Stock Analysis on Net

Elevance Health Inc. (NYSE:ELV)

$24.99

Analysis of Solvency Ratios

Microsoft Excel

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Solvency Ratios (Summary)

Elevance Health Inc., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

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).


Debt to Equity
The debt to equity ratio exhibited a gradual increase from 0.60 in 2020 to 0.76 in 2024, indicating a rising reliance on debt relative to shareholders’ equity. When including operating lease liabilities, the ratio similarly rose from 0.63 to 0.78 over the same period. This suggests the company's leverage position has modestly increased, incorporating both traditional debt and lease obligations.
Debt to Capital
The debt to capital ratio followed a comparable upward trajectory, moving from 0.38 in 2020 to 0.43 in 2024. Including operating lease liabilities marginally increased these values each year, culminating at 0.44 in 2024. This trend reflects a moderate increase in the proportion of debt financing within the company’s capital structure.
Debt to Assets
This ratio remained relatively stable between 0.23 and 0.24 from 2020 through 2023, then increased to 0.27 in 2024, indicating a slight growth in the proportion of assets financed by debt. The inclusion of operating lease liabilities added a minor uplift in the ratio’s values but followed the same trend.
Financial Leverage
Financial leverage, defined as the ratio of total assets to equity, rose steadily from 2.61 in 2020 to 2.83 in 2022, showed a slight decrease to 2.77 in 2023, and returned to 2.83 in 2024. This indicates a consistent level of leverage, with a minor dip in 2023, suggesting stable use of equity relative to assets over the period.
Interest Coverage
The interest coverage ratio improved notably from 8.96 in 2020 to peak at 10.93 in 2021, then gradually declined to 7.67 in 2024. This pattern suggests that while the company's ability to cover interest expenses was strongest in 2021, it has weakened somewhat in the subsequent years, potentially reflecting increased interest expenses or reduced operating income.
Fixed Charge Coverage
Fixed charge coverage exhibited growth from 6.10 in 2020 to 8.82 in 2022, followed by a decline to 6.93 in 2024. This mirrors the interest coverage trend, highlighting an initial strengthening ability to cover fixed financial obligations, with a subsequent erosion of this buffer in the later years.
Summary Insights
Overall, the company shows a pattern of gradually increasing leverage across multiple measures, with debt ratios rising modestly over five years. Coverage ratios peaked in 2021-2022, suggesting a period of stronger earnings relative to fixed obligations, but then declined, indicating a potential increasing burden from debt costs or a relative decrease in operating earnings. The consistent but moderate upward trend in leverage and the declining coverage ratios towards the end of the period suggest cautious monitoring of financial risk is warranted.

Debt Ratios


Coverage Ratios


Debt to Equity

Elevance Health Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
 
Shareholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Equity, Sector
Health Care Equipment & Services
Debt to Equity, Industry
Health Care

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt

The total debt has shown a consistent upward trend over the five-year period. Beginning at $20,035 million in 2020, the debt increased to $23,031 million in 2021 and further to $24,114 million in 2022. This growth continued through 2023 and 2024, reaching $25,120 million and $31,232 million respectively. The increase between 2023 and 2024 is particularly notable, indicating a more pronounced rise in debt during the latest period.

Shareholders’ Equity

Shareholders' equity also demonstrated a steady increase throughout the period. Starting from $33,199 million in 2020, it rose to $36,060 million in 2021 and slightly increased to $36,307 million in 2022. There was a stronger growth in equity in subsequent years, reaching $39,306 million in 2023 and $41,315 million in 2024. This suggests a positive trajectory, although the rate of increase appears more moderate compared to the surge in total debt in the latest year.

Debt to Equity Ratio

The debt to equity ratio remained relatively stable from 2020 to 2023, fluctuating narrowly between 0.60 and 0.66. Specifically, it was 0.60 in 2020, rising slightly to 0.64 in 2021, peaking at 0.66 in 2022, and then decreasing back to 0.64 in 2023. However, in 2024, the ratio increased significantly to 0.76. This increase corresponds with the accelerated rise in total debt compared to shareholders' equity, indicating an elevated leverage level in the most recent year and potentially a higher financial risk profile.


