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UnitedHealth Group Inc. (UNH) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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UnitedHealth Group Inc., debt and solvency ratios

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Debt to equity
chart Debt to capital
chart Interest coverage

Source: Based on data from UnitedHealth Group Inc. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. UnitedHealth Group Inc.'s debt-to-equity ratio improved from 2009 to 2010 and from 2010 to 2011.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. UnitedHealth Group Inc.'s debt-to-capital ratio improved from 2009 to 2010 and from 2010 to 2011.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. UnitedHealth Group Inc.'s interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011.

Debt to Equity

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Commercial paper and current maturities of long-term debt
chart Long-term debt, less current maturities
chart Total debt
chart Total shareholders’ equity
  Debt to Equity, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

Source: Based on data from UnitedHealth Group Inc. Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Total shareholders’ equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. UnitedHealth Group Inc.'s debt-to-equity ratio improved from 2009 to 2010 and from 2010 to 2011.

Debt to Capital

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Commercial paper and current maturities of long-term debt
chart Long-term debt, less current maturities
chart Total debt
chart Total shareholders’ equity
chart Total capital
  Debt to Capital, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

Source: Based on data from UnitedHealth Group Inc. Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. UnitedHealth Group Inc.'s debt-to-capital ratio improved from 2009 to 2010 and from 2010 to 2011.

Interest Coverage

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net earnings
chart Add: Interest expense
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

Source: Based on data from UnitedHealth Group Inc. Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. UnitedHealth Group Inc.'s interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011.

May 24, 2012

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