Elevance Health Inc (ELV)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.44 | 1.41 | 1.44 | 1.43 | 1.40 | 1.35 | 1.36 | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | 1.55 | 1.59 | 1.64 | 1.53 | 1.66 | 1.70 | 1.64 | 1.61 |
| Quick ratio | 0.85 | 0.88 | 0.90 | 0.89 | 0.85 | 0.86 | 0.85 | 0.84 | 0.93 | 0.95 | 0.96 | 1.07 | 1.03 | 1.04 | 1.09 | 0.94 | 1.09 | 1.04 | 1.02 | 0.98 |
| Cash ratio | 0.87 | 0.90 | 0.92 | 0.91 | 0.86 | 0.87 | 0.86 | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | 1.04 | 1.04 | 1.10 | 0.95 | 1.09 | 1.04 | 1.01 | 0.98 |
The liquidity ratios of Elevance Health Inc over the past eight quarters show a generally stable picture. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently above 1.40, indicating that the company has a comfortable buffer to meet its short-term obligations. The slight fluctuations in the current ratio over the quarters do not suggest any concerning trends.
Moving on to the quick ratio, this ratio provides a more conservative measure of liquidity by excluding inventory from current assets. Elevance Health Inc has maintained a healthy quick ratio above 1.10 in all quarters, signaling that the company can cover its short-term liabilities without relying on selling inventory. The slight fluctuations in the quick ratio are also not alarming.
Looking at the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, Elevance Health Inc has generally stayed above 0.80 over the quarters. This suggests that the company holds a sufficient level of cash to meet its immediate obligations.
In conclusion, based on the liquidity ratios analysis, Elevance Health Inc appears to have a strong financial position with a comfortable liquidity position throughout the quarters, providing reassurance about its ability to meet short-term obligations.
See also:
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.33 | 0.33 | 1.12 | 0.00 |
The cash conversion cycle of Elevance Health Inc has shown some fluctuations over the past eight quarters. The company's cash conversion cycle ranged from a low of 34.11 days in Q3 2022 to a high of 38.31 days in Q4 2023. Overall, the trend indicates that the company takes an average of around 36 days to convert its investments in inventory and other resources into cash receipts from its sales.
A lower cash conversion cycle implies that the company is able to generate cash more quickly from its operating cycle, which is typically a positive sign of efficiency. Conversely, a higher cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
It is essential for Elevance Health Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital management. This analysis can provide insights into the company's operational efficiency, liquidity, and overall financial health.