Elevance Health Inc (ELV)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.01 | 2.14 | 2.14 | 1.93 | 2.05 | 2.04 | 2.10 | 2.16 | 2.05 | 1.84 | 1.90 | 1.90 | 2.07 | 2.08 | 2.11 | 2.37 | 2.13 | 2.07 | 2.21 | 1.97 |
| Quick ratio | 1.28 | 1.42 | 1.38 | 1.27 | 1.37 | 1.42 | 1.47 | 1.50 | 1.38 | 1.30 | 1.32 | 1.31 | 1.45 | 1.48 | 1.50 | 1.74 | 1.55 | 1.44 | 1.59 | 1.36 |
| Cash ratio | 1.28 | 1.42 | 1.38 | 1.27 | 1.37 | 1.42 | 1.47 | 1.50 | 1.38 | 1.30 | 1.32 | 1.31 | 1.45 | 1.48 | 1.50 | 1.74 | 1.55 | 1.44 | 1.59 | 1.36 |
The liquidity ratios of Elevance Health Inc show a strong financial position in terms of its ability to meet its short-term obligations.
Firstly, looking at the current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, we see a consistent trend of the ratio being above 1. This indicates that the company has more than enough current assets to cover its current liabilities. The current ratio has generally been above 2 over the years, suggesting a healthy liquidity position.
Next, examining the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see that the company also maintains a strong ability to cover its short-term obligations. The quick ratio has generally been above 1, indicating the company can meet its short-term liabilities without relying on selling inventory.
Lastly, reviewing the cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, we notice that the company also maintains a solid ability to cover its current liabilities, with the ratio consistently above 1.
Overall, based on the liquidity ratios, Elevance Health Inc appears to be well-equipped to handle its short-term financial obligations with ample current assets and cash reserves. It indicates a good financial health and ability to withstand unexpected financial challenges.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the data provided, Elevance Health Inc's cash conversion cycle has consistently remained at 0.00 days from March 2020 to December 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
A cash conversion cycle of 0.00 days indicates that Elevance Health Inc is efficiently managing its working capital. This may imply that the company is able to quickly convert its inventory into sales and collect cash from customers without delaying payments to suppliers.
Overall, a stable and low cash conversion cycle suggests that Elevance Health Inc has an effective working capital management system in place, leading to improved liquidity and potentially better financial performance.