Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Elevance Health Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the financial leverage and debt-related ratios over the examined periods reveals several key trends and fluctuations.
- Debt to Equity
- This ratio exhibits a generally stable range between approximately 0.60 and 0.70 for most periods. A gradual increase is observed starting from the end of 2023, reaching a peak of 0.76 by the quarter ending March 31, 2025, after which there is a slight decline to 0.71. This suggests a moderate increase in the proportion of debt financing relative to shareholders' equity in the most recent periods.
- Debt to Capital
- The ratio remains relatively steady around 0.38 to 0.41 for the majority of the periods, reflecting consistent debt levels in relation to the total capital. A slight upward movement is noted toward the latest quarters, ending at 0.41 in March 2025, coinciding with the increase seen in the debt to equity ratio.
- Debt to Assets
- Throughout the data timeline, this ratio stays fairly stable, fluctuating between 0.22 and 0.27. A minor increase toward the end, peaking at 0.27 in the quarter ending March 2025, indicates a slightly higher proportion of assets financed through debt in recent quarters. Overall, the company's assets are predominantly financed through a combination of equity and debt in a balanced manner.
- Financial Leverage
- This ratio maintains a range mostly between 2.55 and 2.9 across the periods. A modest upward trend is visible toward the end of the dataset, indicating that the company is leveraging its equity slightly more to finance assets. The highest observed value is 2.92 in March 2023, with minor fluctuations afterward, ending at 2.82 in March 2025.
- Interest Coverage
- Interest coverage data is unavailable for the earliest periods but shows strong performance in subsequent quarters. The ratio ranges from a low of approximately 7.14 to a high of 11.01, indicating the company's comfortable ability to meet interest obligations from operating earnings. The highest point occurs near mid-2022, but there is a gradual decrease from 2023 onward, ending at 7.14 in March 2025. Despite this downward trend, the coverage ratio remains at a level that suggests the company continues to comfortably service its debt interest.
In summary, the financial data reflects a company with stable leverage ratios and consistent use of debt within a reasonable range relative to equity, capital, and assets. While there is a recent moderate increase in leverage metrics toward the end of the observed period, interest coverage remains sufficient, indicating continued financial strength in servicing debt obligations. Monitoring future interest coverage trends will be important given the slight decline observed in the most recent quarters.
Debt Ratios
Coverage Ratios
Debt to Equity
Elevance Health Inc., debt to equity calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term borrowings | 250) | 365) | 360) | 225) | 1,575) | 225) | —) | 265) | 265) | 265) | 265) | 175) | 275) | 275) | 175) | 175) | —) | —) | 150) | —) | 1,075) | |||||||
| Current portion of long-term debt | 1,643) | 1,649) | 2,100) | 2,900) | 2,900) | 1,649) | 799) | —) | —) | 1,500) | 2,249) | 2,248) | 3,097) | 1,599) | 849) | 849) | 700) | 700) | 1,599) | 1,603) | 1,603) | |||||||
| Long-term debt, less current portion | 28,110) | 29,218) | 24,688) | 24,561) | 21,976) | 23,246) | 24,045) | 24,859) | 25,201) | 22,349) | 21,258) | 21,165) | 19,883) | 21,157) | 21,761) | 22,217) | 22,534) | 19,335) | 19,094) | 19,873) | 19,005) | |||||||
| Total debt | 30,003) | 31,232) | 27,148) | 27,686) | 26,451) | 25,120) | 24,844) | 25,124) | 25,466) | 24,114) | 23,772) | 23,588) | 23,255) | 23,031) | 22,785) | 23,241) | 23,234) | 20,035) | 20,843) | 21,476) | 21,683) | |||||||
| Shareholders’ equity | 42,503) | 41,315) | 43,775) | 42,191) | 40,608) | 39,306) | 38,423) | 38,205) | 37,356) | 36,307) | 35,991) | 35,812) | 35,975) | 36,060) | 35,737) | 34,968) | 33,853) | 33,199) | 33,921) | 34,455) | 31,693) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.71 | 0.76 | 0.62 | 0.66 | 0.65 | 0.64 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.66 | 0.65 | 0.64 | 0.64 | 0.66 | 0.69 | 0.60 | 0.61 | 0.62 | 0.68 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 0.27 | 0.30 | 0.38 | 0.38 | 0.38 | 0.38 | 0.41 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.48 | 0.50 | 0.53 | 0.55 | 0.55 | 0.57 | 0.59 | 0.64 | 0.60 | |||||||
| CVS Health Corp. | 0.84 | 0.88 | 0.87 | 0.89 | 0.87 | 0.81 | 0.83 | 0.88 | 0.82 | 0.74 | 0.74 | 0.73 | 0.76 | 0.75 | 0.79 | 0.81 | 0.87 | 0.93 | 0.97 | 1.05 | 1.10 | |||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Medtronic PLC | 0.58 | 0.50 | 0.49 | 0.49 | 0.49 | 0.47 | 0.55 | 0.51 | 0.44 | 0.46 | 0.48 | 0.49 | 0.50 | 0.51 | 0.60 | 0.60 | 0.57 | 0.49 | 0.49 | 0.51 | 0.52 | |||||||
| UnitedHealth Group Inc. | 0.86 | 0.83 | 0.83 | 0.84 | 0.85 | 0.70 | 0.75 | 0.80 | 0.87 | 0.74 | 0.65 | 0.71 | 0.65 | 0.64 | 0.67 | 0.70 | 0.70 | 0.66 | 0.67 | 0.72 | 0.91 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 30,003 ÷ 42,503 = 0.71
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends regarding the company's debt and equity structure over the observed periods.
