Elevance Health, Inc. stock research
FY2023 Q4
Elevance Health (ELV) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was slightly lower than the prior quarter, while cost of revenue increased, reducing gross profit and weakening gross margin. Compared to the same quarter a year earlier, revenue was higher but cost of revenue grew more, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was slightly lower than the prior quarter, while cost of revenue increased, reducing gross profit and weakening gross margin. Compared to the same quarter a year earlier, revenue was higher but cost of revenue grew more, resulting in a lower gross margin.
- The strongest observable driver of the margin change is the rise in cost of revenue relative to revenue. Cost of revenue increased from both the prior quarter and the year-ago quarter, outpacing the change in revenue.
- Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier. The decline reflects a higher share of cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.7%
Gross profit
$37.8B
Revenue
$42.6B
Cost of revenue
$4.8B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-2.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $42.2B | $38.7B | $3.5B | 91.7% |
| Jun 30, 2023 | $43.7B | $39.3B | $4.3B | 90.1% |
| Sep 30, 2023 | $42.8B | $38.2B | $4.6B | 89.2% |
| Dec 31, 2023 | $42.6B | $37.8B | $4.8B | 88.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.5 pts
Year-over-year change
Dec 31, 2022
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the rise in cost of revenue relative to revenue. Cost of revenue increased from both the prior quarter and the year-ago quarter, outpacing the change in revenue.
Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier. The decline reflects a higher share of cost of revenue.
Monitor the trajectory of cost of revenue in relation to revenue, as its relative growth has pressured gross margin.