Elevance Health Inc. (NYSE:ELV)

Debt to Equity Ratio

The debt to equity ratio displays relative stability from March 2021 through September 2024, generally fluctuating between 0.62 and 0.69. A notable increase occurs starting in the quarter ending December 2024, peaking at 0.76, before slightly decreasing but remaining elevated compared to previous periods. This suggests a modest rise in leverage in late periods.

Debt to Capital Ratio

The debt to capital ratio remains consistent at approximately 0.38 to 0.41 throughout most periods, indicating a steady balance between debt and overall capital structure. A slight increase is observed toward the later periods, reaching a high of 0.43 in December 2024, paralleling the trend in the debt to equity ratio. This points to a slight shift toward greater reliance on debt financing in recent quarters.

Debt to Assets Ratio

The debt to assets ratio remains nearly constant around 0.23 to 0.24 for the majority of the timeframe. However, an increase to 0.27 is seen in the quarter ending December 2024, followed by a minor decline, yet maintaining higher levels than in earlier periods. This pattern similarly indicates a modest growth in the proportion of assets financed by debt toward the end of the observed timeframe.

Financial Leverage

Financial leverage exhibits slight variability but shows a gradual declining trend from 2.83 in March 2021 to approximately 2.66 in September 2024. A reversal occurs thereafter, with ratios climbing back to around 2.83 by December 2024 and remaining near this level subsequently. This suggests initial deleveraging followed by a return to higher leverage levels in the latest quarters.

Interest Coverage

Interest coverage demonstrates noticeable fluctuations, peaking above 11.0 during early 2022, which reflects strong ability to meet interest obligations. Following this peak, there is a persistent downward trend starting mid-2023, falling to around 6.16 by September 2025. This decline indicates weakening earnings relative to interest expenses and potentially signals increasing strain on earnings to cover debt costs.

Total Debt

The total debt exhibits a generally increasing trend over the observed periods, rising from approximately $23.2 billion in early 2021 to over $32.1 billion by the end of 2025. There are minor fluctuations within some quarters, but the overall pattern is a steady upward progression. Notably, there is a significant increase toward the latter part of the timeline, particularly in the year 2025, where debt levels rise substantially compared to previous quarters.

Shareholders’ Equity

Shareholders’ equity shows a consistent upward movement from around $33.9 billion at the beginning of 2021 to nearly $44 billion by the end of 2025. The growth appears steady and gradual, with minor periodic variations. Despite the rising total debt, the equity base expands over time, suggesting continual reinvestment or retained earnings accumulation.

Debt to Equity Ratio

The debt to equity ratio remains relatively stable throughout the entire period, ranging mostly between 0.62 and 0.76. Initially, it hovers around 0.64 to 0.66 through 2021 and 2022, then fluctuates slightly but remains within a narrow band. A notable deviation occurs in 2025, where the ratio peaks at 0.76, corresponding with the marked increase in total debt. Overall, the ratio implies a moderate level of leverage that is fairly consistent over time, with some increased leverage in the latest intervals.

The financial data reveals trends in the leverage and capital structure of the company over multiple quarters from March 2021 to September 2025. Analysis of the debt and capital metrics provides insights into how the company manages its financing sources.

Total Debt

Total debt figures show a general upward trend over the analyzed period. Starting at approximately 23.2 billion US dollars in early 2021, debt levels fluctuate moderately within a range up to about 24.1 billion by the end of 2022. From 2023 onward, the company appears to increase its debt more aggressively, reaching over 32.1 billion by September 2025. This pattern suggests a strategy leaning towards leveraging more debt capital in later years, possibly to fund growth, investments, or other strategic initiatives.

Total Capital

Total capital also demonstrates consistent growth throughout the period. Beginning at roughly 57.1 billion US dollars in March 2021, the capital base grows steadily, maintaining increases each quarter, culminating near 76.1 billion by the third quarter of 2025. This sustained growth indicates the company is expanding its overall capital structure, combining debt and equity to support its operations or expansion efforts.

Debt to Capital Ratio

The debt to capital ratio maintains relative stability around 0.39 to 0.41 for the majority of the timeline, reflecting a balanced capital structure with a consistent level of leverage. Notably, there is a discernible increase in the ratio starting from late 2024 into 2025, peaking at approximately 0.43 and fluctuating slightly thereafter but remaining above 0.40. This shift implies a moderately higher reliance on debt financing relative to total capital in the most recent quarters, corresponding with the increase in total debt levels observed.

In summary, these trends depict a company that steadily increases its capital investment while maintaining a broadly stable capital structure ratio for an extended period. However, the latter phase shows a strategic tilt towards greater indebtedness, raising the leverage ratio above previous levels. Such movements could reflect planned expansion, refinancing activities, or changes in financial policy that increase the firm's financial risk profile moderately but could support growth and operational scaling.

The financial data reveals fluctuations in the company's key balance sheet metrics over a series of quarterly periods, specifically focusing on total debt, total assets, and the debt to assets ratio.