- Total Debt
- The total debt fluctuated moderately between March 2020 and December 2021, initially decreasing from 21,683 million USD to 20,035 million USD by the end of 2020, followed by an upward trend to 23,031 million USD by December 2021. From 2022 onwards, total debt maintained a generally increasing trajectory with some volatility, reaching the highest value of 31,232 million USD in December 2024 before a slight reduction to 30,003 million USD in March 2025. This indicates a pattern of growing leverage by the end of the observed period.
- Shareholders' Equity
- Shareholders' equity demonstrated a consistent upward trend throughout the analyzed quarters. Starting at 31,693 million USD in March 2020, equity steadily increased to 36,060 million USD by December 2021 and continued rising to peak at 43,775 million USD in September 2024. There was a slight dip to 41,315 million USD in December 2024, followed by a recovery to 42,503 million USD by March 2025. Overall, this reflects solid growth in the company’s net worth across the period.
- Debt to Equity Ratio
- The debt to equity ratio exhibited relative stability with minor fluctuations. Beginning at 0.68 in March 2020, the ratio decreased to 0.60 by December 2020, indicating a reduction in leverage relative to equity in that interval. It then oscillated around the mid-0.60s through 2021 to 2023, maintaining between 0.62 and 0.68, suggesting a balanced approach to funding via debt and equity. However, the ratio saw a noticeable increase towards the end of the timeline, peaking at 0.76 in December 2024 before declining slightly to 0.71 in March 2025. This increase corresponds to the significant rise in total debt observed in late 2024, signaling a shift toward greater financial leverage during that period.
In summary, the data indicates a company that has generally increased both its debt and equity over the five-year horizon, with equity growing at a relatively steady rate, while debt shows more variability and a distinct upward trend toward the later years. The debt to equity ratio reflects this dynamic, remaining fairly consistent for most of the period but showing signs of increased leverage in the final quarters.
