Aureus
FRed Flag

Elevance Health, Inc.(ELV)

F

Financial data as of Dec 31, 2025Improving · Healthcare

FCF Margin1.5%Free Cash Flow / Revenue
Cash Conversion75.8%Operating CF / Net Income
Free Cash Flow$3.2B
Revenue$199.1B
Net Cash-$22.6BNet debt position
Debt / FCF11.1xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth+200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Very high debt-to-FCF ratio (11.1x)
→
-1Current ratio below 1.0 (0.00)
→
+1Strong YoY FCF growth (200.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.05)
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+200.0%)

Concerns

  • Low FCF margin (1.5%)
  • Heavy debt position ($22.6B net debt, 11.1x FCF)
  • High debt-to-FCF ratio (11.1x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.5%
Net Margin2.8%
Operating CF Margin2.2%
CapEx Ratio0.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$22.6BNet debt position
Debt / FCF11.1xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity0.73Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameElevance Health, Inc.
SectorHealthcare
Free Cash Flow$3.2B
Revenue$199.1B
Net Income$5.7B
Operating Cash Flow$4.3B
Capital Expenditure$1.1B
FCF Margin1.5%
Cash Conversion Rate75.8%
Net Margin2.8%
Total Debt$32.0B
Total Cash$9.5B
Net Cash-$22.6B
Current Ratio0.00
Debt / Equity0.73
Debt / FCF11.1x
YoY FCF Growth+200.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Healthcare: 16 A-Grades, Seven Insurance Failures

Healthcare has the highest A-grade count of any sector, but health insurance is broken at the free cash flow level.

Apr 24, 2026
GILDABBVBMYZTS+11
Sector Report4 min read

Healthcare: 16 A-Grades and a Broken Insurance Model

Pharma prints cash at 25%+ margins. Health insurers are burning through it at 2%. Same sector, different planets.

Mar 23, 2026
GILDABBVBMYVRTX+10
Sector Report4 min read

Healthcare: Eleven A-Grades and Three Falling Giants

The healthcare sector splits into two groups: companies printing cash and insurers bleeding it. The trend breakdown tells you which side is winning.

Feb 13, 2026
GILDREGNZTSISRG+11