Debt to Equity (including Operating Lease Liability)

Elevance Health Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
Operating leases, lease liabilities, current (located in Other current liabilities)
Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities)
Total debt (including operating lease liability)
 
Shareholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Equity (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Equity (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)

The total debt has shown a consistent increase over the five-year period. Starting from $20.992 billion in 2020, it rose steadily each year, reaching $32.043 billion in 2024. This represents a significant growth in the company’s leverage, with the most notable increase occurring between 2023 and 2024.

Shareholders’ Equity

Shareholders’ equity also exhibited an upward trend, increasing from $33.199 billion in 2020 to $41.315 billion in 2024. The growth has been relatively steady, with a slight acceleration observed in the last two years, indicating strengthening capital base and retained earnings.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio fluctuated slightly but showed an overall increasing trend from 0.63 in 2020 to 0.78 in 2024. The ratio experienced a minor peak at 0.69 in 2022, then briefly decreased in 2023 before rising again notably in 2024. This increasing trend suggests a growing reliance on debt financing relative to equity, which may impact the company’s financial risk profile.

Summary

Overall, the data indicates that the company has been expanding both its debt and equity base, with debt growing at a relatively faster pace in the most recent year. The upward movement in the debt to equity ratio reflects increasing leverage, which could be a strategic choice to finance growth opportunities but also implies higher financial obligations. The steady growth in shareholders’ equity suggests ongoing profitability or capital infusion, which provides a buffer against the rising debt levels.


Debt to Capital

Elevance Health Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
Shareholders’ equity
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Capital, Sector
Health Care Equipment & Services
Debt to Capital, Industry
Health Care

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


Total Debt

The total debt has shown a consistent upward trend over the five-year period. Starting at $20,035 million in 2020, it increased annually, reaching $31,232 million by the end of 2024. This represents a significant rise, particularly notable in the last reported year.

Total Capital

Total capital also experienced growth throughout the period, rising from $53,234 million in 2020 to $72,547 million in 2024. The increase, although steady, appears to be at a slower pace compared to the rise in total debt, especially in the final year.

Debt to Capital Ratio

The debt to capital ratio exhibits moderate fluctuation, beginning at 0.38 in 2020 and hovering around 0.39 to 0.40 through 2023. In 2024, there is a notable increase to 0.43, reflecting a higher proportion of debt within the capital structure. This suggests a growing reliance on debt financing relative to the company's total capital base.

Overall Analysis

Overall, the data indicates a pattern of progressive debt accumulation outpacing the growth in total capital. The steady rise in total capital affirms ongoing capital investment or retention, but the increased debt to capital ratio in the final year implies a strategic shift towards greater leverage. This movement towards higher leverage could signal attempts to finance expansion or other projects through borrowing, which may affect financial risk profiles.


Debt to Capital (including Operating Lease Liability)

Elevance Health Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
Operating leases, lease liabilities, current (located in Other current liabilities)
Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities)
Total debt (including operating lease liability)
Shareholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Capital (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Capital (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.


The financial data indicates an overall increase in total debt (including operating lease liability) over the five-year period under review. The total debt rose from $20,992 million in 2020 to $32,043 million in 2024, showing a consistent upward trajectory each year with a notable acceleration between 2023 and 2024.

Total capital (including operating lease liability) also exhibited growth across the same period, increasing from $54,191 million in 2020 to $73,358 million in 2024. This represents a steady rise in capital invested in the business, with moderate increments year-over-year.

The debt-to-capital ratio reveals the proportion of debt within the company's total capital structure and shows some fluctuations. Starting at 0.39 in 2020, the ratio slightly increased to 0.40 in 2021, peaked at 0.41 in 2022, then decreased back to 0.40 in 2023 before rising again to 0.44 in 2024. This pattern suggests that, despite the growth in total capital, the company has increasingly relied on debt financing relative to its capital base, especially in the most recent year, indicating a higher leverage position.

Total Debt Trend
Consistent increase from 2020 through 2024, with a significant rise in the last year.
Total Capital Trend
Steady upward movement over five years, reflecting growing capital investments.
Debt to Capital Ratio Trend
Generally stable with slight increases and decreases, ultimately rising in 2024, suggesting increased leverage.
Financial Implications
The rising debt levels and increased debt-to-capital ratio indicate a strategic shift toward greater reliance on debt financing, which may affect the company’s risk profile and cost of capital moving forward.

