Stock Analysis on Net

Humana Inc. (NYSE:HUM)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Humana Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 16 17 17 19 20
Buildings and leasehold improvements 1,002 1,143 1,126 952 874
Equipment 1,320 1,246 1,148 1,009 922
Computer software 3,546 3,951 3,656 3,514 2,799
Property and equipment, cost 5,884 6,357 5,947 5,494 4,615
Accumulated depreciation (2,854) (3,136) (2,874) (3,123) (2,660)
Property and equipment, net 3,030 3,221 3,073 2,371 1,955

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).

Item Description The company
Property and equipment, cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Humana Inc. property and equipment, cost increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Humana Inc. property and equipment, net increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Asset Age Ratios (Summary)

Humana Inc., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 48.64% 49.46% 48.47% 57.04% 57.89%
Estimated total useful life (years) 7 8 9 10 9
Estimated age, time elapsed since purchase (years) 3 4 4 6 5
Estimated remaining life (years) 4 4 5 4 4

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Humana Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Humana Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Humana Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Humana Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 2,854 3,136 2,874 3,123 2,660
Property and equipment, cost 5,884 6,357 5,947 5,494 4,615
Land 16 17 17 19 20
Asset Age Ratio
Average age1 48.64% 49.46% 48.47% 57.04% 57.89%

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).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, cost – Land)
= 100 × 2,854 ÷ (5,88416) = 48.64%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Humana Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property and equipment, cost 5,884 6,357 5,947 5,494 4,615
Land 16 17 17 19 20
Depreciation expense 831 749 640 528 505
Asset Age Ratio (Years)
Estimated total useful life1 7 8 9 10 9

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).

2023 Calculations

1 Estimated total useful life = (Property and equipment, cost – Land) ÷ Depreciation expense
= (5,88416) ÷ 831 = 7

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Humana Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 2,854 3,136 2,874 3,123 2,660
Depreciation expense 831 749 640 528 505
Asset Age Ratio (Years)
Time elapsed since purchase1 3 4 4 6 5

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).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 2,854 ÷ 831 = 3

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Humana Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property and equipment, net 3,030 3,221 3,073 2,371 1,955
Land 16 17 17 19 20
Depreciation expense 831 749 640 528 505
Asset Age Ratio (Years)
Estimated remaining life1 4 4 5 4 4

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).

2023 Calculations

1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (3,03016) ÷ 831 = 4

Asset age ratio Description The company
Estimated remaining life Humana Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 and from 2022 to 2023.