Elevance Health Inc (ELV)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -116,910,000 | -108,727,000 | -94,877,000 | -82,308,000 | -75,737,000 |
| Revenue | US$ in thousands | 171,340,000 | 156,595,000 | 138,639,000 | 121,867,000 | 104,213,000 |
| Gross profit margin | -68.23% | -69.43% | -68.43% | -67.54% | -72.68% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-116,910,000K ÷ $171,340,000K
= -68.23%
Based on the data provided, Elevance Health Inc's gross profit margin has shown a decreasing trend over the past five years. The gross profit margin declined from 98.07% in 2019 to 89.84% in 2023. This suggests that the company's ability to generate profit from its core business operations has weakened over this period.
A declining gross profit margin could indicate various factors such as increased production costs, pricing pressures, or inefficiencies in operations. It is important for Elevance Health Inc to closely monitor and address the underlying reasons contributing to the decrease in its gross profit margin to ensure sustainable profitability and competitiveness in the market.
Further analysis and comparison with industry benchmarks and peers can provide valuable insights into the company's performance and help in identifying areas for improvement in its cost structure and pricing strategies.
Peer comparison
Dec 31, 2023