Humana Inc. (NYSE:HUM)

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Humana Inc., adjusted total assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Total assets	47,065)	43,055)	44,358)	34,969)	29,074)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Add: Allowance for doubtful accounts	88)	70)	83)	72)	69)
Less: Deferred income tax assets (classified as Other long-term assets)²	48)	—)	—)	—)	—)
After Adjustment
Adjusted total assets	47,105)	43,125)	44,441)	35,041)	29,143)

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).

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

² Deferred income tax assets (classified as Other long-term assets). See details »

A consistent upward trajectory in both total assets and adjusted total assets is observed between December 31, 2019, and December 31, 2023. Total assets grew from 29,074 million USD to 47,065 million USD, representing a substantial expansion of the asset base over the five-year period. While growth was aggressive between 2019 and 2021, a slight contraction occurred in 2022 before the upward trend resumed in 2023.

Asset Growth Dynamics: The most significant period of expansion occurred between 2020 and 2021, where total assets increased by approximately 26.8%. This was followed by a minor decrease of 3% in 2022, which was subsequently offset by a growth of 9.3% in 2023, bringing the total asset value to its highest recorded point in the analyzed period.
Analysis of Asset Adjustments: Adjusted total assets consistently remained higher than reported total assets throughout the entire duration. The variance between the two metrics remained marginal, indicating that the adjustments made to the balance sheet were minimal relative to the overall scale of the company's assets.
Adjustment Variance Trends: The absolute difference between total assets and adjusted total assets peaked in 2021 at 83 million USD. By 2023, this gap narrowed to 40 million USD, suggesting a reduction in the magnitude of the adjustments required for the total asset calculation in the most recent fiscal year.

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Humana Inc., adjusted current liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Current liabilities	18,872)	17,178)	15,331)	13,394)	10,929)
Adjustments
Less: Current unearned revenues	266)	286)	254)	318)	247)
After Adjustment
Adjusted current liabilities	18,606)	16,892)	15,077)	13,076)	10,682)

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).

A consistent upward trend is observed in both current liabilities and adjusted current liabilities between 2019 and 2023. Current liabilities grew from 10,929 million US dollars in 2019 to 18,872 million US dollars in 2023, representing a total increase of approximately 72.7% over the five-year period. Adjusted current liabilities followed a near-identical trajectory, rising from 10,682 million US dollars to 18,606 million US dollars in the same timeframe.

Liability Growth Pattern: The year-over-year growth rate for current liabilities peaked in 2020 with an increase of approximately 22.5%, followed by a gradual deceleration in growth rates through 2023, where the annual increase moderated to approximately 9.8%.
Adjustment Magnitude and Stability: The variance between reported current liabilities and adjusted current liabilities remained relatively stable throughout the period. The absolute difference ranged from a minimum of 247 million US dollars in 2019 to a maximum of 318 million US dollars in 2020, suggesting a consistent application of adjustment criteria over the observed years.
Relative Adjustment Impact: While the absolute value of the adjustments remained stable, the relative impact of these adjustments as a percentage of total current liabilities decreased over time. The adjustment represented approximately 2.26% of current liabilities in 2019, declining to approximately 1.41% by 2023.

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Humana Inc., adjusted total liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Total liabilities	30,747)	27,685)	28,255)	21,241)	17,037)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Less: Deferred income tax liabilities (classified as Other long-term liabilities)²	—)	27)	698)	659)	341)
Less: Unearned revenues	266)	286)	254)	318)	247)
After Adjustment
Adjusted total liabilities	30,481)	27,372)	27,303)	20,264)	16,449)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Deferred income tax liabilities (classified as Other long-term liabilities). See details »

A consistent upward trajectory in both total and adjusted liabilities is observed over the five-year period from 2019 to 2023. Total liabilities increased from 17,037 million USD in 2019 to 30,747 million USD by 2023, representing a substantial growth in the organization's obligations. Adjusted total liabilities followed a nearly identical path, rising from 16,449 million USD to 30,481 million USD over the same interval.

Liability Growth Trends: The most significant acceleration in liabilities occurred between 2020 and 2021, during which total liabilities rose from 21,241 million USD to 28,255 million USD. A brief period of stabilization was noted in 2022, where liabilities saw a slight decrease to 27,685 million USD, before continuing the growth trend in 2023.
Adjustment Variance Analysis: The variance between total and adjusted liabilities fluctuated throughout the period. The gap widened from 588 million USD in 2019 to a peak of 977 million USD in 2020 and remained high at 952 million USD in 2021. Subsequently, this variance contracted significantly, dropping to 313 million USD in 2022 and further to 266 million USD in 2023.
Convergence of Financial Metrics: A clear trend of convergence is observable between the total and adjusted liability figures in the latter two years of the analysis. By 2023, the adjustment represents a smaller percentage of the total liability balance than in previous years, indicating that the factors necessitating the adjustment have diminished in relative scale.

