Net Profit Margin
since 2005
Calculation
Humana Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Humana1 | ÷ | External revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 2.36% | = | 100 | × | 2,489) | ÷ | 105,305) |
| Dec 31, 2022 | 3.03% | = | 100 | × | 2,806) | ÷ | 92,488) |
| Dec 31, 2021 | 3.54% | = | 100 | × | 2,933) | ÷ | 82,877) |
| Dec 31, 2020 | 4.43% | = | 100 | × | 3,367) | ÷ | 76,001) |
| Dec 31, 2019 | 4.20% | = | 100 | × | 2,707) | ÷ | 64,387) |
| Dec 31, 2018 | 2.98% | = | 100 | × | 1,683) | ÷ | 56,398) |
| Dec 31, 2017 | 4.59% | = | 100 | × | 2,448) | ÷ | 53,362) |
| Dec 31, 2016 | 1.14% | = | 100 | × | 614) | ÷ | 53,990) |
| Dec 31, 2015 | 2.37% | = | 100 | × | 1,276) | ÷ | 53,815) |
| Dec 31, 2014 | 2.38% | = | 100 | × | 1,147) | ÷ | 48,123) |
| Dec 31, 2013 | 3.01% | = | 100 | × | 1,231) | ÷ | 40,938) |
| Dec 31, 2012 | 3.15% | = | 100 | × | 1,222) | ÷ | 38,735) |
| Dec 31, 2011 | 3.89% | = | 100 | × | 1,419) | ÷ | 36,466) |
| Dec 31, 2010 | 3.28% | = | 100 | × | 1,099) | ÷ | 33,539) |
| Dec 31, 2009 | 3.39% | = | 100 | × | 1,040) | ÷ | 30,664) |
| Dec 31, 2008 | 2.25% | = | 100 | × | 647) | ÷ | 28,726) |
| Dec 31, 2007 | 3.34% | = | 100 | × | 834) | ÷ | 24,976) |
| Dec 31, 2006 | 2.31% | = | 100 | × | 487) | ÷ | 21,125) |
| Dec 31, 2005 | 2.16% | = | 100 | × | 308) | ÷ | 14,275) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2023 is characterized by substantial growth in external revenues alongside a net profit margin that has remained relatively narrow and subject to cyclical volatility. While external revenues expanded consistently from 14,275 million USD to 105,305 million USD over the period, the net profit margin has primarily fluctuated between 1.14% and 4.59%, indicating that profitability has not scaled linearly with revenue growth.
- Revenue Growth and Scale
- A consistent upward trajectory in external revenues is observed, with the company increasing its top-line scale by more than seven-fold between 2005 and 2023. The growth remained steady through the first decade before accelerating more significantly after 2014, eventually surpassing the 100 billion USD threshold by the end of 2023.
- Net Profit Margin Volatility
- The net profit margin exhibited several distinct phases. An initial period of relative stability and gradual increase occurred between 2005 and 2011, peaking at 3.89%. This was followed by a period of compression, reaching a historical low of 1.14% in 2016. A sharp recovery occurred in 2017, with the margin jumping to 4.59%, the highest point in the recorded period. More recently, a downward trend has emerged, with the margin declining from 4.43% in 2020 to 2.36% in 2023.
- Net Income Correlation
- Net income attributable to the company generally followed the upward trend of revenues, increasing from 308 million USD in 2005 to 2,489 million USD in 2023. However, the correlation was disrupted in 2016, where net income fell to 614 million USD despite revenues remaining stable at approximately 53,990 million USD. The peak of absolute net income was reached in 2020 at 3,367 million USD, coinciding with one of the highest recorded profit margins.
- Recent Profitability Trends
- Analysis of the period from 2020 to 2023 reveals a divergence between revenue growth and profitability. Although external revenues continued to rise from 76,001 million USD to 105,305 million USD, net income decreased from 3,367 million USD to 2,489 million USD. This resulted in a contraction of the net profit margin by approximately 2.07 percentage points over three years, suggesting an increase in operating costs or a reduction in pricing power during this interval.
