Elevance Health Inc. (NYSE:ELV)

Receivables turnover

The receivables turnover ratio demonstrates fluctuation over the periods starting in March 2020, with initial data missing until March 2021. From March 2021, the ratio generally oscillates between approximately 15.98 and 20.66, with occasional decreases observed in mid-2023 and early 2025. The highest turnover ratio is observed in March 2022 at 20.66, indicating a stronger efficiency in collecting receivables at that time, while a notable decline occurs toward the end of the series in early 2025, dropping to around 14.42. This suggests some variability in the efficiency of credit collection over time, with no clear upward or downward trend but periodic fluctuations.

Payables turnover

The payables turnover ratio is relatively stable over time, ranging from about 7.3 to 8.17. The data from March 2021 onward show modest increases in the ratio, particularly from late 2023 through mid-2025 where values approach or slightly exceed 8.0, indicating a slight improvement in the frequency of payable settlements. The consistency of values around 7.3 to 7.6 through most periods suggests a relatively steady approach to paying suppliers, with some incremental enhancements in payment speed more recently.

Working capital turnover

Working capital turnover shows a generally increasing trend from mid-2020 through early 2023, starting around 5.38 and rising to a peak of 9.11 in late 2022. This improvement indicates enhanced efficiency in generating sales from working capital during that period. However, following this peak, the values experience some volatility and partial decline, dropping to around 6.87 in late 2024 before somewhat recovering to near 8.11 by mid-2025. This pattern suggests fluctuations in the utilization of working capital with intermittent periods of higher efficiency.

Average receivable collection period (days)

The average receivable collection period remains mostly within a range of about 18 to 23 days over the entire time span. There are slight increases around mid-2023 and early 2025 where the collection days approach or reach 25, reflecting a marginal slowing in receivables collection during these intervals. Conversely, periods such as early 2022 and mid-2024 show shorter collection periods near 18 days, indicating occasional improvements in collection speed. Overall, the period remains relatively stable without any long-term trend of increase or decrease.

Average payables payment period (days)

The average payables payment period is fairly steady across the periods analyzed, mostly ranging between 45 and 50 days. Earlier periods reflect a slight increase with values close to 50 days, while from late 2023 onward there is a modest trend toward shorter payment periods, hovering consistently around 45 to 48 days. This suggests a slight tightening but overall consistent approach to timing payments to suppliers without significant volatility or deviation from the established payment cycle.

Premiums

The premiums exhibit an overall upward trend across the periods analyzed, starting at 25,517 million US dollars in March 2020 and reaching 41,271 million US dollars by June 2025. There are fluctuations within quarters, with some marginal declines noted in the third quarter of 2023 (from 36,589 to 35,259 million) and the fourth quarter of 2023 (35,259 to 35,138 million), but the general movement remains positive. The growth is relatively steady, indicating sustained expansion in the premium base over the five-year span.

Premium Receivables

Premium receivables show more variability when compared to premiums. Initial values were 5,786 million US dollars in March 2020, with a notable increase to 10,465 million by June 2025. The data reveals cycles of rising and falling balances, with peaks observed in the first quarter of 2022 (7,349 million), first quarter of 2023 (8,246 million), and a substantial rise in 2025 Q2. There appear to be periods of cleanup or collection efficiency, as seen in cyclical decreases following peaks. However, the general progression is upwards, implying increasing amounts yet to be collected as the company expands its premium volume.

Receivables Turnover Ratio

The receivables turnover ratio, reported starting from the second quarter of 2020, fluctuates within a range of approximately 14.42 to 20.66 times. Higher turnover ratios generally indicate better efficiency in collecting receivables. The highest efficiency occurs in the early quarters of 2021 with values above 18 times. However, there is a noticeable decline starting from late 2024 to mid-2025, reaching as low as 14.42, suggesting reduced collection effectiveness or longer collection periods. The trend indicates periods of both improved and diminished receivable management amidst growth.

Summary

Overall, the data reflects a company experiencing consistent long-term growth in both premiums underwritten and premium receivables outstanding. Despite this growth, there is evidence of fluctuating efficiency in premium receivable collections, as seen in the turnover ratio variations. The increase in receivables alongside premiums suggests that while sales expand, the company may face challenges in maintaining its collection pace uniformly over time. The later periods show a decrease in turnover ratio, which may warrant attention to receivables management strategies to sustain liquidity and working capital health.

The analyzed financial data reveals several notable trends across the reported periods. The benefit expense demonstrates a consistent upward trajectory with some fluctuations but generally increases from $21,489 million in March 2020 to $36,706 million in June 2025. The data shows steady growth in benefit expenses, with occasional minor declines, such as in September 2023, indicating potential seasonal or operational factors influencing these costs.

Medical claims payable exhibit a similar increasing pattern over the same interval, rising from $9,902 million in March 2020 to $17,155 million in June 2025. The growth is relatively steady with some periods of stabilization or slight decreases, for example, in December 2024 where medical claims payable decline from the previous quarter before rising again. This trend suggests incremental growth in obligations related to medical claims, aligned with the increase in benefit expenses.

Payables turnover ratios are reported from March 2021 onwards and maintain a relatively narrow range between approximately 7.3 and 8.17. This ratio experiences mild fluctuations but shows a modest upward trend towards 2024 and early 2025, indicating improving efficiency in managing payables over time. Higher turnover ratios in later periods may reflect quicker settlement of liabilities or better working capital management.

