Analysis of Reportable Segments
Elevance Health Inc. operates in 4 segments: Health Benefits; CarelonRx; Carelon Services; and Corporate & Other.
Segment Profit Margin
Elevance Health Inc., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Health Benefits | 4.15% | 4.64% | 4.35% | 4.81% | 4.73% |
| CarelonRx | 6.04% | 5.84% | 6.55% | 6.62% | 6.21% |
| Carelon Services | 3.99% | 4.81% | 4.16% | 1.85% | -2.08% |
| Corporate & Other | -411.00% | -217.95% | -35.59% | -170.53% | — |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Health Benefits Segment Profit Margin
- The Health Benefits segment displays a fluctuating profit margin trend over the five-year period. Starting at 4.73% in 2020, the margin increased slightly to 4.81% in 2021, followed by a decline to 4.35% in 2022. Subsequently, the margin rose again to 4.64% in 2023 before declining notably to 4.15% in 2024. Overall, the segment presents moderate volatility but remains within a narrow range, with a general tendency toward a slight decrease in profitability in the most recent year.
- CarelonRx Segment Profit Margin
- The profit margin for CarelonRx begins at 6.21% in 2020 and increases to a peak of 6.62% in 2021. After this peak, there is a small decrease to 6.55% in 2022 and then a more pronounced declining trend to 5.84% in 2023. The margin experiences a slight recovery to 6.04% in 2024. This pattern suggests overall relatively strong profitability with some fluctuations and a slight diminishing trend in the middle years, followed by a modest rebound.
- Carelon Services Segment Profit Margin
- The Carelon Services segment exhibits a significant improvement from a negative margin of -2.08% in 2020 to a positive margin of 1.85% in 2021. This upward trajectory continues with the margin reaching 4.16% in 2022 and peaking at 4.81% in 2023. However, the margin declines moderately to 3.99% in 2024. The data signals a strong recovery and growth phase for the segment, stabilizing at a positive and improving profitability margin over the period, despite a minor pullback in the final year.
- Corporate & Other Segment Profit Margin
- This segment shows substantial and increasing negative profit margins throughout the entire period. Comparisons are limited by the absence of data in 2020, but from 2021 onwards, the margin is deeply negative, starting at -170.53%, improving somewhat to -35.59% in 2022, then sharply declining again to -217.95% in 2023 and worsening further to -411% in 2024. The data indicates extreme losses with considerable volatility and a deteriorating trend beginning in 2023, suggesting significant financial challenges or exceptional expenses within this segment during recent years.
- Summary of Observed Trends
- Overall, the data reveals that while the Health Benefits and CarelonRx segments maintain relatively stable and positive profit margins with some fluctuations, Carelon Services has demonstrated a marked recovery from negative to positive profitability. Conversely, the Corporate & Other segment consistently incurs steep losses with worsening negative margins in the most recent years. These patterns imply that core business segments are generally profitable with moderate margin variability, whereas non-core or corporate activities contribute significant detriments to overall profitability.
Segment Profit Margin: Health Benefits
Elevance Health Inc.; Health Benefits; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | 6,243) | 6,888) | 6,022) | 5,850) | 5,125) |
| Operating revenue | 150,275) | 148,571) | 138,484) | 121,728) | 108,271) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 4.15% | 4.64% | 4.35% | 4.81% | 4.73% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × 6,243 ÷ 150,275 = 4.15%
The segment data over the observed five-year period shows distinct trends in operating revenue, operating gain (loss), and segment profit margin for the Health Benefits segment.
- Operating Revenue
- The operating revenue steadily increased each year, beginning at $108,271 million in 2020 and rising to $150,275 million by 2024. This reflects a consistent upward trend in revenue generation within the segment, demonstrating growth in business activities or market demand over time.
