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UnitedHealth Group Inc. (UNH) | Short-term (Operating) Activity Analysis

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.


Ratios (Summary)

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UnitedHealth Group Inc., short-term (operating) activity ratios

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Turnover Ratios
chart Receivables turnover
chart Payables turnover
chart Working capital turnover
  Average No. of Days
chart Add: Average receivable collection period
chart Less: Average payables payment period

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

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. UnitedHealth Group Inc.'s receivables turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
Payables turnover An activity ratio calculated as revenue divided by payables. UnitedHealth Group Inc.'s payables turnover increased from 2009 to 2010 and from 2010 to 2011.
Working capital turnover An activity ratio calculated as revenue divided by working capital.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnoverd. UnitedHealth Group Inc.'s average receivable collection period improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. UnitedHealth Group Inc.'s average payables payment period declined from 2009 to 2010 and from 2010 to 2011.

Receivables Turnover

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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 Revenues
chart Accounts receivable, net of allowances
  Receivables Turnover, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

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

2011 Calculations

1 Receivables turnover = Revenues ÷ Accounts receivable, net of allowances
= ÷ =

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. UnitedHealth Group Inc.'s receivables turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.

Payables Turnover

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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 Revenues
chart Medical costs payable
  Payables Turnover, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

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

2011 Calculations

1 Payables turnover = Revenues ÷ Medical costs payable
= ÷ =

Ratio Description The company
Payables turnover An activity ratio calculated as revenue divided by payables. UnitedHealth Group Inc.'s payables turnover increased from 2009 to 2010 and from 2010 to 2011.

Working Capital Turnover

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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 Revenues
chart Working capital
  Working Capital Turnover, Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

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

2011 Calculations

1 Working capital turnover = Revenues ÷ Working capital
= ÷ =

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Average Receivable Collection Period

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data
chart Receivables turnover
  Average Receivable Collection Period (no. of days), Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

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

2011 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnoverd. UnitedHealth Group Inc.'s average receivable collection period improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.

Average Payables Payment Period

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data
chart Payables turnover
  Average Payables Payment Period (no. of days), Comparison to Industry
chart UnitedHealth Group Inc.1
  Industry, Health Care

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

2011 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

Ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. UnitedHealth Group Inc.'s average payables payment period declined from 2009 to 2010 and from 2010 to 2011.

May 24, 2012

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