Elevance Health Inc. (NYSE:ELV)

The financial data reveals several distinct trends in profitability and efficiency metrics over the analyzed period. The focus is on gross profit margin, operating profit margin, net profit margin, return on equity (ROE), and return on assets (ROA), each reflecting different aspects of financial performance.

Gross Profit Margin

This margin exhibits a general downward trend starting from approximately 19.7% in early 2020, declining steadily over the subsequent quarters. By the end of the observed period in mid-2025, it falls to around 14.9%, reflecting a reduction of nearly 5 percentage points. The decline seems gradual but consistent, indicating potential pressure on cost of goods sold relative to revenue or changes in pricing strategy and product mix.

Operating Profit Margin

The operating profit margin fluctuates within a narrower range, starting near 5% in early 2020 and peaking at about 5.15% in late 2021. Following this peak, it experiences a mild decline to approximately 3.8% by mid-2025. Although more volatile, the overall pattern reflects a mild erosion of operational efficiency or increased operating expenses relative to revenue over the longer term.

Net Profit Margin

Net profit margin shows some variability, rising modestly from 3.8% at the beginning of 2020 to a high of roughly 4.5% in early 2022. After this peak, a gradual downward movement is evident, reaching around 2.9% by mid-2025. This reduction suggests increased costs, tax impacts, or other non-operating influences diminishing the final profitability retained by the company.

Return on Equity (ROE)

The ROE metric demonstrates a solid performance up to late 2021, climbing from about 13.8% to near 17.4%. This indicates effective use of shareholder equity to generate profit during this phase. Post-2021, there is a slow but steady decline, dropping to around 12.3% by mid-2025, signaling reduced efficiency in generating returns for equity holders over time.

Return on Assets (ROA)

Consistent with ROE, ROA increases initially from approximately 5.3% to over 6% by late 2021, reflecting improved asset utilization. Subsequently, it trends downward to about 4.4% at the end of the period under review. The ROA decline illustrates a gradual decrease in asset efficiency or increased asset base not fully matched by net income generation.

In summary, the financial indicators reveal an initial phase of improving profitability and efficiency followed by a steady deterioration in margins and return measures. This shift suggests emerging challenges in maintaining cost controls, operational efficiency, and asset utilization. Continuous monitoring of cost structures, pricing strategies, and capital deployment may be necessary to address the downward trends observed in profitability and returns.

The financial data reveals several notable trends in the company's quarterly performance over the examined periods.

Gross Profit

The gross profit exhibited fluctuations throughout the quarters from March 2020 to June 2025. Initially, there was a significant increase from 5,975 million US dollars in March 2020 to a peak of 7,406 million US dollars by June 2020. However, the following quarters saw a decline, reaching a lower point around December 2020 with approximately 4,923 million US dollars. From 2021 onwards, gross profit stabilized with minor ups and downs, showing recurring peaks around the first quarters of each year (e.g., 7,631 million in March 2023 and 7,902 million in March 2024). The last two recorded quarters show divergent trends: a notable dip to 5,477 million in March 2025 followed by a strong rebound to 7,422 million in June 2025.

Operating Revenue

Operating revenue displayed an overall upward trajectory during the entire period. Starting from approximately 29,448 million US dollars in March 2020, it slightly fluctuated within the initial quarters but generally trended upward to reach 49,421 million US dollars by June 2025. The progression features steady quarter-to-quarter increases with occasional minor slowdowns or plateau phases, such as between December 2022 and March 2023, where values hovered around 39,600 to 41,800 million US dollars. The growth trend remained consistent through 2024 and early 2025.

Gross Profit Margin

The gross profit margin is only available starting from September 2020 and largely demonstrates a declining to stable trend. Initial values around 19.71% in September 2020 gradually dropped over subsequent quarters, moving into mid-to-high sixteen percent ranges throughout 2021 and 2022. From 2023 onwards, the margin mostly oscillated around 16% to 17%, with a slight downward tendency toward the last recorded quarters. By June 2025, the margin fell to approximately 14.93%, indicating a potential squeeze on profitability despite growing operating revenues.