- Operating Gain (Loss)
- Operating gain also rose from 2020 to 2023, moving from $5,125 million up to a peak of $6,888 million. However, in 2024, there was a noticeable decline to $6,243 million. This suggests that while profitability increased markedly over the first four years, the latest period experienced a contraction in gains despite revenue growth continuing.
- Segment Profit Margin
- The segment profit margin exhibited some volatility over the years. It started at 4.73% in 2020, slightly improving to 4.81% in 2021, then decreased sharply to 4.35% in 2022. It rebounded to 4.64% in 2023 but dropped again to 4.15% in 2024. This pattern of fluctuation indicates varying cost management effectiveness or changes in operational efficiency affecting profitability relative to revenue.
In summary, the segment shows consistent revenue growth but experiences fluctuations in profitability, particularly evident in a recent decline in both operating gain and profit margin in 2024. These dynamics suggest challenges in maintaining operating efficiency or increased costs that may be impacting the overall profitability despite continued expansion in revenue.
Segment Profit Margin: CarelonRx
Elevance Health Inc.; CarelonRx; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | 2,172) | 1,975) | 1,868) | 1,684) | 1,361) |
| Operating revenue | 35,961) | 33,835) | 28,526) | 25,431) | 21,911) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.04% | 5.84% | 6.55% | 6.62% | 6.21% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × 2,172 ÷ 35,961 = 6.04%
- Operating Revenue
- The operating revenue exhibited a consistent upward trend throughout the observed period. Starting at $21,911 million in 2020, it increased steadily to reach $35,961 million by 2024. This reflects a significant growth of approximately 64% over five years, indicating expanding sales or service volume in the segment.
- Operating Gain (Loss)
- The operating gain also showed a positive trajectory over the same period. Beginning at $1,361 million in 2020, it rose progressively to $2,172 million in 2024. This steady increase suggests effective cost management or improved operational efficiency alongside revenue growth, resulting in higher absolute operating profits.
- Segment Profit Margin
- The segment profit margin experienced minor fluctuations during the timeframe. It improved from 6.21% in 2020 to a peak of 6.62% in 2021, then slightly declined to 6.55% in 2022. A more noticeable decrease occurred in 2023, dropping to 5.84%, followed by a partial recovery to 6.04% in 2024. Despite these variations, the margin remained relatively stable overall, indicating that profitability relative to revenue was generally maintained amid growth.
- Summary
- Overall, the data indicates strong and sustained growth in both operating revenue and operating gain over the five-year period. While the segment profit margin showed some volatility, it remained within a narrow range around 6%, suggesting that the segment managed to preserve its profitability levels despite expanding scale. The slight dip in margin around 2023 warrants attention but was followed by a rebound in 2024, signaling potential adjustments or improvements in operational performance.
Segment Profit Margin: Carelon Services
Elevance Health Inc.; Carelon Services; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | 717) | 680) | 535) | 187) | (126) |
| Operating revenue | 17,961) | 14,147) | 12,860) | 10,130) | 6,057) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 3.99% | 4.81% | 4.16% | 1.85% | -2.08% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × 717 ÷ 17,961 = 3.99%
- Operating Gain (Loss)
- The operating gain demonstrated a significant positive trend over the analyzed periods. Starting from a loss of $126 million in 2020, it improved to a gain of $187 million in 2021. This upward progression continued with values reaching $535 million in 2022, $680 million in 2023, and culminating at $717 million in 2024, which indicates strong operational performance and improved profitability within the segment.
- Operating Revenue
- Operating revenue showed consistent and substantial growth throughout the period. Beginning at $6,057 million in 2020, it increased by approximately 67% in 2021 to $10,130 million. The upward trajectory persisted with revenues of $12,860 million in 2022, $14,147 million in 2023, and accelerated growth to $17,961 million in 2024. This reflects expanding business activity and possibly increased market share or pricing power in the segment.
