Elevance Health Inc (ELV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	39,306,000	36,243,000	36,095,000	33,199,000	31,728,000
ROE		15.23%	16.26%	16.91%	13.77%	15.15%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,987,000K ÷ $39,306,000K
= 15.23%

The return on equity (ROE) for Elevance Health Inc over the past five years has ranged from 13.77% in 2020 to 16.93% in 2021. The ROE decreased slightly to 15.15% in 2019, then increased to 16.59% in 2022 before reaching a peak of 16.93% in 2021. However, it slightly declined to 15.23% in 2023.

Overall, Elevance Health Inc has demonstrated a relatively stable ROE performance, with the ratios consistently above 13% over the period. This indicates that the company has been generating a healthy return for its shareholders relative to the equity invested in the business.

While a higher ROE generally signifies better profitability and efficient use of equity capital, the downward trend in recent years may warrant further investigation into the company's financial performance and strategies to sustain or improve its profitability levels. It is important to compare the ROE to industry benchmarks and peer companies to gain a better understanding of Elevance Health Inc's competitive position in the market.