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Comparison to Competitors
Humana Inc., net profit margin, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 2.36% | 14.27% | 3.52% | 25.24% | 12.03% | 6.09% |
| Dec 31, 2022 | 3.03% | 15.88% | 3.87% | 21.25% | 15.90% | 6.25% |
| Dec 31, 2021 | 3.54% | 16.42% | 4.46% | 29.85% | 11.97% | 6.06% |
| Dec 31, 2020 | 4.43% | 12.99% | 3.78% | 24.33% | 16.56% | 6.03% |
| Dec 31, 2019 | 4.20% | 11.56% | 4.66% | 30.80% | 15.16% | 5.76% |
| Dec 31, 2018 | 2.98% | 7.74% | 4.11% | 30.29% | 10.36% | 5.33% |
| Dec 31, 2017 | 4.59% | 1.74% | 4.31% | 21.09% | 13.56% | 5.28% |
| Dec 31, 2016 | 1.14% | 6.71% | 2.93% | 27.21% | 12.27% | 3.81% |
| Dec 31, 2015 | 2.37% | 21.68% | 3.27% | 24.69% | 13.20% | 3.72% |
| Dec 31, 2014 | 2.38% | 11.28% | 3.52% | 19.65% | 18.02% | 4.33% |
| Dec 31, 2013 | 3.01% | 11.79% | 3.55% | 29.62% | 20.90% | 4.62% |
| Dec 31, 2012 | 3.15% | 14.95% | 4.37% | 30.14% | 22.35% | 5.03% |
| Dec 31, 2011 | 3.89% | 12.17% | 4.42% | 28.17% | 19.43% | 5.08% |
| Dec 31, 2010 | 3.28% | 13.15% | 4.99% | 27.02% | 19.59% | 4.95% |
| Dec 31, 2009 | 3.39% | 18.68% | 7.80% | 22.11% | 14.86% | 4.42% |
| Dec 31, 2008 | 2.25% | 16.53% | 4.04% | 23.35% | 16.51% | 3.70% |
| Dec 31, 2007 | 3.34% | 13.92% | 5.56% | 24.06% | 22.78% | 6.26% |
| Dec 31, 2006 | 2.31% | 7.64% | 5.52% | 19.33% | 22.55% | 5.89% |
| Dec 31, 2005 | 2.16% | 15.10% | 5.53% | 41.41% | 17.94% | 7.36% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Humana Inc., net profit margin, long-term trends, comparison to sector (health care equipment & services)
| Humana Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2023 | 2.36% | 6.43% |
| Dec 31, 2022 | 3.03% | 7.05% |
| Dec 31, 2021 | 3.54% | 7.14% |
| Dec 31, 2020 | 4.43% | 6.82% |
| Dec 31, 2019 | 4.20% | 6.91% |
| Dec 31, 2018 | 2.98% | 5.87% |
| Dec 31, 2017 | 4.59% | 5.60% |
| Dec 31, 2016 | 1.14% | 4.73% |
| Dec 31, 2015 | 2.37% | 5.78% |
| Dec 31, 2014 | 2.38% | 5.76% |
| Dec 31, 2013 | 3.01% | 6.37% |
| Dec 31, 2012 | 3.15% | 8.05% |
| Dec 31, 2011 | 3.89% | 7.40% |
| Dec 31, 2010 | 3.28% | 7.67% |
| Dec 31, 2009 | 3.39% | 8.63% |
| Dec 31, 2008 | 2.25% | 6.88% |
| Dec 31, 2007 | 3.34% | 8.40% |
| Dec 31, 2006 | 2.31% | 7.20% |
| Dec 31, 2005 | 2.16% | 9.04% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Humana Inc., net profit margin, long-term trends, comparison to industry (health care)
| Humana Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 2.36% | 11.49% |
| Dec 31, 2022 | 3.03% | 14.65% |
| Dec 31, 2021 | 3.54% | 15.24% |
| Dec 31, 2020 | 4.43% | 10.27% |
| Dec 31, 2019 | 4.20% | 14.56% |
| Dec 31, 2018 | 2.98% | 12.61% |
| Dec 31, 2017 | 4.59% | 9.26% |
| Dec 31, 2016 | 1.14% | 12.80% |
| Dec 31, 2015 | 2.37% | 13.94% |
| Dec 31, 2014 | 2.38% | 14.40% |
| Dec 31, 2013 | 3.01% | 15.04% |
| Dec 31, 2012 | 3.15% | 13.92% |
| Dec 31, 2011 | 3.89% | 12.06% |
| Dec 31, 2010 | 3.28% | 11.90% |
| Dec 31, 2009 | 3.39% | 17.77% |
| Dec 31, 2008 | 2.25% | 13.00% |
| Dec 31, 2007 | 3.34% | 12.52% |
| Dec 31, 2006 | 2.31% | 15.30% |
| Dec 31, 2005 | 2.16% | 14.61% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).