Summary
Elevance Health, Inc. (ELV) reported strong revenue growth for the fiscal year ended December 31, 2023, with total operating revenue increasing by 9.3% to $170.2 billion. This growth was primarily driven by premium rate increases in its Health Benefits segment and expansion in its CarelonRx pharmacy business, including the acquisition of BioPlus. Net income saw a modest increase of 1.7% to $5.99 billion, resulting in diluted earnings per share of $25.22, up 3.9%. The company experienced a decline in Medicaid membership due to the resumption of eligibility redeterminations, but this was offset by growth in Individual Public Exchange and Medicare Advantage membership. Elevance Health continues to manage healthcare costs effectively through various programs and pricing strategies, while also investing in digital transformation and expanding its Carelon brand for healthcare services. The company's financial health remains solid, with a debt-to-capital ratio of 38.9% as of December 31, 2023. Elevance Health also announced strategic acquisitions and a pending divestiture, signaling ongoing efforts to refine its business portfolio and enhance its market position.
Financial Highlights
53 data points| Revenue | $171.34B |
| Cost of Revenue | $17.29B |
| Gross Profit | $154.05B |
| SG&A Expenses | $20.09B |
| Operating Income | $8.50B |
| Interest Expense | $1.03B |
| Net Income | $5.99B |
| EPS (Basic) | $25.38 |
| EPS (Diluted) | $25.22 |
| Shares Outstanding (Basic) | 235.90M |
| Shares Outstanding (Diluted) | 237.40M |
Key Highlights
- 1Total operating revenue increased by 9.3% to $170.2 billion, driven by premium rate increases and growth in the CarelonRx pharmacy business.
- 2Net income grew by 1.7% to $5.99 billion, with diluted EPS increasing by 3.9% to $25.22.
- 3Medicaid membership declined due to eligibility redeterminations, but this was offset by growth in Individual Public Exchange and Medicare Advantage segments.
- 4The company's debt-to-capital ratio stood at a healthy 38.9% as of year-end 2023.
- 5Elevance Health is actively pursuing strategic growth through acquisitions (e.g., Paragon Healthcare, Centers Plan for Healthy Living) and divesting non-core businesses (life and disability).
- 6The company reported a significant reduction in Medicare Advantage plans with 4.0+ Star ratings for 2024, which is expected to impact 2025 bonus payments by approximately $500 million.