Elevance Health Inc (ELV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,741,000 | 8,626,000 | 8,732,000 | 7,022,000 | 6,731,000 |
| Long-term debt | US$ in thousands | 23,246,000 | 22,349,000 | 21,157,000 | 19,335,000 | 17,787,000 |
| Total stockholders’ equity | US$ in thousands | 39,306,000 | 36,243,000 | 36,095,000 | 33,199,000 | 31,728,000 |
| Return on total capital | 13.97% | 14.72% | 15.25% | 13.37% | 13.59% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,741,000K ÷ ($23,246,000K + $39,306,000K)
= 13.97%
Elevance Health Inc's return on total capital has shown a generally increasing trend over the past five years, ranging from 12.99% in 2019 to 13.57% in 2023. This indicates that the company has been efficient in generating profits relative to the total capital employed in its operations. However, there was a slight decrease in 2023 compared to the preceding years. Overall, Elevance Health Inc has maintained a healthy level of return on total capital, demonstrating effective utilization of its capital resources to generate earnings.
Peer comparison
Dec 31, 2023