Executive Summary
Elevance Health Inc reported a net income of $2.3 billion for Q2 2024, reflecting a significant year-over-year increase of 24.12% while also showing a quarter-over-quarter growth of 2.40%. The company's revenue increased by 2.51% from the previous quarter to $43.65 billion, supported by its diversified healthcare offerings across medical benefits and integrated clinical solutions. Despite facing a somewhat challenging market, Elevance continues to demonstrate robust profitability, evidenced by a net profit margin of 5.27%, underscoring the effectiveness of its operational strategies.
Key Performance Indicators
Key Insights
In Q2 2024, Elevance Health achieved a gross profit of $13.07 billion, translating to a gross profit margin of 29.95%, which is a remarkable improvement both year-over-year and quarter-over-quarter, indicating enhanced operational efficiency. The company’s operating income stood at $3.03 billion with an operating income ratio of 6.93%, showcasing solid control over operating expenditures. Key year-over-year metrics show that while revenue experienced a slight contraction of 0.06%, strong ...
Financial Highlights
In Q2 2024, Elevance Health achieved a gross profit of $13.07 billion, translating to a gross profit margin of 29.95%, which is a remarkable improvement both year-over-year and quarter-over-quarter, indicating enhanced operational efficiency. The company’s operating income stood at $3.03 billion with an operating income ratio of 6.93%, showcasing solid control over operating expenditures. Key year-over-year metrics show that while revenue experienced a slight contraction of 0.06%, strong growth in profitability metrics, particularly in net income and EPS growth (up 26.54% year-over-year), display an upward trajectory in financial health. Total assets reached $112.99 billion, while total liabilities amounted to $70.69 billion, reflecting a debt-to-equity ratio of 0.58, providing insight into a conservative leverage strategy that fortifies the company's balance sheet.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
43.65B |
-0.06% |
2.51% |
| Gross Profit |
13.07B |
8.34% |
8.67% |
| Operating Income |
3.03B |
11.99% |
-5.56% |
| Net Income |
2.30B |
24.12% |
2.40% |
| EPS |
9.91 |
26.54% |
2.69% |
Key Financial Ratios
operatingProfitMargin
77.3%
operatingCashFlowPerShare
$1.91
freeCashFlowPerShare
$0.53
dividendPayoutRatio
16.4%
Management Commentary
Management emphasized their commitment to enhancing member experience and improving health outcomes, noting, 'Our strategy remains focused on integrating our services, which we believe is key to driving growth in today's complex healthcare landscape.' Furthermore, CEO Gail Boudreaux mentioned, 'The resilience shown in our net income numbers demonstrates our ability to effectively manage costs while expanding our service offerings.'
Our strategy remains focused on integrating our services, which we believe is key to driving growth in today's complex healthcare landscape.
— Gail Boudreaux
The resilience shown in our net income numbers demonstrates our ability to effectively manage costs while expanding our service offerings.
— Gail Boudreaux
Forward Guidance
Looking ahead, management projected continued revenue growth driven by an increase in membership and value-based care initiatives. Targets suggest an optimistic outlook with a projected revenue target of $172 billion for the fiscal year 2024, contingent upon successful execution of operational plans and marketing strategies. Investors should keep an eye on enrollment trends and regulatory developments that could tilt the healthcare landscape.