Elevance Health Inc (ELV)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,499,000 | 8,283,000 | 7,489,000 | 6,360,000 | 5,999,000 |
| Revenue | US$ in thousands | 171,340,000 | 156,595,000 | 138,639,000 | 121,867,000 | 104,213,000 |
| Operating profit margin | 4.96% | 5.29% | 5.40% | 5.22% | 5.76% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $8,499,000K ÷ $171,340,000K
= 4.96%
Operating profit margin, a key profitability ratio, measures the company's efficiency in generating profits from its core operations.
Elevance Health Inc's operating profit margin has shown a slight declining trend over the past five years. In 2023, the operating profit margin decreased to 4.07% from 4.58% in 2022. This decline suggests that the company's ability to control operating expenses relative to its revenue may have weakened compared to the previous year.
However, it is important to note that the company's operating profit margin has fluctuated over the years, with variations seen between 4.97% and 5.44% from 2019 to 2021. This indicates potential volatility in the company's operational efficiency and cost management, which might be influenced by various internal and external factors.
Overall, a lower operating profit margin could signify potential challenges in maintaining profitability at the operating level for Elevance Health Inc. Further analysis of the company's cost structure, revenue dynamics, and operational efficiency is recommended to identify areas for improvement and sustain healthy profitability in the future.
Peer comparison
Dec 31, 2023