Debt to Capital
Elevance Health Inc., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term borrowings | 250) | 365) | 360) | 225) | 1,575) | 225) | —) | 265) | 265) | 265) | 265) | 175) | 275) | 275) | 175) | 175) | —) | —) | 150) | —) | 1,075) | |||||||
| Current portion of long-term debt | 1,643) | 1,649) | 2,100) | 2,900) | 2,900) | 1,649) | 799) | —) | —) | 1,500) | 2,249) | 2,248) | 3,097) | 1,599) | 849) | 849) | 700) | 700) | 1,599) | 1,603) | 1,603) | |||||||
| Long-term debt, less current portion | 28,110) | 29,218) | 24,688) | 24,561) | 21,976) | 23,246) | 24,045) | 24,859) | 25,201) | 22,349) | 21,258) | 21,165) | 19,883) | 21,157) | 21,761) | 22,217) | 22,534) | 19,335) | 19,094) | 19,873) | 19,005) | |||||||
| Total debt | 30,003) | 31,232) | 27,148) | 27,686) | 26,451) | 25,120) | 24,844) | 25,124) | 25,466) | 24,114) | 23,772) | 23,588) | 23,255) | 23,031) | 22,785) | 23,241) | 23,234) | 20,035) | 20,843) | 21,476) | 21,683) | |||||||
| Shareholders’ equity | 42,503) | 41,315) | 43,775) | 42,191) | 40,608) | 39,306) | 38,423) | 38,205) | 37,356) | 36,307) | 35,991) | 35,812) | 35,975) | 36,060) | 35,737) | 34,968) | 33,853) | 33,199) | 33,921) | 34,455) | 31,693) | |||||||
| Total capital | 72,506) | 72,547) | 70,923) | 69,877) | 67,059) | 64,426) | 63,267) | 63,329) | 62,822) | 60,421) | 59,763) | 59,400) | 59,230) | 59,091) | 58,522) | 58,209) | 57,087) | 53,234) | 54,764) | 55,931) | 53,376) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.41 | 0.43 | 0.38 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.40 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | 0.38 | 0.38 | 0.38 | 0.41 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 0.21 | 0.23 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.31 | 0.31 | 0.32 | 0.31 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | 0.36 | 0.37 | 0.39 | 0.38 | |||||||
| CVS Health Corp. | 0.46 | 0.47 | 0.47 | 0.47 | 0.46 | 0.45 | 0.45 | 0.47 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | 0.43 | 0.44 | 0.45 | 0.47 | 0.48 | 0.49 | 0.51 | 0.52 | |||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Medtronic PLC | 0.37 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.34 | 0.37 | 0.37 | 0.36 | 0.33 | 0.33 | 0.34 | 0.34 | |||||||
| UnitedHealth Group Inc. | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.41 | 0.43 | 0.44 | 0.46 | 0.43 | 0.39 | 0.41 | 0.39 | 0.39 | 0.40 | 0.41 | 0.41 | 0.40 | 0.40 | 0.42 | 0.48 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 30,003 ÷ 72,506 = 0.41
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's capital structure over the observed periods. The total debt exhibited fluctuations but generally demonstrated an upward trajectory from the beginning to the end of the timeline. Specifically, total debt began at approximately 21.7 billion US dollars at the end of the first quarter of 2020 and showed moderate variability, with several periods of both increases and slight decreases, ultimately reaching around 30 billion US dollars by the first quarter of 2025.
In parallel, total capital also increased steadily throughout the period under review. Starting at about 53.4 billion US dollars in the first quarter of 2020, total capital registered a consistent rise to approximately 72.5 billion US dollars by the first quarter of 2025. This indicates a gradual expansion of the company's capital base, pointing toward growth or increased financing activities.
The debt to capital ratio, which measures the proportion of debt within the total capital structure, displayed relative stability with minor variations. Initial values in 2020 ranged around 0.38 to 0.41, reflecting a moderate leverage level. Although the ratio hovered near 0.40 for a majority of the quarters, some increments were evident toward the end of the period, reaching 0.43 in the fourth quarter of 2024 and slightly declining to 0.41 by the first quarter of 2025. This pattern suggests that while debt levels increased, the increase in total capital somewhat offset greater leverage, maintaining a balanced capital structure overall.
Collectively, the data suggest a strategic approach to managing capital, balancing growth in financing with controlled debt levels. The steady increase in total capital alongside rising total debt points to possible ongoing investments or expansion activities financed by a blend of debt and other capital sources. Meanwhile, the relatively stable debt to capital ratio indicates prudent management of financial risk associated with leveraging.
- Total Debt Trends
- Exhibited an overall increase from roughly 21.7 billion to 30 billion US dollars over five years, with intermittent fluctuations.
- Total Capital Trends
- Showed consistent growth from about 53.4 billion to 72.5 billion US dollars, implying capital expansion.
- Debt to Capital Ratio Analysis
- Maintained relative stability near 0.40, indicating a balanced leverage level despite increasing debt and capital amounts.
- Implications
- The data indicate a controlled use of debt within a growing capital structure, suggesting effective management of financial leverage in support of corporate growth or investment strategies.
