Elevance Health Inc (ELV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.23 | 0.23 | 0.22 | 0.21 | 0.21 | 0.20 | 0.22 | 0.22 | 0.23 | 0.24 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.24 | 0.23 | 0.23 |
| Debt-to-capital ratio | 0.37 | 0.38 | 0.39 | 0.40 | 0.38 | 0.37 | 0.37 | 0.36 | 0.37 | 0.38 | 0.39 | 0.40 | 0.37 | 0.36 | 0.37 | 0.37 | 0.36 | 0.38 | 0.36 | 0.37 |
| Debt-to-equity ratio | 0.59 | 0.63 | 0.65 | 0.67 | 0.62 | 0.59 | 0.59 | 0.55 | 0.59 | 0.61 | 0.64 | 0.67 | 0.58 | 0.56 | 0.58 | 0.60 | 0.56 | 0.60 | 0.57 | 0.58 |
| Financial leverage ratio | 2.77 | 2.88 | 2.86 | 2.92 | 2.84 | 2.86 | 2.82 | 2.79 | 2.70 | 2.74 | 2.75 | 2.83 | 2.61 | 2.55 | 2.55 | 2.60 | 2.44 | 2.48 | 2.46 | 2.48 |
The solvency ratios of Elevance Health Inc provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has remained relatively stable around 0.23 over the past few quarters. This indicates that around 23% of the company's assets are funded by debt, suggesting a moderate level of leverage.
The debt-to-capital ratio has also been consistent, fluctuating between 0.39 and 0.41. This ratio shows that debt accounts for approximately 39% to 41% of the company's total capital structure, highlighting a balanced mix of debt and equity financing.
The debt-to-equity ratio has shown a slight upward trend from 0.65 to 0.68 over the periods analyzed. This demonstrates that the company relies more on debt financing compared to equity, with around 66% to 68% of the total capital being debt-funded.
The financial leverage ratio has shown some variation, ranging from 2.77 to 2.92. This ratio indicates that the company has been using leverage to increase returns for shareholders, although the increasing trend suggests a higher degree of financial risk.
Overall, Elevance Health Inc's solvency ratios indicate a stable financial position with a reasonable level of debt relative to assets and capital. However, the increasing debt-to-equity ratio and financial leverage ratio warrant close monitoring to ensure the company's long-term financial sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Elevance Health Inc has been relatively stable over the past 8 quarters, ranging from 8.49 to 11.03. A higher interest coverage ratio indicates that the company is generating sufficient operating income to cover its interest expenses comfortably. This implies that Elevance Health Inc has a strong ability to meet its interest obligations from its operating profits. The consistent high values of the interest coverage ratio suggest that the company has a robust financial position and is effectively managing its debt obligations. Overall, Elevance Health Inc appears to have a healthy financial status in terms of its ability to cover interest costs.