Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Elevance Health Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
The financial data indicates a period of relative stability in profitability from March 2022 through mid-2024, followed by a sustained contraction across all primary profit margins and return ratios. This downward trajectory is evident in both operational efficiency and overall returns on invested capital through September 2026.
- Gross Profit Margin
- The gross profit margin remained remarkably stable between 16.79% and 16.92% from March 2022 through March 2024, reaching a peak of 17.16% in June 2024. Subsequent to this peak, a consistent decline is observed, with the margin falling to 14.30% by September 2026. This represents a notable erosion of the primary margin over the final two years of the analyzed period.
- Operating and Net Profit Margins
- Operating profit margins exhibited a gradual decline from a high of 5.10% in March 2022 to 2.48% by September 2026. A more pronounced acceleration in this decline began in late 2024. Similarly, the net profit margin followed a mirrored path, decreasing from 4.37% in early 2022 to a low of 2.50% in June 2026, before a slight recovery to 2.58% in September 2026. The compression in these margins suggests increasing operational costs or pricing pressures that have outpaced revenue growth.
- Return on Equity (ROE)
- Return on equity reflects a significant reduction in the efficiency of generating profits from shareholders' equity. ROE began at 17.36% in March 2022 and maintained levels above 15% until late 2024. From March 2025 onward, a sharper downturn occurred, reaching a minimum of 11.06% in June 2026. This trend indicates a diminishing return on the capital invested by shareholders.
- Return on Assets (ROA)
- Return on assets mirrored the general downward trend, starting at 6.21% in March 2022. After maintaining a range between 5.50% and 5.92% for several quarters, the ratio dropped below 5% starting in early 2025. By September 2026, ROA reached 4.02%, signaling a decline in the company's ability to utilize its asset base to generate earnings.
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Gross Profit Margin
Elevance Health Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 7,021) | 7,310) | 8,416) | 5,724) | 6,567) | 7,422) | 8,470) | 5,477) | 6,677) | 7,831) | 7,902) | 6,283) | 7,226) | 7,446) | 7,631) | 5,930) | 6,784) | 6,636) | 6,788) | ||||||
| Operating revenue | 50,440) | 49,826) | 49,494) | 49,311) | 50,087) | 49,421) | 48,765) | 44,989) | 44,719) | 43,223) | 42,273) | 42,454) | 42,480) | 43,377) | 41,898) | 39,667) | 39,625) | 38,482) | 37,886) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 14.30% | 14.10% | 14.18% | 14.26% | 14.45% | 14.93% | 15.66% | 15.92% | 16.62% | 17.16% | 16.92% | 16.79% | 16.86% | 16.89% | 16.90% | 16.79% | 16.85% | 16.79% | 16.89% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | 52.49% | 52.53% | 52.62% | 51.96% | 51.90% | 51.50% | 50.93% | 50.96% | 50.53% | 50.27% | 50.28% | 49.97% | 50.23% | 50.66% | 51.54% | 52.60% | 53.54% | 52.44% | ||||||
| Intuitive Surgical Inc. | 67.19% | 66.68% | 66.29% | 66.00% | 66.38% | 66.61% | 67.09% | 67.46% | 66.98% | 66.86% | 66.43% | 66.39% | 66.61% | 66.74% | 66.86% | 67.44% | 67.77% | 68.16% | 68.84% | ||||||
| Medtronic PLC | 64.86% | 65.51% | 65.29% | 65.32% | 65.27% | 65.04% | 65.16% | 65.34% | 65.50% | 65.40% | 65.68% | 65.67% | 66.43% | 67.21% | 67.61% | 67.98% | 67.89% | 67.39% | 66.53% | ||||||
| UnitedHealth Group Inc. | — | 18.77% | 18.07% | 17.81% | 18.80% | 19.83% | 20.98% | 21.31% | 21.91% | 22.63% | 23.18% | 23.64% | 24.16% | 24.08% | 24.20% | 24.09% | 23.74% | 23.51% | 23.31% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (Operating revenueQ3 2026
+ Operating revenueQ2 2026
+ Operating revenueQ1 2026
+ Operating revenueQ4 2025)
= 100 × (7,021 + 7,310 + 8,416 + 5,724)
÷ (50,440 + 49,826 + 49,494 + 49,311)
= 14.30%
2 Click competitor name to see calculations.
The financial trajectory of the gross profit margin exhibits two distinct phases: a period of high stability followed by a sustained period of margin compression. While operating revenue demonstrates consistent growth over the analyzed period, the efficiency of converting that revenue into gross profit declines significantly in the latter half of the timeframe.