- Segment Profit Margin
- Profit margin evolved from a negative -2.08% in 2020 to a positive margin of 1.85% in 2021, indicating a turnaround from operating losses to profitability. The margin continued to improve, peaking at 4.81% in 2023. However, there was a slight decline to 3.99% in 2024, suggesting some pressure on profitability despite revenue growth. This could be due to increased costs or competitive factors affecting the segment.
- Overall Analysis
- The segment exhibits strong operational gains and steady revenue growth, demonstrating effective management and market expansion. While the profit margin generally improved and turned positive after 2020, the slight dip in 2024 warrants monitoring to ensure sustainable profitability. The data suggest that despite challenges, the segment is on a growth trajectory with increasing contributions to overall financial performance.
Segment Profit Margin: Corporate & Other
Elevance Health Inc.; Corporate & Other; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating gain (loss) | (1,270) | (1,044) | (142) | (162) | —) |
| Operating revenue | 309) | 479) | 399) | 95) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -411.00% | -217.95% | -35.59% | -170.53% | — |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating gain (loss) ÷ Operating revenue
= 100 × -1,270 ÷ 309 = -411.00%
- Operating Gain (Loss)
- The operating loss initially reported in 2021 at -$162 million shows a slight improvement in 2022, decreasing to -$142 million. However, there is a significant worsening in the subsequent years, with losses sharply increasing to -$1,044 million in 2023 and further declining to -$1,270 million in 2024. This trend indicates a deterioration in operating performance over the most recent two years.
- Operating Revenue
- Operating revenue demonstrates consistent growth from 2021 through 2023, increasing from $95 million to $399 million and then to $479 million. However, in 2024, there is a notable decline to $309 million. The initial growth suggests expansion or increased activity in the segment, but the drop in the final year may signify emerging challenges or market contraction.
- Segment Profit Margin
- The segment profit margin is deeply negative throughout the period, reflecting sustained losses relative to revenue. The margin improves from -170.53% in 2021 to -35.59% in 2022, indicating better control or improved operational efficiency during that period. Nevertheless, this positive change reverses dramatically in the following years, deteriorating to -217.95% in 2023 and further to -411% in 2024. The negative margins intensify disproportionately to operating revenue changes, highlighting severe profitability issues and possibly escalating costs or other adverse factors impacting this segment.
- Summary
- Overall, the segment shows an unstable financial performance with initial modest improvement in 2022 being overshadowed by significant losses and margin deterioration in 2023 and 2024. Despite revenues growing initially, the sharp decline in 2024 combined with escalating losses and worsening margins signals increasing operational challenges. This pattern emphasizes a need for strategic review and corrective actions to address underlying issues affecting profitability and sustainability in this segment.
Operating revenue
Elevance Health Inc., operating revenue by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Health Benefits | 150,275) | 148,571) | 138,484) | 121,728) | 108,271) |
| CarelonRx | 35,961) | 33,835) | 28,526) | 25,431) | 21,911) |
| Carelon Services | 17,961) | 14,147) | 12,860) | 10,130) | 6,057) |
| Carelon | 53,922) | 47,982) | 41,386) | 35,561) | 27,968) |
| Corporate & Other | 309) | 479) | 399) | 95) | —) |
| Eliminations | (29,302) | (26,823) | (24,609) | (20,441) | (15,431) |
| Total | 175,204) | 170,209) | 155,660) | 136,943) | 120,808) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Health Benefits
- The Health Benefits segment showed a consistent upward trend across the five-year period. From US$108,271 million in 2020, the revenue increased steadily each year, reaching US$150,275 million by 2024. This reflects substantial growth with the largest absolute increase occurring between 2021 and 2022.
- CarelonRx
- CarelonRx exhibited continuous growth over the period analyzed. Starting at US$21,911 million in 2020, the segment increased its revenue every year, culminating in US$35,961 million in 2024. The year-over-year growth indicates a healthy expansion, particularly notable between 2022 and 2023.
