Stock Analysis on Net
Stock Analysis on Net

Humana Inc. (NYSE:HUM)

This company has been moved to the archive! The financial data has not been updated since October 30, 2024.

Common-Size Income Statement 

Humana Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Premiums 96.17 94.84 96.31 97.61 97.77
Services 3.83 5.16 3.69 2.39 2.23
External revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Investment income 1.02 0.41 0.23 1.52 0.78
Benefits -83.94 -81.84 -83.50 -81.09 -83.65
Operating costs -12.52 -13.70 -12.21 -13.23 -11.46
Depreciation and amortization -0.74 -0.77 -0.72 -0.64 -0.71
Operating expenses -97.20% -96.30% -96.43% -94.96% -95.82%
Income from operations 3.81% 4.11% 3.80% 6.56% 4.96%
Gain on sale of Gentiva Hospice 0.00 0.26 0.00 0.00 0.00
Interest expense -0.47 -0.43 -0.39 -0.37 -0.38
Other income (expense), net -0.13 -0.07 0.64 -0.14 0.79
Income before income taxes and equity in net earnings (losses) 3.21% 3.86% 4.05% 6.05% 5.37%
Provision for income taxes -0.79 -0.82 -0.59 -1.72 -1.19
Equity in net earnings (losses) -0.06 0.00 0.08 0.10 0.02
Net income 2.36% 3.03% 3.54% 4.43% 4.20%
Net (income) loss attributable to noncontrolling interests 0.00 0.00 0.00 0.00 0.00
Net income attributable to Humana 2.36% 3.03% 3.54% 4.43% 4.20%

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).

Revenue Composition
Premiums consistently represent the majority of external revenues, showing a slight downward trend from 97.77% in 2019 to 94.84% in 2022, followed by a modest recovery to 96.17% in 2023. Services revenues have increased significantly from 2.23% in 2019 to a peak of 5.16% in 2022, before declining to 3.83% in 2023. Investment income has shown volatility, reaching a high of 1.52% in 2020, declining sharply in 2021, and partially recovering by 2023.
Cost Structure
Benefits expenses have fluctuated near the mid-80% range of external revenues, showing a slight improvement in some years but ultimately increasing to -83.94% in 2023, close to the 2019 level. Operating costs exhibit variability without a clear trend, peaking at -13.7% in 2022, then decreasing to -12.52% in 2023. Depreciation and amortization expenses remain relatively stable, generally near -0.7% throughout the analyzed period.
Operating Expenses and Income
Total operating expenses account for a substantial portion of external revenues, consistently near -96%. Income from operations fluctuated, increasing from 4.96% in 2019 to a peak of 6.56% in 2020, but then declined to 3.81% by 2023. A notable one-time gain on the sale of Gentiva Hospice was realized in 2022, contributing 0.26% of external revenues.
Financial Expenses and Other Income
Interest expense has gradually increased from -0.38% in 2019 to -0.47% in 2023, indicating higher borrowing costs or debt levels. Other income (expense), net, has been inconsistent, showing positive contributions in some years (2019 and 2021) but marginal negative impacts in most recent years.
Profitability
Income before income taxes and equity in net earnings declined steadily from 5.37% in 2019 to 3.21% in 2023. The provision for income taxes peaked in 2020 at -1.72%, then stabilized around -0.79% by 2023. Equity in net earnings remained relatively insignificant throughout the period.
Net Income
Net income attributable to the company showed a clear downward trend over the five-year period, decreasing from 4.2% of external revenues in 2019 to 2.36% in 2023. This decline reflects pressures on profitability despite relatively stable revenue components and cost management.

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