Elevance Health Inc (ELV)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 171,340,000 | 156,595,000 | 138,639,000 | 121,867,000 | 104,213,000 |
| Total current assets | US$ in thousands | 60,029,000 | 55,617,000 | 51,122,000 | 45,751,000 | 39,033,000 |
| Total current liabilities | US$ in thousands | 41,791,000 | 39,696,000 | 34,885,000 | 29,453,000 | 23,532,000 |
| Working capital turnover | 9.39 | 9.84 | 8.54 | 7.48 | 6.72 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $171,340,000K ÷ ($60,029,000K – $41,791,000K)
= 9.39
The working capital turnover ratio for Elevance Health Inc has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
The trend shows an overall improvement from 6.69 in 2019 to 9.33 in 2023, which suggests that the company has been able to generate more revenue for each unit of working capital over the years. This increase indicates a positive trend in the company's working capital management efficiency.
However, the ratio dipped in 2021 to 8.43 from the previous year's 9.78, which suggests a slight decrease in efficiency in that year. Nevertheless, the ratio rebounded in 2022 and continued to improve in 2023, indicating that the company may have implemented measures to better utilize its working capital.
Overall, the upward trend in the working capital turnover ratio demonstrates that Elevance Health Inc has been effective in leveraging its working capital to drive revenue growth, which is a positive indicator of the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023