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Elevance Health (NYSE:ELV) Interest Coverage

: 4.86 (As of Dec. 2023)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Elevance Health's EBIT for the three months ended in Dec. 2023 was $1,260 Mil. Elevance Health's Interest Expense for the three months ended in Dec. 2023 was $-259 Mil. Elevance Health's interest coverage for the quarter that ended in Dec. 2023 was 4.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Elevance Health's Interest Coverage or its related term are showing as below:

ELV' s Interest Coverage Range Over the Past 10 Years
Min: 6.36   Med: 8.38   Max: 11.02
Current: 8.49


ELV's Interest Coverage is ranked better than
53.85% of 13 companies
in the Healthcare Plans industry
Industry Median: 7.86 vs ELV: 8.49

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Elevance Health Interest Coverage Historical Data

The historical data trend for Elevance Health's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Elevance Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.02 8.96 11.02 9.93 8.49

Elevance Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage 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 5.56 11.43 10.35 7.39 4.86

Competitive Comparison

For the Healthcare Plans subindustry, Elevance Health's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Healthcare Plans industry and Healthcare sector, Elevance Health's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Elevance Health's Interest Coverage falls into.



Elevance Health Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage=-1* EBIT /Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Elevance Health's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Elevance Health's Interest Expense was $-1,030 Mil. Its EBIT was $8,745 Mil. And its Long-Term Debt & Capital Lease Obligation was $23,246 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*8745/-1030
=8.49

Elevance Health's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Elevance Health's Interest Expense was $-259 Mil. Its EBIT was $1,260 Mil. And its Long-Term Debt & Capital Lease Obligation was $23,246 Mil.

Interest Coverage=-1* EBIT (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1260/-259
=4.86

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Elevance Health  (NYSE:ELV) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Elevance Health Interest Coverage Related Terms

Thank you for viewing the detailed overview of Elevance Health's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


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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