Elevance Health Inc (ELV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,696,000 | 8,745,000 | 8,451,000 | 4,702,000 | 7,022,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 41,315,000 | 39,306,000 | 36,243,000 | 36,060,000 | 33,199,000 |
| Return on total capital | 18.63% | 22.25% | 23.32% | 13.04% | 21.15% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,696,000K ÷ ($—K + $41,315,000K)
= 18.63%
The return on total capital for Elevance Health Inc has exhibited fluctuating trends over the past five years. Starting at 21.15% in December 31, 2020, there was a decline in the return on total capital to 13.04% by December 31, 2021. However, there was a significant recovery in the subsequent years with the return on total capital reaching 23.32% in December 31, 2022, followed by a slight decrease to 22.25% by December 31, 2023. Nevertheless, by December 31, 2024, the return on total capital declined again to 18.63%.
Overall, Elevance Health Inc has demonstrated a mix of performance levels in terms of generating returns on its total capital base, with notable improvements in some years and slight declines in others. It will be important for the company to closely monitor and manage its capital allocation strategies to optimize the return on total capital in future periods.
Peer comparison
Dec 31, 2024