Elevance Health Inc (ELV)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,980,000 | 5,987,000 | 5,894,000 | 6,104,000 | 4,572,000 |
| Total stockholders’ equity | US$ in thousands | 41,315,000 | 39,306,000 | 36,243,000 | 36,060,000 | 33,199,000 |
| ROE | 14.47% | 15.23% | 16.26% | 16.93% | 13.77% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,980,000K ÷ $41,315,000K
= 14.47%
Elevance Health Inc's return on equity (ROE) has shown a positive trend over the period from December 31, 2020, to December 31, 2024. The ROE increased from 13.77% in 2020 to 16.93% in 2021, indicating improved profitability relative to shareholders' equity. However, there was a slight decrease to 16.26% in 2022, followed by a further decline to 15.23% in 2023, and ultimately dropping to 14.47% in 2024.
Despite the fluctuations, Elevance Health Inc's ROE remained above 10% throughout the period, signifying that the company has been generating a satisfactory return on the equity invested by shareholders. The declining trend in recent years may suggest potential challenges in maintaining or growing profitability relative to the shareholders' equity, and management may need to investigate the factors contributing to this downward trajectory to ensure long-term sustainable growth and value creation for the company.
Peer comparison
Dec 31, 2024