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Humana Inc., adjusted stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Stockholders’ equity	16,262)	15,311)	16,080)	13,728)	12,037)
Adjustments
Less: Net deferred income tax assets (liabilities)¹	48)	(27)	(698)	(659)	(341)
Add: Allowance for doubtful accounts	88)	70)	83)	72)	69)
Add: Unearned revenues	266)	286)	254)	318)	247)
Add: Noncontrolling interests	56)	59)	23)	—)	—)
After Adjustment
Adjusted total equity	16,624)	15,753)	17,138)	14,777)	12,694)

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).

¹ Net deferred income tax assets (liabilities). See details »

An analysis of the equity position from 2019 through 2023 reveals a general upward trajectory characterized by significant growth in the early period, a temporary contraction in 2022, and a subsequent recovery in 2023.

Equity Growth Trends: Stockholders' equity increased from 12,037 million USD in 2019 to 16,080 million USD in 2021, representing a substantial cumulative increase over a two-year period. A reversal occurred in 2022, where equity declined to 15,311 million USD, before rebounding to 16,262 million USD by the end of 2023.
Adjusted Total Equity Performance: Adjusted total equity followed a similar directional pattern, rising from 12,694 million USD in 2019 to a peak of 17,138 million USD in 2021. This metric also experienced a decline in 2022 to 15,753 million USD, followed by a recovery to 16,624 million USD in 2023.
Analysis of Equity Adjustments: The variance between reported stockholders' equity and adjusted total equity expanded during the initial growth phase, peaking in 2021 with a difference of 1,058 million USD. Following this peak, the adjustment gap narrowed significantly, decreasing to 442 million USD in 2022 and further to 362 million USD in 2023, suggesting a convergence between reported and adjusted equity figures in recent years.

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Humana Inc., adjusted capitalization table

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Book overdraft	353)	298)	326)	320)	225)
Short-term debt	1,443)	2,092)	1,953)	600)	699)
Long-term debt	10,213)	9,034)	10,541)	6,060)	4,967)
Total reported debt	12,009)	11,424)	12,820)	6,980)	5,891)
Stockholders’ equity	16,262)	15,311)	16,080)	13,728)	12,037)
Total reported capital	28,271)	26,735)	28,900)	20,708)	17,928)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Add: Operating lease liabilities (included within Trade accounts payable and accrued expenses)²	149)	152)	185)	129)	116)
Add: Operating lease liabilities (included within Other long-term liabilities)³	444)	456)	546)	355)	332)
Adjusted total debt	12,602)	12,032)	13,551)	7,464)	6,339)
Adjustments to Equity
Less: Net deferred income tax assets (liabilities)⁴	48)	(27)	(698)	(659)	(341)
Add: Allowance for doubtful accounts	88)	70)	83)	72)	69)
Add: Unearned revenues	266)	286)	254)	318)	247)
Add: Noncontrolling interests	56)	59)	23)	—)	—)
Adjusted total equity	16,624)	15,753)	17,138)	14,777)	12,694)
After Adjustment
Adjusted total capital	29,226)	27,785)	30,689)	22,241)	19,033)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Operating lease liabilities (included within Trade accounts payable and accrued expenses). See details »

³ Operating lease liabilities (included within Other long-term liabilities). See details »

⁴ Net deferred income tax assets (liabilities). See details »

The capitalization structure exhibits a significant expansion between 2019 and 2023, characterized by a substantial increase in both debt and equity components. The most pronounced growth occurred during the 2021 fiscal year, followed by a period of relative stabilization and modest fluctuations in 2022 and 2023.

