Name: Humana Inc. (NYSE:HUM) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Humana Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Benefits payable	10,241)	9,264)	8,289)	8,143)	6,004)
Trade accounts payable and accrued expenses	6,569)	5,238)	4,509)	4,013)	3,754)
Book overdraft	353)	298)	326)	320)	225)
Unearned revenues	266)	286)	254)	318)	247)
Short-term debt	1,443)	2,092)	1,953)	600)	699)
Current liabilities	18,872)	17,178)	15,331)	13,394)	10,929)
Long-term debt	10,213)	9,034)	10,541)	6,060)	4,967)
Other long-term liabilities	1,662)	1,473)	2,383)	1,787)	1,141)
Long-term liabilities	11,875)	10,507)	12,924)	7,847)	6,108)
Total liabilities	30,747)	27,685)	28,255)	21,241)	17,037)
Preferred stock, $1 par; none issued	—)	—)	—)	—)	—)
Common stock, $0.16 2/3 par	33)	33)	33)	33)	33)
Capital in excess of par value	3,346)	3,246)	3,082)	2,705)	2,820)
Retained earnings	27,540)	25,492)	23,086)	20,517)	17,483)
Accumulated other comprehensive income (loss)	(999)	(1,304)	42)	391)	156)
Treasury stock, at cost	(13,658)	(12,156)	(10,163)	(9,918)	(8,455)
Stockholders’ equity	16,262)	15,311)	16,080)	13,728)	12,037)
Noncontrolling interests	56)	59)	23)	—)	—)
Total equity	16,318)	15,370)	16,103)	13,728)	12,037)
Total liabilities and equity	47,065)	43,055)	44,358)	34,969)	29,074)

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).

The balance sheet reflects a significant expansion in both total liabilities and total equity from 2019 to 2023, with total liabilities and equity increasing from 29,074 million USD to 47,065 million USD. This growth is characterized by a substantial increase in operational obligations and a strategic approach to capital management through share repurchases.

Liability Structure and Trends: Total liabilities grew from 17,037 million USD in 2019 to 30,747 million USD in 2023. This increase was primarily driven by a steady rise in current liabilities, which climbed from 10,929 million USD to 18,872 million USD. A critical component of this growth is benefits payable, which rose from 6,004 million USD to 10,241 million USD, suggesting an increase in the scale of insurance obligations. Additionally, trade accounts payable and accrued expenses saw a marked increase, nearly doubling from 3,754 million USD to 6,569 million USD over the five-year period.; Long-term debt exhibited a sharp increase between 2019 and 2021, rising from 4,967 million USD to 10,541 million USD. While it fluctuated slightly thereafter, it remained elevated at 10,213 million USD by the end of 2023, indicating a shift toward a more leveraged long-term capital structure compared to the 2019 baseline.
Equity and Capital Management: Total equity grew from 12,037 million USD in 2019 to 16,318 million USD in 2023. The primary driver of equity growth was retained earnings, which increased consistently from 17,483 million USD to 27,540 million USD, reflecting sustained profitability and the retention of earnings for reinvestment or debt coverage.; A significant offset to the growth in retained earnings is observed in treasury stock. The cost of treasury stock increased from 8,455 million USD to 13,658 million USD, indicating an aggressive and consistent program of share buybacks. This strategy has effectively limited the overall growth of stockholders' equity despite strong earnings retention.; Accumulated other comprehensive income experienced volatility, shifting from a positive 156 million USD in 2019 to a deficit of 999 million USD in 2023, with a notable peak loss of 1,304 million USD in 2022.
Solvency and Leverage Insights: The ratio of total liabilities to total equity has increased over the analyzed period. In 2019, total liabilities were approximately 1.41 times total equity; by 2023, this ratio rose to approximately 1.88. This indicates a trend toward higher financial leverage.; The composition of liabilities has shifted toward short-term operational obligations, as current liabilities now represent a larger portion of the total liability profile than they did in 2019, emphasizing a growing reliance on short-term financing and accrued benefit obligations.

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