Elevance Health Inc (ELV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,904,000 | 8,745,000 | 8,451,000 | 8,946,000 | 7,711,000 |
| Total assets | US$ in thousands | 116,889,000 | 108,928,000 | 102,755,000 | 97,460,000 | 86,615,000 |
| Operating ROA | 6.76% | 8.03% | 8.22% | 9.18% | 8.90% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,904,000K ÷ $116,889,000K
= 6.76%
Elevance Health Inc's operating return on assets (Operating ROA) has shown a fluctuating trend over the past five years. Starting at 8.90% on December 31, 2020, it increased slightly to 9.18% by December 31, 2021. However, in the subsequent years, the Operating ROA experienced a decline to 8.22% by December 31, 2022, and further dropped to 8.03% by December 31, 2023. The most notable decrease was seen by the end of December 31, 2024, where the Operating ROA fell to 6.76%.
This downward trend in Operating ROA raises concerns about Elevance Health Inc's efficiency in generating profits from its assets dedicated to operations. It may indicate challenges in managing costs effectively, utilizing assets efficiently, or generating sufficient revenue. Further analysis of the company's financial performance and operational strategies would be necessary to identify the underlying factors contributing to this declining trend in Operating ROA and to develop appropriate remedial actions.
Peer comparison
Dec 31, 2024