In summary, while operating revenue has steadily increased over the analyzed timeline, gross profit has shown periodic variability with an overall pattern of peaks in early quarters and troughs in later ones within years. The gross profit margin experienced a gradual decline from near 20% to below 15%, implying rising costs or changes in revenue composition impacting profitability ratios. These findings suggest that although top-line revenue growth is strong, the company faces challenges in maintaining profit efficiency over time.

The financial data reveals several trends and patterns across the reported quarters.

Operating Income

The operating income demonstrates considerable volatility over the period. There are notable peaks and troughs, with particularly high values observed in some quarters (e.g., over 3,000 million in mid-2020 and early 2024) and sharp declines in others (e.g., below 500 million in late 2024). Such fluctuations suggest variability in the company's core profitability, potentially influenced by seasonal factors, one-time events, or cost management issues. Despite these variations, periods of strong operating income are evident, typically accompanied by corresponding revenues.

Operating Revenue

The operating revenue overall shows a steady upward trend across the timespan, increasing from around 29,400 million in early 2020 to nearly 49,500 million by mid-2025. This consistent growth indicates an expanding top line, reflecting either increased sales volumes, pricing power, or market expansion. The increment appears gradual and continuous, signaling stable demand or successful business development initiatives.

Operating Profit Margin

Operating profit margin values are available starting from late 2020. These margins mostly range between approximately 3.7% and 5.2%, with a general slight downward trend observed toward the later quarters. Initially, margins hovered near 5%, with some fluctuations but tend to decline to lower levels (around 3.7% by mid-2025). This trend could indicate increasing costs relative to revenue or reduced pricing power, even as revenues grow. The margin variability, combined with uneven operating income, suggests a need to monitor cost control or efficiency measures.

In summary, while revenue shows consistent growth over the quarters, operating income exhibits significant variability, and operating profit margins display a modest decline over time. These patterns highlight the importance of focusing on profitability stabilization and cost management, despite the positive sales trajectory.

The financial data displays several notable trends in the analyzed periods. Operating revenue shows a generally upward trajectory over the examined quarters, exhibiting steady growth from approximately 29.4 billion US dollars in early 2020 to nearly 49.4 billion US dollars by mid-2025. This consistent increase reflects expanding business operations or improved market positioning over time.

Shareholders’ net income, however, demonstrates considerable volatility. Beginning with a moderate figure in the early quarters of 2020, the net income experiences sharp fluctuations, peaking significantly at various points such as the first quarter of 2021 and mid-2024. Interspersed within these highs are marked declines, notably in late 2020 and toward the end of 2024 and mid-2025. This irregular pattern contrasts with the steady growth in revenue and suggests variability in profitability, possibly due to changes in cost management, one-time charges, or market conditions affecting margins.

The net profit margin percentages provided from late 2020 onwards reveal relatively stable margins in the range of approximately 3.2% to 4.5%, with a slight declining trend toward the most recent periods. Margins peak around 4.46% in early 2022 but gradually trend downward to below 3% by mid-2025. This incline followed by a decline indicates an initial improvement in profitability relative to revenue that diminishes over time, which may imply increasing cost pressures or competitive factors impacting earnings efficiency.

Operating Revenue

Shows consistent quarterly growth from roughly 29.4 billion to nearly 49.4 billion US dollars over five years, indicating business expansion.

Shareholders’ Net Income

Exhibits high volatility with several peaks and troughs; does not follow the steady growth pattern of revenue, highlighting fluctuating profitability.

Net Profit Margin

Ranges mostly between 3.2% and 4.5%, with an observable slight declining trend in the final periods, suggesting increasing operational cost challenges or margin compression.

In summary, the company’s revenue base expands significantly over the period, but net income and profitability margins show more variability and a modest downward trend recently. This divergence implies that while top-line growth is robust, maintaining or improving net profitability may require enhanced cost control or operational efficiencies going forward.