- Carelon Services
- Carelon Services displayed strong growth throughout the five years. The revenue rose from US$6,057 million in 2020 to US$17,961 million in 2024. The most significant growth rate was seen between 2023 and 2024, suggesting accelerated development in this segment in the most recent period.
- Carelon
- The Carelon segment, which aggregates CarelonRx and Carelon Services, reflected the combined upward trends of its components. It increased from US$27,968 million in 2020 to US$53,922 million by 2024. Growth was steady each year, with accelerating increases in later years.
- Corporate & Other
- The Corporate & Other segment had a relatively minor contribution to total revenues, with values starting only from 2021. This segment registered US$95 million in 2021, rising moderately to US$479 million in 2023 before declining to US$309 million in 2024, indicating some volatility in this category.
- Eliminations
- The Eliminations line, representing internal adjustments, consistently showed increasing negative values, growing from -US$15,431 million in 2020 to -US$29,302 million in 2024. The increasing magnitude suggests greater inter-segment revenue eliminations over time, which is typical as related segment revenues expand.
- Total
- Total operating revenue rose steadily from US$120,808 million in 2020 to US$175,204 million in 2024. The overall growth reflects the combined increases across segments, despite the increasing eliminations. The annual increments suggest a stable expansion trajectory for the company’s reportable segments.
Operating gain (loss)
Elevance Health Inc., operating gain (loss) by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Health Benefits | 6,243) | 6,888) | 6,022) | 5,850) | 5,125) |
| CarelonRx | 2,172) | 1,975) | 1,868) | 1,684) | 1,361) |
| Carelon Services | 717) | 680) | 535) | 187) | (126) |
| Carelon | 2,889) | 2,655) | 2,403) | 1,871) | 1,235) |
| Corporate & Other | (1,270) | (1,044) | (142) | (162) | —) |
| Total | 7,862) | 8,499) | 8,283) | 7,559) | 6,360) |
Based on: 10-K (reporting date: 2024-12-31), 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).
The data reveals several trends in the operating gains and losses across the various segments over the five-year period from 2020 to 2024.
- Health Benefits
- The Health Benefits segment exhibits a generally positive trend from 2020 to 2023, increasing from 5,125 million USD to a peak of 6,888 million USD. However, in 2024, there is a notable decrease to 6,243 million USD, representing a decline after several years of growth.
- CarelonRx
- This segment shows steady growth throughout the entire period, rising consistently from 1,361 million USD in 2020 to 2,172 million USD in 2024. The increases each year suggest expanding operations or improved profitability in this segment.
- Carelon Services
- Carelon Services experienced substantial improvement over the years. The segment moved from a loss of 126 million USD in 2020 to positive gains starting in 2021. The gains increased significantly each year, reaching 717 million USD by 2024, indicating successful turnaround and growth.
- Carelon
- The Carelon aggregate segment, combining CarelonRx and Carelon Services, also shows a strong upward trend. It increased from 1,235 million USD in 2020 to 2,889 million USD in 2024, reflecting the overall growth of the combined business lines and improving profitability.
- Corporate & Other
- This segment consistently records losses throughout the period, with losses deepening over time. The losses increased sharply in 2023 and 2024, reaching -1,044 million USD and -1,270 million USD respectively, suggesting rising costs or expenses not allocated to operating segments.
- Total
- The total operating gain mirrors the growth seen in individual segments, rising from 6,360 million USD in 2020 to a high of 8,499 million USD in 2023. However, there is a decline in 2024 to 7,862 million USD, driven likely by the reduction in Health Benefits and widening losses in Corporate & Other, despite continued growth in the Carelon segments.
In summary, most segments demonstrate growth and improvement, particularly CarelonRx and Carelon Services, with the latter turning from losses to substantial gains. Health Benefits grows steadily but exhibits a downturn in the most recent period. The Corporate & Other segment is a source of increasing losses, which negatively impacts total operating gains in the last two years. Overall, the data indicate solid underlying operating performance in core business segments, tempered by challenges in corporate overhead or other unallocated costs.