How did tax expenses impact ELV's bottom line in recent years?

Elevance Health's (ELV) tax expenses have had a significant impact on its bottom line, particularly in recent years:

1. **Tax Expense Increase**: Elevance Health's tax expense for the fourth quarter of 2024 was $193 million. While this figure is substantial, it is important to consider it in the context of the company's overall financial performance.

|code|Ticker|Name|Date|Net Income|Taxes Payable|market_code|
|---|---|---|---|---|---|---|
|ELV|ELV.N|Elevance Health|2024 Q1|2.249E9||169|
|ELV|ELV.N|Elevance Health|2024 Q2|2.301E9||169|
|ELV|ELV.N|Elevance Health|2024 Q3|1.008E9||169|
|ELV|ELV.N|Elevance Health|2024 Q4|4.13E8||169|

2. **Net Income Decline**: Despite a reported net income of $413 million for the same period, Elevance Health experienced a notable decline in net income compared to the previous year, where it stood at $856 million. This decline is a result of various factors, including higher medical costs in the safety-net Medicaid program, which has squeezed profit margins.
3. **Revenue Growth**: Elevance Health's total revenue for the fourth quarter of 2024 was $45.44 billion, reflecting a growth of approximately 6% year-over-year. This revenue growth is a positive indicator, but it is offset by the increased expenses, including tax and medical costs.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|ELV|ELV.N|Elevance Health|2024 Q1|0.9603528407474153|4.2577E10|169|
|ELV|ELV.N|Elevance Health|2024 Q2|0.4900164865359956|4.3886E10|169|
|ELV|ELV.N|Elevance Health|2024 Q3|5.2673341268174285|4.5106E10|169|
|ELV|ELV.N|Elevance Health|2024 Q4|6.55380214317537|4.5442E10|169|

4. **Financial Challenges**: The company has been navigating a challenging environment, with dynamic industry conditions and shifts in Medicaid and Medicare coverage policies. These factors have led to a mismatch between costs and reimbursement rates, resulting in pressure on profitability.

In conclusion, while Elevance Health has managed to grow its revenue, the impact of higher tax expenses, particularly in light of increased medical costs, has significantly affected its net income. The company's ability to manage these expenses and maintain revenue growth will be crucial for sustaining its financial performance in the coming years.