Total Debt

The total debt exhibits a generally increasing trend across the analyzed quarters. Beginning at approximately $23.2 billion, it remains relatively stable through the initial periods but starts to rise more noticeably from around 2023 onward. There is a marked jump in debt levels in the latter quarters, culminating near $32.1 billion by the end of the timeline. This suggests a strategic increase in leverage or possibly greater borrowing to support operations or investments.

Total Assets

Total assets show a steady upward trajectory throughout the periods. Starting at about $95.7 billion, the asset base expands gradually, reaching over $122.7 billion by the conclusion of the data set. The growth in assets points to ongoing expansion, investment, or asset accumulation, supporting business growth objectives and potentially enhancing the company's operational capacity.

Debt to Assets Ratio

The debt to assets ratio remains relatively stable overall, fluctuating between 0.22 and 0.27 across the quarters. Initially, the ratio hovers near 0.23-0.24, indicating a consistent balance between debt and asset levels. However, a slight elevation occurs in the later periods, peaking around 0.27, which coincides with the increased debt load noted previously. Despite the rise, the ratio does not shift dramatically, implying that asset growth keeps pace with increased debt, thereby maintaining a manageable leverage profile.

In summary, the company’s financial position demonstrates progressive asset growth alongside a moderate increase in debt. While debt levels rise considerably in the later periods, the accompanying asset growth helps maintain a relatively stable debt to assets ratio, suggesting prudent financial management in leveraging resources for expansion or other strategic initiatives.

The analysis of the financial data over the reported quarters reveals several notable trends pertinent to the company's financial position and capital structure.

Total Assets

Total assets exhibited a general upward trajectory from March 2021 through September 2025. Starting at approximately 95,683 million USD in March 2021, total assets increased steadily, reaching around 122,749 million USD by September 2025. This growth indicates an expanding asset base over the analyzed period, reflecting possible investment in operations, acquisitions, or growth in working capital.

Shareholders’ Equity

Shareholders’ equity also demonstrated a rising trend across the examined periods, though with some fluctuations. From about 33,853 million USD in March 2021, equity increased to a peak of approximately 43,775 million USD in September 2024, before showing a slight decline and stabilization around the 43,953 million USD mark by September 2025. This suggests that while the company is strengthening its equity base, it experienced some variability possibly due to dividend payments, share repurchases, or changes in retained earnings.

Financial Leverage

The financial leverage ratio, calculated as total assets divided by shareholders’ equity, fluctuated moderately throughout the period. Initially recorded at 2.83 in March 2021, the ratio dipped to around 2.68 in mid-2024, indicating a relatively lower use of debt or liabilities in the capital structure, before rising again to approximately 2.79 by September 2025. This pattern suggests some adjustments in the company's financing mix, with periods of deleveraging followed by slight increases in leverage, yet maintaining a generally stable leverage profile close to a multiple of about 2.7 to 2.9.

Overall, the company displays growth in total assets and shareholders' equity, accompanied by a stable financial leverage ratio. This points to a balanced approach to refinancing and growth, where asset expansion is supported by equity increments and moderate leverage fluctuations, maintaining financial stability and potentially enabling sustainable growth strategies.

The earnings before interest and tax (EBIT) exhibit a fluctuating trend over the observed periods. Initially, there is a notable peak in the second quarter of 2021, followed by a decrease towards the end of the same year. The first quarter of 2022 sees a recovery to levels above the previous year's corresponding quarter. The highest EBIT figures generally occur in the first quarters of each year, with the peak value observed in the first quarter of 2024. However, a downward trend can be seen towards the end of each year, with the fourth quarters often recording the lowest EBIT values. From 2023 through 2025, EBIT displays significant volatility with marked increases in the first quarters followed by sharp decreases at the year's end.

Interest expense demonstrates a steady increase throughout the entire timeline. Starting just under 200 million US dollars in early 2021, the interest expense consistently rises each quarter without any decline or plateau. By the last observed period in the third quarter of 2025, the interest expense exceeds 350 million US dollars, indicating a continual escalation in the cost of debt or interest-bearing liabilities.

Interest coverage ratios, which indicate the ability to cover interest expenses with EBIT, generally decline over time despite fluctuations in EBIT and interest expense. Early in the data set, the ratio peaks around 11 times coverage, reflecting strong earnings relative to interest obligations. However, this ratio trends downward persistently from 2023 onwards, falling below 7 times coverage by the mid-2025 period. This decline in interest coverage appears primarily driven by rising interest expenses coupled with increased variability and periodic reduction in EBIT. The decreasing ratio suggests a deterioration in the buffer available to meet interest payments, potentially indicating increased financial risk or leveraging over time.

EBIT

Shows strong seasonal variation with peaks generally in the first quarter and troughs in the last quarter of each year.

Experienced growth in early periods, a dip in late 2021, and resumed growth with increased volatility from 2023 onward.

Peaked notably in the first quarter of 2024 but exhibits sharp declines following these peaks.

Interest Expense

Exhibits a consistent upward trajectory without interruption across the entire time series.

Rises approximately 80% from early 2021 to the third quarter of 2025.

Interest Coverage Ratio

Initially strong with values above 10, indicating comfortable coverage of interest obligations.

Gradually declines post-2022, falling below 7 times coverage by mid-2025.

The downward trend reflects increasing interest costs combined with EBIT volatility.