Debt to Assets
Elevance Health Inc., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term borrowings | 250) | 365) | 360) | 225) | 1,575) | 225) | —) | 265) | 265) | 265) | 265) | 175) | 275) | 275) | 175) | 175) | —) | —) | 150) | —) | 1,075) | |||||||
| Current portion of long-term debt | 1,643) | 1,649) | 2,100) | 2,900) | 2,900) | 1,649) | 799) | —) | —) | 1,500) | 2,249) | 2,248) | 3,097) | 1,599) | 849) | 849) | 700) | 700) | 1,599) | 1,603) | 1,603) | |||||||
| Long-term debt, less current portion | 28,110) | 29,218) | 24,688) | 24,561) | 21,976) | 23,246) | 24,045) | 24,859) | 25,201) | 22,349) | 21,258) | 21,165) | 19,883) | 21,157) | 21,761) | 22,217) | 22,534) | 19,335) | 19,094) | 19,873) | 19,005) | |||||||
| Total debt | 30,003) | 31,232) | 27,148) | 27,686) | 26,451) | 25,120) | 24,844) | 25,124) | 25,466) | 24,114) | 23,772) | 23,588) | 23,255) | 23,031) | 22,785) | 23,241) | 23,234) | 20,035) | 20,843) | 21,476) | 21,683) | |||||||
| Total assets | 119,717) | 116,889) | 116,533) | 112,988) | 111,894) | 108,928) | 110,478) | 109,168) | 109,040) | 102,772) | 103,026) | 100,877) | 100,486) | 97,460) | 98,060) | 96,097) | 95,683) | 86,615) | 86,574) | 87,976) | 82,399) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.25 | 0.27 | 0.23 | 0.25 | 0.24 | 0.23 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.26 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 0.16 | 0.17 | 0.20 | 0.20 | 0.20 | 0.20 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.27 | 0.29 | 0.27 | |||||||
| CVS Health Corp. | 0.25 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.25 | 0.26 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.31 | |||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Medtronic PLC | 0.31 | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | 0.30 | 0.29 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.31 | 0.31 | 0.31 | 0.27 | 0.28 | 0.28 | 0.29 | |||||||
| UnitedHealth Group Inc. | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.23 | 0.22 | 0.23 | 0.25 | 0.23 | 0.20 | 0.22 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.22 | 0.23 | 0.24 | 0.27 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 30,003 ÷ 119,717 = 0.25
2 Click competitor name to see calculations.
The financial data reveals several trends in the company’s leverage and asset base over the examined quarterly periods.
- Total Debt
- Total debt exhibited fluctuations, generally trending upward from the beginning to the end of the period. Starting at approximately $21.7 billion in March 2020, debt levels decreased slightly through the end of 2020, reaching a low near $20 billion in December 2020. Subsequently, debt increased more consistently, peaking near $31.2 billion in December 2024 before showing a modest decline to around $30 billion by March 2025. This indicates an overall increase in borrowing or liabilities over the five-year span, with periodic adjustments.
- Total Assets
- Total assets demonstrated a steady growth trend throughout the timeframe. Assets rose from about $82.4 billion in March 2020 to nearly $119.7 billion by March 2025, showing consistent accretion each quarter with relatively minor volatility. This growth suggests ongoing expansion or accumulation of asset base, supporting operational or strategic initiatives.
- Debt to Assets Ratio
- The debt to assets ratio remained relatively stable, fluctuating mainly between 0.22 and 0.27. Initially, the ratio was 0.26 in March 2020, followed by a slight decline to around 0.23 by late 2020. For the majority of subsequent quarters, the ratio maintained a narrow band primarily near 0.23 to 0.25, showing controlled leverage relative to assets despite rising debt. A maximum ratio of 0.27 was observed in March 2025, indicating a slight increase in leverage at the end of the period. Overall, this stability suggests the company managed its debt levels in proportion to its asset growth.
In summary, the company’s balance sheet showed growth in both assets and total debt over the examined periods, with the leverage ratio maintaining a fairly consistent range. The gradual increase in debt was aligned with a corresponding expansion in total assets, implying disciplined financial management with attention to maintaining a stable capital structure.
