Elevance Health Inc (ELV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.83 | 2.77 | 2.84 | 2.70 | 2.61 |
Elevance Health Inc has consistently maintained a very strong solvency position, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 over the five-year period from 2020 to 2024. This suggests that the company has effectively managed its debt levels in relation to its total assets, capital structure, and equity.
Additionally, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has remained relatively stable over the same period, ranging from 2.61 to 2.84. While a financial leverage ratio above 1 indicates that the company carries more debt than equity, Elevance Health Inc's ratios are within a moderate range, signifying that the company has a balanced mix of debt and equity in its capital structure.
Overall, Elevance Health Inc's solvency ratios demonstrate a conservative approach to managing its debt and financial leverage, which is essential for maintaining financial stability and sustainability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.49 | 8.49 | 9.93 | 5.89 | 8.96 |
The interest coverage ratio for Elevance Health Inc has shown some fluctuations over the past five years. In December 2020, the interest coverage ratio was 8.96, indicating that the company's operating income was nearly 9 times its interest expenses. However, by December 2021, this ratio decreased to 5.89, suggesting a lower ability to cover interest payments with operating income.
There was an improvement in December 2022, with the interest coverage ratio rising to 9.93, indicating that the company's ability to cover interest expenses had strengthened. Subsequently, in December 2023, the ratio decreased slightly to 8.49, still showing a solid coverage of interest obligations.
However, by December 2024, the interest coverage ratio further declined to 6.49, signaling a decrease in the company's ability to cover interest expenses with its operating income compared to the previous year. Overall, Elevance Health Inc should keep monitoring its interest coverage ratio to ensure it maintains a healthy financial position and can meet its debt obligations comfortably.