Elevance Health Inc (ELV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,987,000 | 5,894,000 | 6,104,000 | 4,572,000 | 4,807,000 |
| Total assets | US$ in thousands | 108,928,000 | 102,755,000 | 97,456,000 | 86,615,000 | 77,453,000 |
| ROA | 5.50% | 5.74% | 6.26% | 5.28% | 6.21% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $5,987,000K ÷ $108,928,000K
= 5.50%
Based on the ROA figures provided for Elevance Health Inc over the past five years, there has been some fluctuation in the company's ability to generate returns from its assets. The ROA percentage decreased from 6.21% in 2019 to 5.28% in 2020 before showing a slight increase in 2021 to 6.26%. However, in the subsequent years, the ROA declined again to 5.86% in 2022 and further to 5.50% in 2023.
The declining trend in ROA indicates that Elevance Health Inc may be experiencing challenges in efficiently utilizing its assets to generate profits. It is crucial for the company to closely monitor and improve its asset management strategies to enhance its profitability and operational efficiency in the future.
Peer comparison
Dec 31, 2023