Debt to Assets

Elevance Health Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Assets, Sector
Health Care Equipment & Services
Debt to Assets, Industry
Health Care

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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total Debt

The total debt has demonstrated a consistent upward trend over the assessed five-year period. Starting at $20,035 million at the end of 2020, it increased to $23,031 million in 2021, continuing a steady rise to $24,114 million in 2022 and $25,120 million in 2023. This growth accelerated notably in 2024, with total debt reaching $31,232 million. This indicates a progressive increase in the company's borrowing or liabilities over time, with a more pronounced increase in the latest year.

Total Assets

Total assets have also shown a steady increase throughout the period. Beginning at $86,615 million in 2020, assets rose to $97,460 million in 2021 and further to $102,772 million in 2022. This upward trajectory continued with $108,928 million in 2023 and reached $116,889 million by the end of 2024. The consistent growth in assets suggests ongoing expansion or investment in asset bases.

Debt to Assets Ratio

The debt to assets ratio remained relatively stable from 2020 to 2023, hovering around 0.23 to 0.24, indicating that the proportion of debt relative to total assets was steady during these years. However, in 2024, the ratio increased to 0.27. This rise reflects that total debt grew at a faster rate than total assets during the last year, leading to a higher leverage position. The increasing leverage ratio in 2024 may signal a shift in financial strategy or an increased reliance on borrowing.


Debt to Assets (including Operating Lease Liability)

Elevance Health Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings
Current portion of long-term debt
Long-term debt, less current portion
Total debt
Operating leases, lease liabilities, current (located in Other current liabilities)
Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities)
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Debt to Assets (including Operating Lease Liability), Sector
Health Care Equipment & Services
Debt to Assets (including Operating Lease Liability), Industry
Health Care

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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


The financial data for the reviewed periods reveals notable trends in the company's leverage and asset base.

Total debt (including operating lease liability)
There is a consistent increase in total debt over the five-year span. Starting at approximately 20.99 billion USD in 2020, total debt rose to about 32.04 billion USD by the end of 2024. The growth shows an acceleration in the final year, with an increase of nearly 5.07 billion USD from 2023 to 2024, compared to smaller increments in prior years.
Total assets
This metric also exhibits a steady upward trend, increasing from roughly 86.62 billion USD in 2020 to approximately 116.89 billion USD in 2024. Although asset growth is continuous, the yearly increments appear more moderate when compared to the growth in total debt, especially in the latest year.
Debt to assets ratio (including operating lease liability)
The debt-to-assets ratio remained relatively stable around 0.24-0.25 from 2020 through 2023, indicating a consistent leverage position relative to asset size. However, in 2024, the ratio increased to 0.27, reflecting a higher proportion of debt financing relative to assets. This uptick corresponds with the sharper increase in total debt relative to asset growth in that year.

Overall, the company maintained a cautious leverage level from 2020 to 2023, with both debt and assets growing in a balanced manner. The increase in the debt-to-assets ratio in 2024 suggests a shift towards more aggressive leverage, potentially signaling strategic financing decisions or increased borrowing to fund operations or investments.


Financial Leverage

Elevance Health Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Total assets
Shareholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Financial Leverage, Sector
Health Care Equipment & Services
Financial Leverage, Industry
Health Care

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total assets

Total assets showed a consistent upward trend over the five-year period. Starting from approximately US$86.6 billion at the end of 2020, total assets increased each year, reaching nearly US$116.9 billion by the end of 2024. The annual growth indicates steady expansion of the asset base, with the largest increases observed between 2020-2021 and 2023-2024.

Shareholders’ equity

Shareholders’ equity also demonstrated growth during the period analyzed, rising from approximately US$33.2 billion at the end of 2020 to around US$41.3 billion at the end of 2024. The growth pace appeared moderate and relatively stable, with equity increasing each year but showing a slight slowdown in 2021-2022 before picking up again in subsequent years.

