Elevance Health Inc (ELV)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.01 | 2.05 | 2.05 | 2.07 | 2.13 |
| Quick ratio | 1.28 | 1.37 | 1.38 | 1.45 | 1.55 |
| Cash ratio | 1.28 | 1.37 | 1.38 | 1.45 | 1.55 |
Elevance Health Inc's liquidity ratios demonstrate a consistent level of stability over the five-year period.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown a slight decline from 2.13 in 2020 to 2.01 in 2024. Despite this decrease, the current ratio remains above 2 throughout the period, indicating that Elevance Health has more than enough current assets to cover its current liabilities.
In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, there is also a gradual decline from 1.55 in 2020 to 1.28 in 2024. Although the quick ratio is lower than the current ratio, it still indicates that Elevance Health can meet its short-term obligations without relying on inventory.
The cash ratio, which reflects the company's ability to cover its current liabilities with cash and cash equivalents, shows a similar trend to the quick ratio with a decline from 1.55 in 2020 to 1.28 in 2024. This ratio suggests that Elevance Health has a strong position in terms of cash reserves to meet its immediate financial obligations.
Overall, Elevance Health Inc's liquidity ratios indicate a sound financial position with ample liquidity to support its short-term operations and contingencies.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Elevance Health Inc has consistently maintained a cash conversion cycle of 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company efficiently manages its cash flow, effectively converting its investments in inventory into cash receipts without any delay. A zero cash conversion cycle suggests that Elevance Health Inc is adept at managing its working capital, optimizing its operations, and maintaining a healthy cash position. This efficiency in cash conversion cycle signifies strong liquidity and effective financial management within the organization.