- Phase of Margin Stability (March 2022 – March 2024)
- During this interval, the gross profit margin remained exceptionally consistent, fluctuating within a narrow band between 16.79% and 16.92%. This indicates a period where the cost of goods sold scaled proportionally with operating revenue, maintaining a steady profitability baseline.
- Period of Margin Compression (June 2024 – June 2026)
- A clear downward trend is observed beginning after June 2024, where the margin peaked at 17.16%. From this point, the margin experienced a sequential decline, dropping to 15.92% by December 2024 and continuing to erode to a low of 14.10% by June 2026. This compression suggests that costs increased at a faster rate than revenue during this window.
- Revenue and Profitability Divergence
- There is a notable divergence between top-line growth and margin percentage. Operating revenue grew from 37,886 million US$ in March 2022 to 50,440 million US$ by September 2026. However, the gross profit margin did not scale with this growth; instead, it decreased by approximately 286 basis points from its peak in mid-2024 to its low in mid-2026.
- Recent Stabilization Trend (September 2026)
- The most recent data point indicates a potential inflection point, with the gross profit margin rising slightly to 14.30% in September 2026. This suggests a possible stabilization of costs or a slight improvement in operational efficiency following the prolonged period of contraction.
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Operating Profit Margin
Elevance Health Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating income | 1,163) | 1,653) | 1,974) | 145) | 1,133) | 2,278) | 3,015) | 493) | 1,286) | 2,603) | 2,900) | 1,067) | 1,544) | 2,407) | 2,596) | 1,121) | 2,045) | 2,201) | 2,318) | ||||||
| Operating revenue | 50,440) | 49,826) | 49,494) | 49,311) | 50,087) | 49,421) | 48,765) | 44,989) | 44,719) | 43,223) | 42,273) | 42,454) | 42,480) | 43,377) | 41,898) | 39,667) | 39,625) | 38,482) | 37,886) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 2.48% | 2.47% | 2.79% | 3.33% | 3.58% | 3.76% | 4.07% | 4.16% | 4.55% | 4.76% | 4.64% | 4.47% | 4.58% | 4.96% | 4.99% | 4.94% | 5.01% | 5.07% | 5.10% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | 15.77% | 17.07% | 18.17% | 17.59% | 17.43% | 16.84% | 16.27% | 16.24% | 15.92% | 15.76% | 16.15% | 15.02% | 15.23% | 16.77% | 19.16% | 20.95% | 22.42% | 20.73% | ||||||
| Intuitive Surgical Inc. | 28.37% | 31.28% | 30.45% | 29.27% | 29.30% | 28.80% | 28.20% | 28.12% | 26.24% | 25.79% | 25.26% | 24.80% | 24.66% | 24.34% | 24.21% | 25.35% | 27.05% | 28.48% | 30.69% | ||||||
| Medtronic PLC | 17.00% | 17.88% | 17.90% | 17.76% | 16.78% | 16.39% | 15.82% | 15.89% | 17.50% | 17.41% | 17.83% | 17.56% | 18.17% | 19.02% | 19.37% | 18.15% | 17.89% | 16.68% | 14.78% | ||||||
| UnitedHealth Group Inc. | — | 4.86% | 4.23% | 4.27% | 6.12% | 7.37% | 8.27% | 8.17% | 8.28% | 8.40% | 8.58% | 8.80% | 8.86% | 8.83% | 8.87% | 8.83% | 8.65% | 8.32% | 8.19% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2026
+ Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025)
÷ (Operating revenueQ3 2026
+ Operating revenueQ2 2026
+ Operating revenueQ1 2026
+ Operating revenueQ4 2025)
= 100 × (1,163 + 1,653 + 1,974 + 145)
÷ (50,440 + 49,826 + 49,494 + 49,311)
= 2.48%
2 Click competitor name to see calculations.
A comprehensive analysis of the financial performance between March 2022 and September 2026 reveals a divergent trend between revenue growth and operational profitability. While operating revenue demonstrates a consistent upward trajectory, the operating profit margin exhibits a sustained and accelerating decline over the period.
- Revenue Growth Trends
- Operating revenue grew steadily from 37,886 million US dollars in March 2022 to a peak of 50,440 million US dollars by September 2026. This represents a significant expansion in the scale of operations, characterized by relatively stable quarterly increases with few interruptions in growth momentum.