Benefit Expense

Consistently increasing across the full timeframe, with minor fluctuations suggesting operational variability.

Medical Claims Payable

Follows an upward trend paralleling benefit expenses with some quarters showing stabilization or slight decreases.

Payables Turnover Ratio

Maintains a stable range with a gradual increase, indicating enhanced payable management and operational efficiency.

Working Capital

The working capital showed notable fluctuations over the observed periods. Initial values exhibited an increase from 14,217 million USD in the first quarter of 2020, peaking at 19,746 million USD in the first quarter of 2021. After this peak, a decline followed until the first quarter of 2022, when working capital decreased to around 14,164 million USD. Subsequently, the measure experienced a gradual upward trend, with occasional dips, reaching a level of 19,490 million USD by mid-2025. This overall pattern suggests a dynamic management of short-term assets and liabilities, characterized by periods of both aggressive growth and consolidation.

Premiums

Premium revenues demonstrated a consistent upward trajectory throughout the examined timeframe. Starting from approximately 25,517 million USD in the first quarter of 2020, premiums increased steadily each quarter, reaching 41,271 million USD by the second quarter of 2025. Minor fluctuations in growth rates are observable, but no significant declines occurred. This steady increase indicates sustained expansion in revenue generation from premium business over the five-year period.

Working Capital Turnover

The working capital turnover ratio, available from the fourth quarter of 2020 onward, shows an overall increasing trend with some oscillations. Beginning at 6.39, the ratio climbed to a peak of 9.11 in the fourth quarter of 2022. Following this peak, the ratio exhibited moderate volatility, fluctuating between approximately 6.87 and 8.59 in subsequent quarters, stabilizing near 8 by mid-2025. The overall increasing trend suggests improved efficiency in utilizing working capital to generate premiums, though occasional short-term changes may reflect operational adjustments or market conditions.

General Insights

The data indicate that while the company’s working capital levels experienced variability, its ability to generate premiums improved consistently. The increase in working capital turnover reinforces this observation, suggesting enhanced operational efficiency over time. The combination of steady premium growth and gradual efficiency gains may point to an effective balance between resource allocation and revenue expansion efforts during the analyzed period.

Receivables Turnover

The receivables turnover ratio displays fluctuations over the observed time frame, beginning from a value of 19.72 and experiencing variations in subsequent quarters. Notably, the ratio peaks at 20.66 during the first quarter of 2022, followed by a decline to a low of 14.42 by the first quarter of 2025. This declining trend in turnover suggests a gradual decrease in the efficiency of collecting receivables over time. The intermediate quarters reflect moderate volatility, with occasional rebounds, but the overall pattern points toward deceleration in receivables management efficiency as it approaches the later periods.

Average Receivable Collection Period

The average receivable collection period exhibits an inverse movement relative to the receivables turnover, with days increasing from 19 at the start to 25 by the first quarter of 2025. Initial stability is observed with values mostly around 19 to 22 days, but the latter quarters show an upward trend toward longer collection periods, indicating that on average, receivables are collected over more extended periods as time progresses. The increase to 25 days toward the end of the period corresponds with the decline in the turnover ratio, highlighting a potential slowdown in collection processes.

Overall Analysis

The combination of a decreasing receivables turnover and an increasing average collection period suggests a deterioration in the efficiency of receivables management over the observed quarters. This trend could imply challenges in collecting payments promptly or changes in credit policies or customer payment behaviors. Monitoring these trends is essential for assessing liquidity and operational effectiveness related to accounts receivable.

Payables Turnover Ratio

The payables turnover ratio data commences from the quarter ending March 31, 2021. Initially, the ratio was 7.75, followed by a slight decline to 7.31 by June 30, 2021. It remained relatively stable around 7.3 to 7.31 through December 31, 2021. There was a gradual increase observed throughout 2022 and early 2023, fluctuating narrowly between 7.28 and 7.61.

From mid-2023 onward, the ratio generally trended upward, reaching a peak of 8.17 on June 30, 2024. Following this peak, a slight decline occurred toward the end of the available data, with the ratio settling at 8.07 by June 30, 2025. Overall, the trend indicates a modest increase in the payables turnover ratio over the period, suggesting a slight improvement in the company's efficiency in settling its payables.

Average Payables Payment Period (Days)

The average payables payment period started at 47 days in March 2021, increased slightly to 50 days through the middle and latter part of 2021, and remained steady around this level into 2022. Thereafter, the payment period exhibited a gradual reduction trend, moving from approximately 49-50 days down to 45-46 days in 2024 and 2025.

This reduction implies a shortening of the time taken to pay suppliers, consistent with the observed increase in the payables turnover ratio. The decrease in payment days from around 50 to 45 reflects an enhanced liquidity position or possibly changed payment terms, resulting in more prompt settlement of payables over time.

Overall Insights

The data indicates an improvement in the management of payables, with a rising payables turnover ratio complemented by a declining average payables payment period. The company appears to be managing its supplier payments more efficiently, paying off obligations faster, which may be indicative of stronger cash flow or more favorable supplier relationships.

There are no abrupt fluctuations or irregular patterns, suggesting stability in payable management processes. The gradual trends reflect a consistent operational approach towards accounts payable during the covered quarters.