Elevance Health Inc (ELV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 108,928,000 | 102,755,000 | 97,456,000 | 86,615,000 | 77,453,000 |
| Total stockholders’ equity | US$ in thousands | 39,306,000 | 36,243,000 | 36,095,000 | 33,199,000 | 31,728,000 |
| Financial leverage ratio | 2.77 | 2.84 | 2.70 | 2.61 | 2.44 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $108,928,000K ÷ $39,306,000K
= 2.77
The financial leverage ratio of Elevance Health Inc has shown a general increasing trend over the past five years, rising from 2.44 in 2019 to 2.77 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth. The steady increase in the financial leverage ratio suggests that the firm's debt levels have been on the rise relative to its equity, which may pose increased risk in terms of debt repayment obligations and financial stability. It is important for stakeholders to closely monitor this trend to ensure that the company's debt levels remain manageable and do not jeopardize its financial health in the long run.
Peer comparison
Dec 31, 2023