What is Elevance Health Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Elevance Health's annualized net income for the quarter that ended in Mar. 2024 was $8,984 Mil. Elevance Health's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $3,834 Mil. Therefore, Elevance Health's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 234.36%.
The historical rank and industry rank for Elevance Health's Return-on-Tangible-Equity or its related term are showing as below:
ELV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 196.35 Med: 370.96 Max: 606.94
Current: 227.82
During the past 13 years, Elevance Health's highest Return-on-Tangible-Equity was 606.94%. The lowest was 196.35%. And the median was 370.96%.
ELV's Return-on-Tangible-Equity is ranked better than 72.22% of 18
companies
in the Healthcare Plans industry
Industry Median: 32.395
vs ELV: 227.82
Elevance Health Return-on-Tangible-Equity Historical Data
The historical data trend for Elevance Health's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Elevance Health's Return-on-Tangible-Equity
For the Healthcare Plans subindustry, Elevance Health's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Elevance Health's Return-on-Tangible-Equity Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Elevance Health's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elevance Health's Return-on-Tangible-Equity falls into.
Elevance Health Return-on-Tangible-Equity Calculation
Elevance Health's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Elevance Health (NYSE:ELV) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Elevance Health Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Elevance Health's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Elevance Health (Elevance Health) Business Description
Elevance Health remains one of the leading health insurers in the U.S., providing medical benefits to 48 million medical members as of June 2023. The company offers employer, individual, and government-sponsored coverage plans. Elevance differs from its peers in its unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating as the licensee for the Blue Cross Blue Shield Association in 14 states. Through acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance's reach expands beyond those states through government-sponsored programs such as Medicaid and Medicare Advantage plans, too.
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