Name: Humana Inc. (NYSE:HUM) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Humana Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Premiums	101,272)	87,712)	79,822)	74,186)	62,948)
Services	4,033)	4,776)	3,055)	1,815)	1,439)
External revenues	105,305)	92,488)	82,877)	76,001)	64,387)
Investment income	1,069)	382)	187)	1,154)	501)
Benefits	(88,394)	(75,690)	(69,199)	(61,628)	(53,857)
Operating costs	(13,188)	(12,671)	(10,121)	(10,052)	(7,381)
Depreciation and amortization	(779)	(709)	(596)	(489)	(458)
Operating expenses	(102,361)	(89,070)	(79,916)	(72,169)	(61,696)
Income from operations	4,013)	3,800)	3,148)	4,986)	3,192)
Gain on sale of Gentiva Hospice	—)	237)	—)	—)	—)
Interest expense	(493)	(401)	(326)	(283)	(242)
Other income (expense), net	(137)	(68)	532)	(103)	506)
Income before income taxes and equity in net earnings (losses)	3,383)	3,568)	3,354)	4,600)	3,456)
Provision for income taxes	(836)	(762)	(485)	(1,307)	(763)
Equity in net earnings (losses)	(63)	(4)	65)	74)	14)
Net income	2,484)	2,802)	2,934)	3,367)	2,707)
Net (income) loss attributable to noncontrolling interests	5)	4)	(1)	—)	—)
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)

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).

Between 2019 and 2023, a consistent upward trend in top-line growth was observed, though this expansion did not translate into proportional net income growth. External revenues increased from US$ 64,387 million to US$ 105,305 million, driven primarily by a steady rise in premiums, which grew from US$ 62,948 million to US$ 101,272 million over the period. Despite this substantial increase in revenue, net income attributable to Humana peaked in 2020 at US$ 3,367 million and declined steadily thereafter to US$ 2,489 million by the end of 2023.

Revenue Streams and Investment Performance: External revenue growth was sustained throughout the five-year period, with premiums serving as the primary driver. Service revenues experienced growth until 2022, peaking at US$ 4,776 million before declining to US$ 4,033 million in 2023. Investment income proved volatile, characterized by sharp fluctuations, including a dip to US$ 187 million in 2021 and a subsequent recovery to US$ 1,069 million in 2023.
Operating Expense Trajectory: Operating expenses grew in tandem with revenues, increasing from US$ 61,696 million in 2019 to US$ 102,361 million in 2023. Benefit payments, the largest cost driver, rose from US$ 53,857 million to US$ 88,394 million. A notable increase was observed in operating costs, which climbed from US$ 7,381 million in 2019 to US$ 13,188 million in 2023, indicating that operational overhead grew at a faster rate than the overall revenue expansion.
Profitability and Margin Compression: Income from operations reached a high of US$ 4,986 million in 2020 but retracted to US$ 4,013 million by 2023. The compression of the bottom line is further highlighted by the doubling of interest expenses, which rose from US$ 242 million in 2019 to US$ 493 million in 2023. Additionally, equity in net earnings shifted from a positive contribution of US$ 14 million in 2019 to a loss of US$ 63 million in 2023, contributing to the overall decline in net income.

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