- Operating Income Volatility and Seasonality
- Operating income displays pronounced quarterly seasonality, with peak performance consistently occurring in the first quarter of each year and troughs typically appearing in the fourth quarter. However, the magnitude of these peaks has diminished over time; the March 2024 peak of 2,900 million US dollars declined to 1,974 million US dollars by March 2026, indicating that revenue growth is not translating into proportional income gains.
- Operating Profit Margin Compression
- The operating profit margin shows a clear long-term downward trend. Starting at 5.10% in March 2022, the margin remained relatively stable around the 5% mark through late 2022. A gradual erosion began in 2023, dropping to 4.47% by December 2023. This decline accelerated through 2024 and 2025, falling to 3.33% by December 2025. By the final reporting period in September 2026, the margin reached its lowest point at 2.48%.
The convergence of increasing revenue and decreasing operating margins suggests a systemic increase in operating expenses that outpaces the growth in top-line revenue. The contraction of the operating profit margin from 5.10% to 2.48% over the analyzed timeframe indicates a significant reduction in operational efficiency or an increase in the cost of delivering services.
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Net Profit Margin
Elevance Health Inc., net profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Shareholders’ net income | 1,365) | 1,463) | 1,764) | 547) | 1,189) | 1,743) | 2,183) | 418) | 1,016) | 2,300) | 2,246) | 856) | 1,289) | 1,853) | 1,989) | 949) | 1,618) | 1,653) | 1,805) | ||||||
| Operating revenue | 50,440) | 49,826) | 49,494) | 49,311) | 50,087) | 49,421) | 48,765) | 44,989) | 44,719) | 43,223) | 42,273) | 42,454) | 42,480) | 43,377) | 41,898) | 39,667) | 39,625) | 38,482) | 37,886) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 2.58% | 2.50% | 2.64% | 2.87% | 2.86% | 2.85% | 3.26% | 3.41% | 3.72% | 3.93% | 3.66% | 3.52% | 3.63% | 3.89% | 3.89% | 3.87% | 4.09% | 4.13% | 4.37% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | 11.65% | 13.91% | 14.72% | 31.88% | 32.43% | 31.89% | 31.95% | 13.99% | 13.65% | 13.96% | 14.27% | 12.92% | 12.83% | 13.98% | 15.88% | 17.52% | 18.78% | 17.35% | ||||||
| Intuitive Surgical Inc. | 25.54% | 28.45% | 28.15% | 28.38% | 28.58% | 28.51% | 28.41% | 27.81% | 28.51% | 27.65% | 27.16% | 25.24% | 22.14% | 21.38% | 20.40% | 21.25% | 22.52% | 24.05% | 27.84% | ||||||
| Medtronic PLC | 13.00% | 13.71% | 13.63% | 13.90% | 12.83% | 13.00% | 12.05% | 11.36% | 13.00% | 12.84% | 11.47% | 12.03% | 13.20% | 14.03% | 16.75% | 15.90% | 15.46% | 14.79% | 12.29% | ||||||
| UnitedHealth Group Inc. | — | 3.17% | 2.70% | 2.72% | 4.09% | 5.10% | 5.46% | 3.65% | 3.68% | 3.70% | 4.09% | 6.09% | 6.09% | 6.11% | 6.21% | 6.25% | 6.21% | 5.99% | 5.91% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Net profit margin = 100
× (Shareholders’ net incomeQ3 2026
+ Shareholders’ net incomeQ2 2026
+ Shareholders’ net incomeQ1 2026
+ Shareholders’ net incomeQ4 2025)
÷ (Operating revenueQ3 2026
+ Operating revenueQ2 2026
+ Operating revenueQ1 2026
+ Operating revenueQ4 2025)
= 100 × (1,365 + 1,463 + 1,764 + 547)
÷ (50,440 + 49,826 + 49,494 + 49,311)
= 2.58%
2 Click competitor name to see calculations.
An analysis of the financial performance from March 2022 through September 2026 reveals a divergence between revenue growth and net profitability. While operating revenue demonstrates a consistent upward trajectory, the net profit margin exhibits a sustained long-term decline, indicating that expenses are increasing at a rate that outpaces revenue growth.
- Operating Revenue Growth
- Operating revenue increased steadily from 37,886 million US$ in March 2022 to 50,440 million US$ by September 2026. This represents a consistent expansion of the top line throughout the observed period.
