Elevance Health Inc. (NYSE:ELV)

Receivables Turnover

The receivables turnover ratio exhibited fluctuations over the analyzed periods. Starting at 17.39 and climbing to a peak of 20.66 by the end of 2021, it then showed a pattern of decline and partial recovery. From early 2022 onwards, the ratio moved mostly between approximately 15.98 and 19.84, with a notable decline towards the latter quarters reaching as low as 14.42 before a slight uptick.

Payables Turnover

The payables turnover ratio remained relatively stable, with values oscillating mildly between 7.28 and 8.38 during the entire timeline. A gradual but discernible upward trend is observable from early 2023 through to late 2025, indicating a slight improvement in the rate at which payables are being settled.

Working Capital Turnover

Working capital turnover showed an initial upward trend from 5.38 to a peak of 9.11 between March 2021 and September 2022. Following this peak, the ratio generally declined, with periodic minor recoveries, falling closer to the 7.0 range by late 2025. This pattern suggests fluctuating efficiency in using working capital to generate revenue, with some erosion in later years.

Average Receivable Collection Period

The average number of days to collect receivables mostly hovered around 18 to 23 days, reflecting moderate consistency. Early periods showed a collection period of 21 days, reducing to 18–20 days intermittently but increasing again toward the later periods, peaking at 25 days on two occasions in 2025. This indicates some deterioration in collection efficiency in recent quarters.

Average Payables Payment Period

The average payables payment period remained relatively steady between 44 and 50 days throughout the timeline. A slight downward trend can be inferred, particularly after mid-2023, where the period moved from approximately 48-50 days down to the mid-40s, implying a modest acceleration in settling payables.

Premiums

The quarterly premiums exhibit a generally increasing trend over the observed period from March 31, 2021, to September 30, 2025. Starting at approximately 27,676 million USD, the premiums gradually increased to reach a peak of about 41,791 million USD by the third quarter of 2025. There are some mild fluctuations with occasional slight declines, such as between June and September 2023 and again around the end of 2024, but the overall trajectory is upward, indicating consistent growth in premium revenues.

Premium Receivables, Net

Premium receivables fluctuate more noticeably compared to premiums. Initial values rise from 6,111 million USD, then fluctuate with intermittent increases and decreases throughout the period. Notable peaks occur near the first and third quarters of 2023 and the third quarter of 2025, with values surpassing 10,000 million USD in some instances. This volatility suggests variations in the collection period or outstanding receivables balance, reflecting possible changes in credit terms, billing cycles, or customer payment behaviors over time.

Receivables Turnover Ratio

The receivables turnover ratio demonstrates variability over time, ranging from a high of 20.66 during the fourth quarter of 2021 to lower values around 14.42 in the third quarter of 2025. Higher turnover ratios in the early and mid-period suggest efficient collection of receivables, while declining ratios toward the later periods indicate a slower turnover of premium receivables. This downward movement may reflect extended collection periods or challenges in receivables management as premium receivables rise.

Summary of Observations

The data reveals an expanding premium base with quarterly revenues nearly doubling over the timeframe. Despite this growth, the management of premium receivables has become more complex, as seen from the fluctuating receivables and a generally declining turnover ratio over the long term. This pattern points to potential pressure on cash flows and the need for ongoing focus on collections efficiency. The correlation between rising premiums and increased receivables emphasizes the importance of monitoring credit risk and receivables aging closely to sustain financial performance.

Benefit Expense

The benefit expense has shown a consistent upward trend over the observed periods. Starting from approximately 23,699 million USD in March 2021, it increased steadily and reached around 38,140 million USD by September 2025. There are minor fluctuations quarter-over-quarter but the overall trajectory is clearly increasing, indicating rising costs or usage of benefits over time. Notably, there was a more pronounced increase in late 2024 and continuing into 2025.

Medical Claims Payable

This metric has evolved with a more moderate but steady increase compared to benefit expense. From about 12,347 million USD in March 2021, it rose gradually to a peak near 17,155 million USD by June 2025 before slightly stabilizing around 17,148 million USD in September 2025. The increase is consistent, suggesting a growing but controlled level of medical claims liabilities.

Payables Turnover Ratio

The payables turnover ratio, which indicates the frequency of payment of payables, generally trended upward with some volatility. It started near 7.31 at the beginning of the period in March 2021 and increased to approximately 8.38 by September 2025. Notable peaks occurred around mid-2024 and early 2025, reflecting potentially improved efficiency or faster payment cycles in managing payables. However, some quarters show slight declines, indicating minor fluctuations in payment speed.

