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Stock impact report

Elevance Health (NYSE:ELV) May Have Issues Allocating Its Capital [Yahoo! Finance]

Elevance Health, Inc. (ELV) 
Company Research Source: Yahoo! Finance
In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Although, when we looked at Elevance Health NYSE:ELV ), it didn't seem to tick all of these boxes. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Elevance Health is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.099 = US$8.1b ÷ (US$123b - US$41b) ( Show less Read more
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