Stock Analysis on Net

Elevance Health Inc. (NYSE:ELV)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Elevance Health Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 16.79% 16.79% 17.09% 19.71% 18.77%
Operating profit margin 4.47% 4.94% 5.15% 4.97% 5.49%
Net profit margin 3.52% 3.87% 4.46% 3.78% 4.66%
Return on Investment
Return on equity (ROE) 15.23% 16.59% 16.93% 13.77% 15.15%
Return on assets (ROA) 5.50% 5.86% 6.26% 5.28% 6.21%

Based on: 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), 10-K (reporting date: 2019-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Elevance Health Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Elevance Health Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Elevance Health Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Elevance Health Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Elevance Health Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

Elevance Health Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 28,586 26,138 23,403 23,810 19,363
Operating revenue 170,209 155,660 136,943 120,808 103,141
Profitability Ratio
Gross profit margin1 16.79% 16.79% 17.09% 19.71% 18.77%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 50.28% 51.54% 52.21% 50.49% 52.46%
Cigna Group 12.37% 12.44% 12.41% 14.43% 15.57%
CVS Health Corp. 14.94% 16.62% 17.48% 18.01% 17.41%
Danaher Corp. 58.74% 60.21% 60.95% 55.98% 55.74%
Intuitive Surgical Inc. 66.39% 67.44% 69.32% 65.65% 69.45%
Medtronic PLC 65.67% 67.98% 65.19% 67.41% 70.04%
UnitedHealth Group Inc. 23.64% 24.09% 23.60% 25.62% 23.19%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenue
= 100 × 28,586 ÷ 170,209 = 16.79%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Elevance Health Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Operating Profit Margin

Elevance Health Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 7,614 7,685 7,048 5,999 5,661
Operating revenue 170,209 155,660 136,943 120,808 103,141
Profitability Ratio
Operating profit margin1 4.47% 4.94% 5.15% 4.97% 5.49%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 16.15% 19.16% 19.56% 15.48% 14.21%
Cigna Group 4.40% 4.69% 4.60% 5.12% 5.31%
CVS Health Corp. 3.85% 2.41% 4.54% 5.19% 4.69%
Danaher Corp. 21.77% 27.61% 25.35% 18.99% 18.25%
Humana Inc. 3.81% 4.11% 3.80% 6.56% 4.96%
Intuitive Surgical Inc. 24.80% 25.35% 31.89% 24.09% 30.69%
Medtronic PLC 17.56% 18.15% 14.89% 16.57% 20.51%
UnitedHealth Group Inc. 8.80% 8.83% 8.40% 8.76% 8.19%
Operating Profit Margin, Sector
Health Care Equipment & Services 6.57% 6.79% 7.20% 7.31% 7.11%
Operating Profit Margin, Industry
Health Care 9.45% 13.29% 13.19% 10.52% 12.41%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenue
= 100 × 7,614 ÷ 170,209 = 4.47%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Elevance Health Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Elevance Health Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,987 6,025 6,104 4,572 4,807
Operating revenue 170,209 155,660 136,943 120,808 103,141
Profitability Ratio
Net profit margin1 3.52% 3.87% 4.46% 3.78% 4.66%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 14.27% 15.88% 16.42% 12.99% 11.56%
Cigna Group 2.66% 3.72% 3.11% 5.31% 3.35%
CVS Health Corp. 2.34% 1.29% 2.72% 2.68% 2.59%
Danaher Corp. 19.94% 22.91% 21.84% 16.36% 16.80%
Humana Inc. 2.36% 3.03% 3.54% 4.43% 4.20%
Intuitive Surgical Inc. 25.24% 21.25% 29.85% 24.33% 30.80%
Medtronic PLC 12.03% 15.90% 11.97% 16.56% 15.16%
UnitedHealth Group Inc. 6.09% 6.25% 6.06% 6.03% 5.76%
Net Profit Margin, Sector
Health Care Equipment & Services 4.66% 5.09% 5.42% 5.46% 5.09%
Net Profit Margin, Industry
Health Care 8.11% 10.32% 10.91% 7.86% 10.19%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Shareholders’ net income ÷ Operating revenue
= 100 × 5,987 ÷ 170,209 = 3.52%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Elevance Health Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Elevance Health Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,987 6,025 6,104 4,572 4,807
Shareholders’ equity 39,306 36,307 36,060 33,199 31,728
Profitability Ratio
ROE1 15.23% 16.59% 16.93% 13.77% 15.15%
Benchmarks
ROE, Competitors2
Abbott Laboratories 14.83% 18.90% 19.75% 13.71% 11.86%
Cigna Group 11.17% 14.86% 11.39% 16.81% 11.26%
CVS Health Corp. 10.91% 5.84% 10.54% 10.35% 10.39%
Danaher Corp. 8.91% 14.39% 14.24% 9.17% 9.94%
Humana Inc. 15.31% 18.33% 18.24% 24.53% 22.49%
Intuitive Surgical Inc. 13.51% 11.98% 14.32% 10.90% 16.69%
Medtronic PLC 7.30% 9.59% 7.01% 9.44% 9.25%
UnitedHealth Group Inc. 25.22% 25.87% 24.09% 23.52% 24.02%
ROE, Sector
Health Care Equipment & Services 14.25% 15.23% 14.96% 14.51% 13.87%
ROE, Industry
Health Care 18.01% 22.38% 22.87% 16.20% 21.01%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 5,987 ÷ 39,306 = 15.23%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Elevance Health Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Elevance Health Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,987 6,025 6,104 4,572 4,807
Total assets 108,928 102,772 97,460 86,615 77,453
Profitability Ratio
ROA1 5.50% 5.86% 6.26% 5.28% 6.21%
Benchmarks
ROA, Competitors2
Abbott Laboratories 7.82% 9.31% 9.40% 6.20% 5.43%
Cigna Group 3.38% 4.63% 3.46% 5.44% 3.28%
CVS Health Corp. 3.34% 1.82% 3.39% 3.11% 2.98%
Danaher Corp. 5.64% 8.55% 7.73% 4.79% 4.85%
Humana Inc. 5.29% 6.52% 6.61% 9.63% 9.31%
Intuitive Surgical Inc. 11.64% 10.19% 12.58% 9.50% 14.17%
Medtronic PLC 4.13% 5.54% 3.87% 5.28% 5.16%
UnitedHealth Group Inc. 8.18% 8.19% 8.15% 7.81% 7.96%
ROA, Sector
Health Care Equipment & Services 5.51% 5.87% 5.80% 5.54% 5.16%
ROA, Industry
Health Care 6.45% 8.39% 8.25% 5.52% 7.21%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 5,987 ÷ 108,928 = 5.50%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Elevance Health Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.