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

Microsoft Excel
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).

An analysis of the common-size income statement reveals a contraction in net profitability from 2019 to 2023, characterized by a gradual increase in operating expenses relative to external revenues.

Revenue Composition
External revenues are overwhelmingly driven by premiums, which consistently account for the vast majority of income, ranging between 94.84% and 97.77%. A minor diversification into services is observed, with its share of revenue peaking at 5.16% in 2022 before moderating to 3.83% in 2023.
Operating Expense Analysis
Total operating expenses have trended upward, moving from 94.96% of revenues in 2020 to 97.20% in 2023. The primary driver is benefit costs, which remain the most significant expenditure, fluctuating between 81.09% and 83.94%. Operating costs have also remained relatively high, fluctuating between 11.46% and 13.70% over the five-year period.
Profitability and Margin Trends
Income from operations reached a peak of 6.56% in 2020 but has since declined to 3.81% by 2023. This compression is reflected in the net income attributable to the company, which shows a steady downward trajectory from 4.43% in 2020 to 2.36% in 2023, indicating a significant reduction in the bottom-line margin over the last three years.
Non-Operating Items
Investment income exhibits notable volatility, peaking at 1.52% in 2020 and dipping to 0.23% in 2021, before recovering to 1.02% in 2023. Interest expenses have shown a gradual increase as a percentage of external revenues, rising from -0.38% in 2019 to -0.47% in 2023.

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