The analysis of the financial data over the observed periods reveals the following patterns and insights regarding the company's performance and financial position:

Shareholders’ Net Income

The net income displayed significant volatility across the quarters. Early in the period, there was a notable spike in June 2020, reaching 2,276 million US dollars, contrasting sharply with the preceding quarter’s 1,523 million. This was followed by a steep decline to 222 million in September 2020, before gradually rising again. From March 2021 to December 2021, net income fluctuated moderately, reaching 1,509 million before declining to 1,137 million. The trend continued with variability into the years 2022 and 2023, including a peak of 1,989 million in March 2023 and a subsequent decrease to 856 million by December 2023. In 2024, net income showed recovery, peaking again at 2,300 million in June, then dropping significantly to 418 million in March 2025 before rebounding to 1,743 million by June 2025. These fluctuations suggest the company faced varying profitability across quarters, likely influenced by external market factors or internal operational changes.

Shareholders’ Equity

Shareholders’ equity showed a steady upward trend over the entire period, increasing from 31,693 million US dollars in March 2020 to a high of 43,775 million by September 2024. Despite this general increase, some quarters near the end of the timeline showed slight declines, such as a drop to 41,315 million in March 2025 before rising again to 43,722 million in June 2025. The steady increase in equity reflects accumulation of retained earnings and possibly other comprehensive income, signaling strengthening financial stability and capital base.

Return on Equity (ROE)

ROE values were mostly available from March 2021 onwards, displaying a generally positive but gently declining trend. Starting with 13.77% in March 2021, ROE rose to a peak of 17.36% in June 2022. Subsequently, it exhibited a gradual decline, ending at 12.26% in June 2025. This indicates that while the company was able to generate solid returns on shareholders' equity initially, the efficiency in generating profits from equity diminished somewhat in the later years, which may reflect challenges in maintaining profitability growth commensurate with equity growth.

In summary, the company experienced significant fluctuations in net income, with periods of strong profitability interspersed with sharp declines. Meanwhile, shareholders’ equity grew steadily, indicating a solid capital foundation. Return on equity reached a peak in mid-2022 but showed some decline thereafter, suggesting slightly decreasing profit efficiency relative to equity employed. The overall financial trends highlight the company’s resilience but also underscore the need for scrutiny of factors affecting income volatility and efficiency in equity utilization.

The data reveals several observable trends concerning the company’s quarterly financial performance over the analyzed periods.

Shareholders’ Net Income

The net income exhibits significant volatility across quarters. Early data points from 2020 show notable fluctuations, with a peak in the second quarter of 2020 followed by a sharp decline in the third quarter of that year. Starting from 2021, the net income maintains a generally higher level compared to early 2020 but continues to demonstrate variability. Noteworthy peaks occur in the first quarters of 2023 and 2024, reaching values near or above 2,000 million US dollars. However, some quarters show marked decreases, particularly in certain late quarters where net income dips below 900 million US dollars, indicating episodic profitability pressures or one-off factors impacting earnings. Overall, net income does not follow a clear upward or downward trend but fluctuates within a broad range across the periods examined.

Total Assets

Total assets have shown a consistent upward trajectory over the entire span of the data. Starting from approximately 82,399 million US dollars at the first quarter in 2020, assets increase steadily with minor quarterly variations. By the end of the dataset, total assets exceed 121,000 million US dollars, indicating sustained growth in the asset base. This trend suggests ongoing investments or acquisitions and possibly an expanding operational scale or asset quality maintenance over time.

Return on Assets (ROA)

Return on Assets data, available from late 2020 onwards, displays moderate stability within a relatively narrow range. Initial ROA values are around 5.3% to 5.6%, with a slight increasing tendency reaching a peak close to 6.26% in the first quarter of 2022. Following this peak, ROA gradually declines, settling around the mid-5% range through 2023 and 2024, with a modest downward trend toward the end of the period. The ROA changes correlate with the fluctuating net income but are moderated by the growing asset base. This suggests that while profitability varies quarter to quarter, asset utilization efficiency remains fairly consistent with slight signs of diminishing return toward the latter periods.

In summary, the company's total assets have grown steadily, while net income shows considerable quarterly variability without a definitive long-term incline or decline. The efficiency metric represented by ROA indicates generally stable profitability relative to assets, with minor decreases in later periods. These dynamics point to a business experiencing growth in scale alongside fluctuating earnings performance and consistent but slightly pressured asset returns.