Elevance Health Inc (ELV)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 1,185,000 | 1,104,000 | 1,063,000 | 1,044,000 | 1,030,000 | 1,000,000 | 954,000 | 901,000 | 851,000 | 822,000 | 810,000 | 807,000 | 798,000 | 789,000 | 786,000 | 782,000 | 784,000 | 783,000 | 770,000 | 753,000 |
| Interest coverage | 7.67 | 8.52 | 9.07 | 8.70 | 8.25 | 8.60 | 9.49 | 9.66 | 10.13 | 10.78 | 10.75 | 11.03 | 10.94 | 10.04 | 8.02 | 9.09 | 8.96 | 9.59 | 11.16 | 9.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,089,000K ÷ $1,185,000K
= 7.67
Elevance Health Inc's interest coverage ratio has shown some fluctuations over the past few years. The ratio stood at 9.14 as of March 31, 2020, indicating that the company generated enough operating income to cover its interest expenses approximately 9 times.
The interest coverage ratio improved to 11.16 by June 30, 2020, signifying a stronger ability to meet interest obligations. However, the ratio decreased to 8.96 by December 31, 2020, but remained above 8, indicating a reasonable level of interest coverage.
Subsequently, Elevance Health Inc's interest coverage ratio fluctuated between 8 and 11 over the following quarters, with values ranging from 8.02 to 11.03. These fluctuations may suggest varying levels of operating income relative to interest expenses during these periods.
Overall, Elevance Health Inc's interest coverage ratio has generally remained within a moderate range, showing a relatively consistent ability to cover its interest payments. It's important for the company to monitor this ratio closely to ensure it maintains a healthy financial position and liquidity.
Peer comparison
Dec 31, 2024