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Elevance Health (NYSE:ELV) Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Elevance Health has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Elevance Health's Piotroski F-Score or its related term are showing as below:

ELV' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 6   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Elevance Health was 8. The lowest was 5. And the median was 6.


Elevance Health Piotroski F-Score Historical Data

The historical data trend for Elevance Health's Piotroski F-Score 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.

* Premium members only.

Elevance Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 8.00 6.00 7.00

Elevance Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 5.00 7.00

Competitive Comparison

For the Healthcare Plans subindustry, Elevance Health's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Healthcare Plans industry and Healthcare sector, Elevance Health's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Elevance Health's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 1989 + 1853 + 1289 + 856 = $5,987 Mil.
Cash Flow from Operations was 6469 + 1950 + 2613 + -2971 = $8,061 Mil.
Revenue was 42172 + 43672 + 42849 + 42647 = $171,340 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(102755 + 109040 + 109168 + 110478 + 108928) / 5 = $108073.8 Mil.
Total Assets at the begining of this year (Dec22) was $102,755 Mil.
Long-Term Debt & Capital Lease Obligation was $23,246 Mil.
Total Assets was $108,928 Mil.
Total Liabilities was $69,523 Mil.
Net Income was 1789 + 1637 + 1603 + 865 = $5,894 Mil.

Revenue was 38095 + 38632 + 39939 + 39929 = $156,595 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(97460 + 100486 + 100877 + 103026 + 102755) / 5 = $100920.8 Mil.
Total Assets at the begining of last year (Dec21) was $97,460 Mil.
Long-Term Debt & Capital Lease Obligation was $22,349 Mil.
Total Assets was $102,755 Mil.
Total Liabilities was $66,425 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Elevance Health's current Net Income (TTM) was 5,987. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Elevance Health's current Cash Flow from Operations (TTM) was 8,061. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=5987/102755
=0.0582648

ROA (Last Year)=Net Income/Total Assets (Dec21)
=5894/97460
=0.06047609

Elevance Health's return on assets of this year was 0.0582648. Elevance Health's return on assets of last year was 0.06047609. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Elevance Health's current Net Income (TTM) was 5,987. Elevance Health's current Cash Flow from Operations (TTM) was 8,061. ==> 8,061 > 5,987 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=23246/108073.8
=0.21509376

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=22349/100920.8
=0.22145088

Elevance Health's gearing of this year was 0.21509376. Elevance Health's gearing of last year was 0.22145088. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Dec23)=Total Assets/Total Liabilities
=108928/69523
=1.56679085

Current Ratio (Last Year: Dec22)=Total Assets/Total Liabilities
=102755/66425
=1.54693263

Elevance Health's current ratio of this year was 1.56679085. Elevance Health's current ratio of last year was 1.54693263. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Elevance Health's number of shares in issue this year was 235.6. Elevance Health's number of shares in issue last year was 241.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=5987/171340
=0.03494222

Net Margin (Last Year: TTM)=Net Income/Revenue
=5894/156595
=0.03763849

Elevance Health's net margin of this year was 0.03494222. Elevance Health's net margin of last year was 0.03763849. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=171340/102755
=1.66746144

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=156595/97460
=1.60676175

Elevance Health's asset turnover of this year was 1.66746144. Elevance Health's asset turnover of last year was 1.60676175. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Elevance Health has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Elevance Health  (NYSE:ELV) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Elevance Health Piotroski F-Score Related Terms

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Elevance Health (NYSE:ELV) Business Description

Traded in Other Exchanges
Address
220 Virginia Avenue, Indianapolis, IN, USA, 46204
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.
Executives
Blair Williams Todt officer: EVP and Chief Legal Officer 8735 HENDERSON ROAD, TAMPA FL 33625
Ronald W Penczek officer: SVP, Chief Accounting Officer 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Mark Kaye officer: EVP & CFO Designate 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007
Dixon Robert L Jr director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Gloria M Mccarthy officer: EVP, Office of the CEO WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Kendrick Charles Morgan Jr officer: EVP & President, Commercial 220 VIRGINIA AVE, INDIANAPOLIS IN 46204
Deanna D Strable-soethout director C/O PRINCIPAL FINANCIAL GROUP, 711 HIGH ST., DES MOINES IA 50392
Ramiro G Peru director WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46260
Peter D Haytaian officer: EVP & Pres., Govt. Bus. Div. 220 VIRGINIA AVE, INDIANAPOLIS IN 46204
Susan D. Devore director C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Ryan M. Schneider director 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
John E Gallina officer: SVP & Chief Accounting Officer 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Julie A Hill director WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Thomas C Zielinski officer: EVP & General Counsel
Jeffrey D. Alter officer: EVP, IngenioRx & Anthem Health 4330 LA JOLLA VILLAGE DRIVE, SUITE 200, SAN DIEGO CA 92122

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