Elevance Health Inc (ELV)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,089,000 | 9,403,000 | 9,643,000 | 9,079,000 | 8,494,000 | 8,604,000 | 9,050,000 | 8,702,000 | 8,620,000 | 8,862,000 | 8,707,000 | 8,903,000 | 8,732,000 | 7,922,000 | 6,305,000 | 7,105,000 | 7,022,000 | 7,508,000 | 8,595,000 | 6,882,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 41,315,000 | 43,775,000 | 42,191,000 | 40,608,000 | 39,306,000 | 38,423,000 | 38,205,000 | 37,356,000 | 36,243,000 | 35,991,000 | 35,812,000 | 35,975,000 | 36,060,000 | 35,737,000 | 34,968,000 | 33,853,000 | 33,199,000 | 33,921,000 | 34,455,000 | 31,693,000 |
| Return on total capital | 22.00% | 21.48% | 22.86% | 22.36% | 21.61% | 22.39% | 23.69% | 23.29% | 23.78% | 24.62% | 24.31% | 24.75% | 24.22% | 22.17% | 18.03% | 20.99% | 21.15% | 22.13% | 24.95% | 21.71% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,089,000K ÷ ($—K + $41,315,000K)
= 22.00%
Elevance Health Inc's return on total capital has shown fluctuation over the past few years. The ratio ranged from a high of 24.95% on June 30, 2020, to a low of 18.03% on June 30, 2021. Despite this variability, the return on total capital generally remained within a relatively narrow range, with a steady upward trend from March 31, 2020, to June 30, 2022. However, there was a slight decrease in the ratio from June 30, 2022, to December 31, 2024.
Overall, Elevance Health Inc's return on total capital has been relatively healthy, consistently above 20% for most periods. This indicates that the company has been effectively utilizing its capital to generate profits. It is essential for the company to closely monitor this ratio to ensure continued efficient use of its resources and sustained profitability.
Peer comparison
Dec 31, 2024