- Net Income Volatility
- Shareholders' net income displays significant quarterly fluctuations. Peak earnings typically occur in the first quarter of each year, while the fourth quarters consistently record the lowest net income levels, as evidenced by the declines to 949 million US$ in December 2022, 856 million US$ in December 2023, and 418 million US$ in December 2024.
- Net Profit Margin Compression
- The net profit margin has undergone a general downward trend, decreasing from 4.37% in March 2022 to 2.58% in September 2026. Although a temporary recovery to 3.93% occurred in June 2024, the margin entered a period of more pronounced decline starting in 2025, reaching a minimum of 2.50% in June 2026.
- Seasonal Profitability Patterns
- A recurring seasonal pattern is observable, characterized by margin contraction toward the end of each calendar year. The consistent dip in year-end profitability suggests a cyclical impact on the bottom line, which typically recovers in the first quarter of the following year.
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Return on Equity (ROE)
Elevance Health Inc., ROE calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Shareholders’ net income | 1,365) | 1,463) | 1,764) | 547) | 1,189) | 1,743) | 2,183) | 418) | 1,016) | 2,300) | 2,246) | 856) | 1,289) | 1,853) | 1,989) | 949) | 1,618) | 1,653) | 1,805) | ||||||
| Shareholders’ equity | 44,681) | 44,883) | 43,902) | 43,882) | 43,953) | 43,722) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 11.50% | 11.06% | 11.94% | 12.90% | 12.59% | 12.26% | 13.92% | 14.47% | 14.66% | 15.86% | 15.38% | 15.23% | 15.82% | 16.78% | 16.62% | 16.59% | 17.26% | 17.04% | 17.36% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | 10.61% | 12.06% | 12.51% | 27.43% | 27.65% | 27.66% | 28.12% | 14.49% | 14.13% | 14.51% | 14.83% | 13.77% | 13.88% | 15.68% | 18.90% | 22.11% | 23.44% | 21.82% | ||||||
| Intuitive Surgical Inc. | 18.50% | 17.28% | 17.05% | 16.02% | 16.23% | 14.61% | 14.47% | 14.13% | 14.39% | 14.23% | 14.24% | 13.51% | 12.10% | 12.00% | 11.70% | 11.98% | 11.97% | 11.93% | 13.58% | ||||||
| Medtronic PLC | 9.42% | 9.79% | 9.73% | 9.71% | 8.63% | 8.84% | 8.19% | 7.32% | 8.11% | 7.97% | 7.07% | 7.30% | 7.90% | 8.33% | 9.88% | 9.59% | 9.35% | 9.05% | 7.54% | ||||||
| UnitedHealth Group Inc. | — | 14.34% | 12.30% | 12.81% | 18.36% | 22.48% | 23.26% | 15.55% | 15.14% | 15.78% | 17.72% | 25.22% | 25.67% | 25.63% | 25.46% | 25.87% | 26.03% | 25.07% | 23.98% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
ROE = 100
× (Shareholders’ net incomeQ3 2026
+ Shareholders’ net incomeQ2 2026
+ Shareholders’ net incomeQ1 2026
+ Shareholders’ net incomeQ4 2025)
÷ Shareholders’ equity
= 100 × (1,365 + 1,463 + 1,764 + 547)
÷ 44,681 = 11.50%
2 Click competitor name to see calculations.
A comprehensive analysis of the profitability metrics reveals a sustained downward trend in the Return on Equity (ROE) over the analyzed period from March 31, 2022, to September 30, 2026. While the company maintains positive profitability, the efficiency with which equity is utilized to generate profit has diminished consistently.
- Return on Equity (ROE) Trend
- The ROE exhibited a gradual but persistent decline, starting at 17.36% in March 2022 and ending at 11.50% in September 2026. The ratio remained relatively stable above 16% throughout 2022, but entered a period of attrition starting in 2023. A notable acceleration in the decline occurred between March 2024 (15.38%) and June 2025 (12.26%), marking a shift toward a lower profitability baseline.
- Net Income Volatility
- Shareholders' net income demonstrates significant quarterly fluctuations and seasonal variability. Peak earnings typically occur in the first and second quarters of the year, with a recurring and sharp contraction in the fourth quarter. For instance, income dropped to a low of 418 million USD in December 2024 despite reaching 2.3 billion USD in June 2024. This inconsistency in the numerator contributes to the instability of the ROE throughout the fiscal years.