Financial Leverage
Elevance Health Inc., financial leverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 119,717) | 116,889) | 116,533) | 112,988) | 111,894) | 108,928) | 110,478) | 109,168) | 109,040) | 102,772) | 103,026) | 100,877) | 100,486) | 97,460) | 98,060) | 96,097) | 95,683) | 86,615) | 86,574) | 87,976) | 82,399) | |||||||
| Shareholders’ equity | 42,503) | 41,315) | 43,775) | 42,191) | 40,608) | 39,306) | 38,423) | 38,205) | 37,356) | 36,307) | 35,991) | 35,812) | 35,975) | 36,060) | 35,737) | 34,968) | 33,853) | 33,199) | 33,921) | 34,455) | 31,693) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 2.82 | 2.83 | 2.66 | 2.68 | 2.76 | 2.77 | 2.88 | 2.86 | 2.92 | 2.83 | 2.86 | 2.82 | 2.79 | 2.70 | 2.74 | 2.75 | 2.83 | 2.61 | 2.55 | 2.55 | 2.60 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 1.67 | 1.71 | 1.87 | 1.86 | 1.87 | 1.90 | 1.92 | 1.97 | 1.99 | 2.03 | 2.04 | 2.03 | 2.09 | 2.10 | 2.14 | 2.17 | 2.17 | 2.21 | 2.20 | 2.25 | 2.21 | |||||||
| CVS Health Corp. | 3.32 | 3.35 | 3.37 | 3.37 | 3.38 | 3.27 | 3.38 | 3.44 | 3.35 | 3.21 | 3.27 | 3.06 | 3.15 | 3.10 | 3.16 | 3.16 | 3.24 | 3.32 | 3.38 | 3.46 | 3.54 | |||||||
| Intuitive Surgical Inc. | 1.12 | 1.14 | 1.14 | 1.13 | 1.13 | 1.16 | 1.17 | 1.17 | 1.16 | 1.17 | 1.15 | 1.14 | 1.13 | 1.14 | 1.13 | 1.13 | 1.14 | 1.15 | 1.15 | 1.16 | 1.16 | |||||||
| Medtronic PLC | 1.87 | 1.79 | 1.75 | 1.75 | 1.77 | 1.77 | 1.83 | 1.80 | 1.71 | 1.73 | 1.75 | 1.76 | 1.78 | 1.81 | 1.92 | 1.91 | 1.87 | 1.79 | 1.79 | 1.80 | 1.81 | |||||||
| UnitedHealth Group Inc. | 3.26 | 3.22 | 3.17 | 3.20 | 3.28 | 3.08 | 3.34 | 3.40 | 3.49 | 3.16 | 3.26 | 3.16 | 3.04 | 2.96 | 3.03 | 3.05 | 3.09 | 3.01 | 2.93 | 3.03 | 3.32 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 119,717 ÷ 42,503 = 2.82
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals the following trends and insights:
- Total Assets
-
Total assets exhibited a generally upward trajectory over the period analyzed. Starting from US$82.399 billion in March 2020, total assets increased steadily, reaching a peak of approximately US$119.717 billion by March 2025. Despite minor fluctuations, such as a slight decrease between December 2021 and December 2023, the overall trend remains positive, reflecting growth in the asset base.
- Shareholders’ Equity
-
Shareholders’ equity also showed growth but with noticeable variability. Beginning at US$31.693 billion in March 2020, equity increased to around US$42.503 billion by March 2025. There were periods of slight decline or stagnation, particularly around late 2024 when equity dropped to US$41.315 billion before rising again. Overall, the equity growth supports the increase in total assets, though the fluctuations suggest periods of varying profitability or capital adjustments.
- Financial Leverage
-
The financial leverage ratio, defined as total assets divided by shareholders’ equity, fluctuated moderately throughout the period. Initially at 2.6 in March 2020, it rose to a maximum near 2.92 in March 2023. Post this peak, leverage slightly declined and stabilized around 2.8 towards the last reported quarters. The changes in this ratio reflect the dynamic balance between debt and equity financing, indicating relatively consistent leverage with slight increases during asset growth phases.
In summary, the company demonstrated consistent asset growth accompanied by rising shareholders’ equity, albeit with some variability. Financial leverage remained within a relatively narrow band, suggesting stable capital structure management despite the increases in scale. The trends underscore an expansionary financial position with controlled risk exposure through leverage.
