Elevance Health, Inc. stock research
FY2024 Q4
Elevance Health (ELV) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased while gross profit decreased, leading to a lower gross margin compared to the previous quarter. Cost of revenue grew at a faster rate than revenue, compressing the margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased while gross profit decreased, leading to a lower gross margin compared to the previous quarter. Cost of revenue grew at a faster rate than revenue, compressing the margin.
- Gross profit declined despite higher revenue, indicating that cost of revenue grew significantly more than revenue. This was the strongest observable factor driving the margin lower.
- Compared to the prior quarter, gross margin weakened, driven by a larger increase in cost of revenue relative to revenue. Versus the same quarter a year ago, the margin was also lower, as cost of revenue grew more than revenue over that period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.8%
Gross profit
$39.4B
Revenue
$45.4B
Cost of revenue
$6.0B
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-1.9 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, 2024 | $42.6B | $38.8B | $3.8B | 91.0% |
| Jun 30, 2024 | $43.9B | $39.1B | $4.8B | 89.0% |
| Sep 30, 2024 | $45.1B | $40.0B | $5.1B | 88.7% |
| Dec 31, 2024 | $45.4B | $39.4B | $6.0B | 86.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.9 pts
Year-over-year change
Dec 31, 2023
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit declined despite higher revenue, indicating that cost of revenue grew significantly more than revenue. This was the strongest observable factor driving the margin lower.
Compared to the prior quarter, gross margin weakened, driven by a larger increase in cost of revenue relative to revenue. Versus the same quarter a year ago, the margin was also lower, as cost of revenue grew more than revenue over that period.
Monitor the trend in cost of revenue relative to revenue growth, as its faster expansion is the primary factor behind the margin decline.