- Equity Growth and Capital Base
- Shareholders' equity shows a consistent and steady upward trajectory, increasing from 35,975 million USD in March 2022 to 44,681 million USD by September 2026. This growth indicates a strengthening capital base; however, the expansion of equity has outpaced the growth of net income. The widening gap between the expanding equity base and the volatile net income levels is the primary driver of the observed compression in the ROE.
- Profitability Correlation
- The inverse relationship between the rising equity levels and the declining ROE suggests that the company is experiencing diminishing marginal returns on its invested capital. The inability to scale net income proportionally with the growth in shareholders' equity has led to a reduction in overall financial efficiency over the five-year period.
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Return on Assets (ROA)
Elevance Health Inc., ROA calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Shareholders’ net income | 1,365) | 1,463) | 1,764) | 547) | 1,189) | 1,743) | 2,183) | 418) | 1,016) | 2,300) | 2,246) | 856) | 1,289) | 1,853) | 1,989) | 949) | 1,618) | 1,653) | 1,805) | ||||||
| Total assets | 127,801) | 126,438) | 125,827) | 121,494) | 122,749) | 121,938) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 4.02% | 3.93% | 4.17% | 4.66% | 4.51% | 4.40% | 4.94% | 5.12% | 5.51% | 5.92% | 5.58% | 5.50% | 5.50% | 5.87% | 5.69% | 5.86% | 6.03% | 6.05% | 6.21% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | 4.97% | 5.68% | 7.52% | 16.60% | 16.64% | 16.58% | 16.46% | 7.76% | 7.61% | 7.77% | 7.82% | 7.16% | 7.04% | 7.87% | 9.31% | 10.84% | 11.53% | 10.44% | ||||||
| Intuitive Surgical Inc. | 15.28% | 15.04% | 14.81% | 13.96% | 14.19% | 12.93% | 12.88% | 12.39% | 12.64% | 12.57% | 12.56% | 11.64% | 10.31% | 10.25% | 10.05% | 10.19% | 10.39% | 10.47% | 12.02% | ||||||
| Medtronic PLC | 5.04% | 5.22% | 5.12% | 5.09% | 4.73% | 4.76% | 4.38% | 4.09% | 4.63% | 4.55% | 3.99% | 4.13% | 4.32% | 4.63% | 5.79% | 5.54% | 5.35% | 5.13% | 4.23% | ||||||
| UnitedHealth Group Inc. | — | 4.56% | 3.85% | 3.89% | 5.58% | 6.90% | 7.14% | 4.83% | 4.78% | 4.93% | 5.40% | 8.18% | 7.69% | 7.53% | 7.30% | 8.19% | 7.99% | 7.93% | 7.89% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
ROA = 100
× (Shareholders’ net incomeQ3 2026
+ Shareholders’ net incomeQ2 2026
+ Shareholders’ net incomeQ1 2026
+ Shareholders’ net incomeQ4 2025)
÷ Total assets
= 100 × (1,365 + 1,463 + 1,764 + 547)
÷ 127,801 = 4.02%
2 Click competitor name to see calculations.
An analysis of the financial performance from March 2022 through September 2026 reveals a consistent downward trajectory in the Return on Assets (ROA). The ROA declined from a peak of 6.21% in March 2022 to 4.02% by September 2026, indicating a reduction in the efficiency with which assets are utilized to generate net income.
- Asset Base Expansion
- Total assets exhibited a steady and uninterrupted growth trend over the analyzed period. Starting at 100,486 million USD in March 2022, the asset base expanded to 127,801 million USD by September 2026. This represents a continuous increase in the company's resource base, which serves as the denominator in the ROA calculation.
- Net Income Volatility and Seasonality
- Shareholders’ net income demonstrated significant quarterly fluctuations and a recurring seasonal pattern. A consistent trend of diminished earnings is observed every fourth quarter, with notable lows occurring in December 2023 (856 million USD), December 2024 (418 million USD), and December 2025 (547 million USD). While peak quarterly earnings reached 2,300 million USD in June 2024, the volatility in the numerator prevents the ROA from stabilizing.
- ROA Erosion and Efficiency Trends
- The gradual erosion of the ROA is a result of assets growing at a faster rate than the average net income. Although there was a temporary recovery in June 2024 where ROA rose to 5.92%, the subsequent period saw a sharper decline. The drop to 4.40% in June 2025 and the eventual slide toward 4.02% in September 2026 suggest that the incremental investment in assets has not yielded proportional increases in profitability.
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