Elevance Health Inc (ELV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -68.23% | -69.43% | -68.43% | -67.54% | -72.68% |
| Operating profit margin | 4.96% | 5.29% | 5.40% | 5.22% | 5.76% |
| Pretax margin | 4.50% | 4.97% | 5.72% | 5.12% | 5.74% |
| Net profit margin | 3.49% | 3.76% | 4.40% | 3.75% | 4.61% |
Elevance Health Inc's profitability ratios indicate the company's ability to generate profits relative to its revenue over the past five years.
1. Gross Profit Margin: This ratio measures the percentage of revenue that remains after subtracting the cost of goods sold. Elevance's gross profit margin has shown a declining trend from 98.07% in 2019 to 89.84% in 2023. This suggests that the company may be facing increasing costs of goods sold relative to its revenue.
2. Operating Profit Margin: The operating profit margin indicates the company's ability to generate profits from its core business operations. Elevance's operating profit margin has also shown a decreasing trend over the years, from 5.44% in 2019 to 4.07% in 2023. This decline may indicate challenges in controlling operating expenses.
3. Pre-tax Margin: The pretax margin represents the percentage of each dollar of revenue that results in pre-tax profits. Elevance Health Inc's pretax margin has fluctuated over the years, with a peak in 2021 at 5.79% and a slight decrease to 4.53% in 2023. This suggests that the company's profitability before taxes has been somewhat unstable.
4. Net Profit Margin: The net profit margin reflects the company's bottom line profitability after all expenses have been accounted for. Elevance's net profit margin has also experienced variability, with a decline from 4.66% in 2019 to 3.52% in 2023. This indicates that the company may be facing challenges in maintaining its profitability levels.
Overall, Elevance Health Inc's profitability ratios show a mixed performance over the past five years, with some ratios declining or fluctuating. This suggests potential areas of concern in managing costs and improving overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.80% | 8.06% | 7.68% | 7.34% | 7.75% |
| Return on assets (ROA) | 5.50% | 5.74% | 6.26% | 5.28% | 6.21% |
| Return on total capital | 13.97% | 14.72% | 15.25% | 13.37% | 13.59% |
| Return on equity (ROE) | 15.23% | 16.26% | 16.91% | 13.77% | 15.15% |
Based on the provided data, Elevance Health Inc's profitability ratios demonstrate consistent performance over the last five years.
- Operating return on assets (Operating ROA) has ranged from 6.35% to 7.25% during this period, indicating the company's ability to generate operating profit from its assets, with the highest performance observed in 2021.
- Return on assets (ROA) has varied from 5.28% to 6.26%, reflecting the company's effectiveness in generating profit from its total assets, with the highest return recorded in 2021.
- Return on total capital has ranged from 12.99% to 14.80%, showing how efficiently the company utilizes its total capital to generate profits, with the peak performance observed in 2021.
- Return on equity (ROE) has fluctuated between 13.77% and 16.93%, illustrating the company's ability to generate profit for its shareholders with the highest return achieved in 2021.
Overall, Elevance Health Inc has demonstrated solid profitability ratios over the years, indicating efficient management of both assets and capital to generate returns for its shareholders.