Interest Coverage
Elevance Health Inc., interest coverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Shareholders’ net income | 2,183) | 418) | 1,016) | 2,300) | 2,246) | 856) | 1,289) | 1,853) | 1,989) | 949) | 1,618) | 1,653) | 1,805) | 1,137) | 1,509) | 1,793) | 1,665) | 551) | 222) | 2,276) | 1,523) | |||||||
| Add: Net income attributable to noncontrolling interest | 1) | (5) | (8) | 1) | 3) | (25) | 11) | 3) | 15) | 12) | (5) | (3) | (10) | (12) | (7) | 8) | 2) | —) | —) | —) | —) | |||||||
| Add: Income tax expense | 613) | 193) | 365) | 685) | 690) | 170) | 354) | 585) | 615) | 193) | 533) | 493) | 531) | 275) | 494) | 552) | 509) | 60) | 167) | 873) | 566) | |||||||
| Add: Interest expense | 344) | 340) | 300) | 280) | 265) | 259) | 259) | 261) | 251) | 229) | 213) | 208) | 201) | 200) | 201) | 205) | 192) | 191) | 198) | 201) | 194) | |||||||
| Earnings before interest and tax (EBIT) | 3,141) | 946) | 1,673) | 3,266) | 3,204) | 1,260) | 1,913) | 2,702) | 2,870) | 1,383) | 2,359) | 2,351) | 2,527) | 1,600) | 2,197) | 2,558) | 2,368) | 802) | 587) | 3,350) | 2,283) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 7.14 | 7.67 | 8.52 | 9.07 | 8.70 | 8.49 | 8.87 | 9.76 | 9.95 | 10.13 | 10.75 | 10.71 | 11.01 | 10.93 | 10.04 | 8.03 | 9.09 | 8.96 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 14.40 | 13.55 | 12.65 | 11.74 | 11.46 | 11.46 | 10.79 | 11.34 | 13.06 | 15.89 | 18.41 | 20.07 | 18.10 | 16.41 | 16.38 | 14.28 | 12.77 | 10.10 | — | — | — | |||||||
| CVS Health Corp. | 3.37 | 3.08 | 3.33 | 4.41 | 4.55 | 5.20 | 5.59 | 2.71 | 3.43 | 3.46 | 2.75 | 5.49 | 5.27 | 5.16 | 4.92 | 4.60 | 4.52 | 4.36 | — | — | — | |||||||
| Medtronic PLC | 7.65 | 7.73 | 8.87 | 8.97 | 9.90 | 9.43 | 10.15 | 11.02 | 10.88 | 10.98 | 10.95 | 10.18 | 5.65 | 5.21 | 3.68 | 4.02 | 6.60 | 4.71 | — | — | — | |||||||
| UnitedHealth Group Inc. | 7.94 | 6.14 | 6.39 | 6.79 | 7.53 | 9.97 | 10.21 | 10.99 | 12.25 | 13.59 | 14.66 | 14.45 | 14.26 | 14.44 | 13.46 | 13.03 | 14.88 | 13.47 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= (3,141 + 946 + 1,673 + 3,266)
÷ (344 + 340 + 300 + 280)
= 7.14
2 Click competitor name to see calculations.
The financial data reveals a fluctuating pattern in earnings before interest and tax (EBIT) over the quarters from March 2020 to March 2025. Initially, EBIT shows notable volatility, with a peak of 3350 million US dollars in June 2020, followed by a significant dip to 587 million in September 2020. Subsequent quarters exhibit recovery and varied oscillations, with notable peaks in March 2024 (3204 million) and June 2024 (3266 million), juxtaposed with troughs observed in December 2024 (946 million).
Interest expense demonstrates a gradual upward trend overall, increasing from 194 million in March 2020 to 344 million in March 2025. This steady rise in interest costs may suggest rising debt levels or increasing borrowing costs over the period analyzed.
The interest coverage ratio, which reflects the company's ability to cover interest expenses with EBIT, is only partially available for the periods starting September 2020. It starts at 8.96 and increases to a peak of 11.01 in June 2021, indicating a strong capacity to meet interest obligations during that period. However, the ratio subsequently declines to 7.14 by March 2025, suggesting a gradual reduction in the buffer available to cover interest expenses. This decline aligns with the observed increase in interest expenses and fluctuating EBIT, implying potentially increased financial risk or tighter earnings cushion to service debt.
- EBIT Trends
- Exhibited considerable volatility with multiple peaks and troughs; notable maxima in mid-2020 and mid-2024; intermittent declines leading to periods of reduced earning power.
- Interest Expense Trends
- Consistent upward progression over the five-year span, indicating rising financial costs potentially due to increased borrowing or higher interest rates.
- Interest Coverage Ratio
- Initially strong coverage exceeding 8 times interest expense, peaking just above 11, then declining gradually toward 7 times by the end of the period, highlighting a decreasing margin of safety for interest obligations.
Overall, the data suggests a need for careful monitoring of earnings stability and debt servicing capacity, given the observed EBIT fluctuations and rising interest expenses combined with a gradually weakening interest coverage ratio.