Financial leverage

Financial leverage, expressed as a ratio, exhibited a subtle upward trend overall. It started at 2.61 in 2020, peaking at 2.83 in 2022 and again in 2024, with a minor dip to 2.7 in 2021 and 2.77 in 2023. The data suggest that the company gradually increased its use of debt relative to equity over time, maintaining a leverage ratio around the high 2.7 to low 2.8 range, indicating a consistent approach to capital structure management.


Interest Coverage

Elevance Health Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Shareholders’ net income
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Add: Interest expenses
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Interest Coverage, Sector
Health Care Equipment & Services
Interest Coverage, Industry
Health Care

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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.


Earnings Before Interest and Tax (EBIT)
The EBIT showed an overall increasing trend from 2020 to 2024. Starting at $7,022 million in 2020, it rose significantly to $8,723 million in 2021, followed by a slight decrease in 2022 to $8,620 million. However, it resumed growth in 2023 and 2024, reaching $8,745 million and $9,089 million respectively. This indicates a generally strengthening operating performance over the five-year period, despite a minor dip in 2022.
Interest Expenses
The company’s interest expenses exhibited a steady increase throughout the same period. Beginning at $784 million in 2020, interest costs rose marginally to $798 million in 2021, then increased more notably to $851 million in 2022. The trend accelerated in 2023 and 2024, with expenses climbing to $1,030 million and $1,185 million respectively. This rising cost of debt could imply higher borrowing levels or increased borrowing costs.
Interest Coverage Ratio
The interest coverage ratio, which measures the ability to meet interest payments from operating earnings, declined over the period. Starting at a healthy 8.96 in 2020, the ratio improved to 10.93 in 2021, reflecting stronger EBIT relative to interest expenses. However, it began to deteriorate from 2022 onwards, dropping to 10.13, then further to 8.49 in 2023, and reaching 7.67 in 2024. This downward trend suggests that despite increasing EBIT, the rise in interest expenses is outpacing earnings growth, leading to a reduced margin of safety for interest payments.
Overall Insights
The data depicts a company with improving operational earnings but facing increasing financing costs. While EBIT has grown modestly, interest expenses have risen at a faster rate, resulting in a declining interest coverage ratio. This trend could signal growing financial leverage or higher interest rates affecting the company’s debt service capacity. Continuous monitoring of interest coverage is advisable to ensure financial stability and to prevent potential liquidity issues.

Fixed Charge Coverage

Elevance Health Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Shareholders’ net income
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Add: Interest expenses
Earnings before interest and tax (EBIT)
Add: Operating lease expense
Earnings before fixed charges and tax
 
Interest expenses
Operating lease expense
Fixed charges
Solvency Ratio
Fixed charge coverage1
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Fixed Charge Coverage, Sector
Health Care Equipment & Services
Fixed Charge Coverage, Industry
Health Care

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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

2 Click competitor name to see calculations.


Earnings before fixed charges and tax
The earnings before fixed charges and tax demonstrated a generally increasing trend over the five-year period. Starting at 7,460 million USD in 2020, the figure rose to 8,984 million USD in 2021. Although there was a slight decline to 8,763 million USD in 2022, the earnings recovered to 8,900 million USD in 2023 and further increased to 9,236 million USD in 2024. This pattern indicates overall growth with minor fluctuations in the middle years.
Fixed charges
Fixed charges exhibited a somewhat variable trend. Initially, fixed charges decreased from 1,222 million USD in 2020 to 1,059 million USD in 2021, continuing downward to 994 million USD in 2022. However, they rose again to 1,185 million USD in 2023 and increased further to 1,332 million USD in 2024. This reversal after 2022 suggests a resurgence in fixed obligations or associated costs in the later years.
Fixed charge coverage ratio
The fixed charge coverage ratio showed an overall declining trend after peaking in the early years. It improved from 6.1 times in 2020 to 8.48 in 2021 and peaked slightly higher at 8.82 in 2022, indicating strong coverage of fixed charges by earnings in that period. However, the ratio decreased to 7.51 in 2023 and further to 6.93 in 2024, suggesting reduced margin of safety in covering fixed charges despite revenues recovering. This ratio movement may reflect the impact of the increasing fixed charges in the last two years.