Debt Obligations and Trends: Total reported debt increased from US$ 5,891 million in 2019 to US$ 12,009 million in 2023. A sharp escalation is observed between 2020 and 2021, where debt levels rose by approximately 83.7%. While a reduction to US$ 11,424 million occurred in 2022, the balance returned to an upward trajectory in 2023.
Equity Growth and Stability: Stockholders' equity demonstrated a general upward trend, rising from US$ 12,037 million in 2019 to US$ 16,262 million in 2023. A temporary contraction was noted in 2022, with equity decreasing to US$ 15,311 million from the 2021 peak of US$ 16,080 million, before recovering in the final year of the period.
Impact of Capitalization Adjustments: A consistent positive variance is maintained between reported and adjusted financial figures. Adjusted total debt remains higher than reported debt across all periods, as does adjusted total equity relative to reported equity. This indicates the systematic inclusion of additional liabilities and equity components in the adjusted calculations. Adjusted total capital peaked in 2021 at US$ 30,689 million, compared to the reported total capital of US$ 28,900 million for the same year.
Overall Capitalization Pattern: Total reported capital grew from US$ 17,928 million in 2019 to US$ 28,271 million in 2023. Adjusted total capital followed a similar trajectory, increasing from US$ 19,033 million to US$ 29,226 million. The volatility observed between 2021 and 2022 reflects a period of significant capital shifts, though the overall trend remains one of expansion in the organization's total financial base.

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Humana Inc., adjusted external revenues

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
External revenues	105,305)	92,488)	82,877)	76,001)	64,387)
Adjustment
Add: Increase (decrease) in unearned revenues	(20)	32)	(64)	71)	(36)
After Adjustment
Adjusted external revenues	105,285)	92,520)	82,813)	76,072)	64,351)

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).

A consistent and strong upward trend in revenue is observed from 2019 through 2023. External revenues grew from US$ 64,387 million to US$ 105,305 million, reflecting a sustained expansion of the company's top-line earnings over the five-year period.

Revenue Growth Trajectory: The growth in external revenues was most pronounced between 2019 and 2020, with an increase of approximately 18%. This was followed by steady gains in subsequent years, with the growth rate accelerating again in 2022 and 2023, culminating in a total increase of approximately 63.5% over the entire period analyzed.
Impact of Revenue Adjustments: Adjusted external revenues mirror the movements of external revenues with high precision. The variance between reported and adjusted figures remains immaterial relative to the total scale of operations. For instance, in 2023, the difference was only US$ 20 million against a total revenue base exceeding US$ 105 billion, indicating that adjustments have no significant impact on the overall financial narrative.
Adjustment Patterns: The adjustments exhibit a non-linear pattern, fluctuating between slight positive and negative offsets. Because these variances are negligible in proportion to total revenues, it is inferred that the adjustments relate to minor accounting reclassifications or non-recurring items rather than systemic changes in revenue streams or recognition policies.

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Humana Inc., adjusted net income attributable to Humana

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)
Adjustments
Add: Deferred income tax expense (benefit)¹	(164)	(100)	15)	195)	162)
Add: Increase (decrease) in allowance for doubtful accounts	18)	(13)	11)	3)	(10)
Add: Increase (decrease) in unearned revenues	(20)	32)	(64)	71)	(36)
Add: Other comprehensive income (loss), net of tax	305)	(1,346)	(349)	235)	315)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest	(5)	(4)	1)	—)	—)
After Adjustment
Adjusted net income	2,623)	1,375)	2,547)	3,871)	3,138)

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).

¹ Deferred income tax expense (benefit). See details »

An analysis of the financial results between 2019 and 2023 reveals a divergence in the trajectories of reported net income and adjusted net income. While reported net income shows a steady decline following a peak in 2020, adjusted net income exhibits significant volatility, characterized by a severe contraction followed by a partial recovery.

Reported Net Income Trends: Net income attributable to Humana grew from US$ 2,707 million in 2019 to a peak of US$ 3,367 million in 2020. Following this peak, a consistent downward trend is observed over the subsequent three years, with income falling to US$ 2,933 million in 2021, US$ 2,806 million in 2022, and reaching a period low of US$ 2,489 million in 2023.
Adjusted Net Income Volatility: Adjusted net income demonstrated higher variance than reported net income. After reaching a high of US$ 3,871 million in 2020, the figure declined sharply to US$ 2,547 million in 2021 and further collapsed to US$ 1,375 million in 2022. A significant reversal occurred in 2023, where adjusted net income recovered to US$ 2,623 million.
Comparative Analysis of Adjustments: The relationship between reported and adjusted figures shifted across three distinct phases. During 2019 and 2020, adjusted net income remained higher than reported net income, indicating positive adjustments to the bottom line. Between 2021 and 2022, this relationship inverted, with adjusted net income falling below reported net income, most notably in 2022 when adjusted figures were less than half of the reported net income. By 2023, the trend returned to the initial pattern, with adjusted net income again exceeding reported net income.

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