Analysis of Debt
Total Debt (Carrying Amount)
Humana Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The total debt carrying amount exhibits a significant upward trajectory over the five-year period from 2019 to 2023. A substantial increase is noted between 2020 and 2021, where total debt nearly doubled, followed by a period of relative stabilization with minor fluctuations in the subsequent two years.
- Total Debt Evolution
- Total debt rose from 5,891 million US$ in 2019 to a peak of 12,820 million US$ in 2021. Although a slight contraction occurred in 2022 to 11,424 million US$, the balance increased again to 12,009 million US$ by the end of 2023, representing an overall increase of approximately 103.8% over the analyzed period.
- Long-term Debt Analysis
- Long-term debt serves as the primary driver of the total debt profile. This component grew from 4,967 million US$ in 2019 to 10,541 million US$ in 2021. While it experienced a dip to 9,034 million US$ in 2022, it rebounded to 10,213 million US$ in 2023, consistently accounting for the vast majority of the total carrying amount.
- Short-term Debt and Overdraft Trends
- Short-term debt remained relatively stable between 2019 and 2020 but surged to 1,953 million US$ in 2021 and peaked at 2,092 million US$ in 2022 before declining to 1,443 million US$ in 2023. Book overdrafts remained a minimal portion of the overall debt structure, though a gradual increase is observed, rising from 225 million US$ in 2019 to 353 million US$ in 2023.
- Debt Composition and Leverage Patterns
- The shift in the debt profile is most pronounced in 2021, indicating a significant financing event or strategic capital expansion. The subsequent movements suggest a management effort to optimize the balance between short-term and long-term obligations, as evidenced by the reduction in short-term debt in 2023 despite a simultaneous increase in long-term liabilities.
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Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Book overdraft | 353) |
| Commercial paper | 871) |
| Senior notes | 10,600) |
| Term loans | —) |
| Total debt (fair value) | 11,824) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.63%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.68% | 871) | 49) | |
| 3.85% | 572) | 22) | |
| 4.50% | 598) | 27) | |
| 5.70% | 498) | 28) | |
| 1.35% | 688) | 9) | |
| 3.95% | 537) | 21) | |
| 5.75% | 495) | 28) | |
| 5.75% | 495) | 28) | |
| 3.70% | 590) | 22) | |
| 3.13% | 433) | 14) | |
| 4.88% | 496) | 24) | |
| 2.15% | 743) | 16) | |
| 5.88% | 750) | 44) | |
| 5.95% | 840) | 50) | |
| 8.15% | 261) | 21) | |
| 4.63% | 396) | 18) | |
| 4.95% | 740) | 37) | |
| 4.80% | 396) | 19) | |
| 3.95% | 529) | 21) | |
| 5.50% | 728) | 40) | |
| Total | 11,656) | 540) | |
| 4.63% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 540 ÷ 11,656 = 4.63%