Elevance Health Inc (ELV)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,741,000 | 8,887,000 | 9,330,000 | 8,980,000 | 8,642,000 | 8,823,000 | 8,682,000 | 8,883,000 | 8,732,000 | 7,922,000 | 6,305,000 | 7,105,000 | 7,022,000 | 7,508,000 | 8,595,000 | 6,882,000 | 6,731,000 | 6,174,000 | 5,930,000 | 5,989,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 746,000 | 745,000 | 748,000 | 756,000 |
| Interest coverage | 8.49 | 8.89 | 9.78 | 9.97 | 10.16 | 10.73 | 10.72 | 11.01 | 10.94 | 10.04 | 8.02 | 9.09 | 8.96 | 9.59 | 11.16 | 9.14 | 9.02 | 8.29 | 7.93 | 7.92 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,741,000K ÷ $1,030,000K
= 8.49
Elevance Health Inc has demonstrated consistent and strong interest coverage ratios over the past eight quarters, ranging from 8.49 to 11.03. The interest coverage ratios indicate the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher ratio signifies a better ability to cover interest expenses, indicating a lower financial risk.
The trend shows a slight decline in interest coverage ratios over the quarters, with the ratio decreasing from 11.03 in Q1 2022 to 8.49 in Q4 2023. Despite this decline, the company has maintained healthy interest coverage ratios above 8 in all quarters, suggesting that it has sufficient earnings to comfortably cover its interest payments.
Overall, Elevance Health Inc's interest coverage ratios reflect a solid financial position and the ability to meet its debt obligations. However, the company should continue monitoring its interest coverage ratios to ensure they remain at adequate levels to support its financial health and stability.
Peer comparison
Dec 31, 2023