Summary of Insights

The data reveals a pattern of increasing benefit expenses, reflecting rising costs or utilization of health benefits. Medical claims payable also rise but at a steadier pace, which may suggest effective management of claim liabilities relative to benefit expenses. Meanwhile, the increasing payables turnover ratio suggests enhanced operational efficiency in processing and settling payables over the period. The combined trends highlight a balancing act between rising costs and the company's ability to manage cash flow related to liabilities.

The financial data exhibits distinct trends in working capital, premiums, and working capital turnover ratios over the observed periods.

Working Capital

Working capital demonstrates a fluctuating pattern with periods of both decline and growth. Initially, working capital decreased from approximately 19,746 million USD in early 2021 to around 14,164 million USD by Q1 2022. This decline suggests tightening liquidity or increased current liabilities relative to current assets during this period. Subsequently, from mid-2022 through early 2023, working capital experienced an upward recovery, reaching levels above 18,000 million USD. The following quarters reveal volatility, with working capital oscillating between roughly 16,000 and 20,000 million USD. Notably, by mid to late 2025, working capital appears to increase significantly, reaching approximately 22,900 million USD, indicating improved liquidity or working capital management in the most recent periods.

Premiums

Premium revenue steadily increased over the entire timeframe, reflecting growth in the company's core operations. From around 27,676 million USD at the beginning of 2021 to approximately 41,791 million USD by Q3 2025, premiums grew consistently with minor fluctuations. This upward trend points to expanding business volume or higher pricing power. There are some quarters, such as mid to late 2023, where premiums slightly dipped but the overall trajectory remained positive. The premium growth appears robust in comparison to working capital changes, suggesting efficient asset utilization to support revenue expansion.

Working Capital Turnover Ratio

The working capital turnover ratio reveals increasing operational efficiency over much of the period, rising from 5.38 in early 2021 to peak values above 9 in late 2022. This ratio improvement indicates that the company was generating more premiums per unit of working capital employed, reflecting enhanced asset and liability management or improved business activity. However, this ratio declined after its peak, moving down to values around 6.87 to 7.00 in the later periods of 2024 through 2025, denoting a relative reduction in efficiency or a deliberate strategy to increase working capital reserves amidst growing premiums.

In summary, the data highlights overall premium growth accompanied by variable working capital and efficiency levels. The initial contraction in working capital with rising turnover suggests a focus on optimizing capital usage, though more recent trends imply a stabilization or expansion of working capital possibly to support further business growth or mitigate risks. The interplay between these metrics indicates active balance sheet management aligned with the company’s operational scale-up.

Receivables Turnover Ratio

The receivables turnover ratio shows a fluctuating but generally declining trend over the periods analyzed. Initially, the ratio increased from 17.39 to a peak of 20.66 by the end of 2021, indicating an improvement in the company's efficiency in collecting receivables. However, starting in early 2022, the ratio declined and experienced volatility, dropping to lows around 14.42 by mid-2025. This suggests a decrease in collection efficiency over time, with occasional short-term recoveries.

Average Receivable Collection Period

The average receivable collection period inversely correlates with the turnover ratio, fluctuating between 18 and 25 days in the examined period. In the early quarters, the collection period shortened to approximately 18 days, reflecting faster receivable inflows. Nonetheless, from 2022 onward, the trend shows an increase in the collection period, reaching peaks of 25 days in mid to late 2025. This indicates the company is taking longer to collect its receivables, consistent with the declining turnover ratio.

Overall Trend and Interpretation

The combined data reveal that the company's receivables management efficiency improved towards the end of 2021 but has generally deteriorated since. The extension of the average collection period alongside the decreasing turnover ratio suggests potential challenges in credit control or changes in customer payment behavior. These trends warrant attention as they may impact the company's liquidity and working capital management.

Payables Turnover

The payables turnover ratio displays a generally upward trend over the observed period. Starting at about 7.31 in the first quarter of 2021, the ratio remains relatively stable through 2021, fluctuating slightly around the 7.3 to 7.6 range. From early 2023 onward, the ratio shows a more pronounced increase, reaching 8.38 by the third quarter of 2025. This indicates a gradual acceleration in the frequency with which the company is paying its suppliers.

Average Payables Payment Period

The average payables payment period, expressed in days, inversely mirrors the trend observed for payables turnover. It begins at 50 days in the early quarters of 2021, drops slightly to around 48–49 days by the end of 2021 and continues a moderate decline throughout the entire period. By the third quarter of 2025, the payment period is at its shortest, approximately 44 days. This shortening time frame implies that the company is settling its payables more quickly over time.

Overall Insights

The data reveals a consistent improvement in the company's payables management efficiency. The increasing payables turnover ratio coupled with a decreasing average payment period indicates better liquidity management and potentially stronger relationships with suppliers via quicker payment cycles. No significant volatility or disruptions are observed; the changes are gradual and suggest a strategic emphasis on optimizing cash outflows and managing working capital more effectively over the five-year period.