.88 was observed in 2025, but the ratio did not return to the level observed in 2021.

Cash Assets

Total cash assets generally increased from US$33,028 million in 2021 to US$36,369 million in 2023. However, a decrease to US$34,681 million was noted in 2024, followed by a recovery to US$36,115 million in 2025. This suggests that while cash reserves have grown overall, they have not consistently kept pace with changes in current liabilities.

Current Liabilities

Current liabilities demonstrated a consistent upward trend, increasing from US$34,885 million in 2021 to US$41,791 million in 2023. The rate of increase slowed in 2024, with current liabilities decreasing slightly to US$40,581 million, before rising again to US$41,035 million in 2025. The continuous growth in current liabilities likely contributed to the observed pressure on the cash ratio.

The combination of relatively stable, but fluctuating, cash assets and increasing current liabilities resulted in a cash ratio that remained below one throughout the period. This suggests a potential vulnerability in meeting short-term obligations solely with available cash.