Operating Profit Margin
since 2005
Calculation
Humana Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | External revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 3.81% | = | 100 | × | 4,013) | ÷ | 105,305) |
| Dec 31, 2022 | 4.11% | = | 100 | × | 3,800) | ÷ | 92,488) |
| Dec 31, 2021 | 3.80% | = | 100 | × | 3,148) | ÷ | 82,877) |
| Dec 31, 2020 | 6.56% | = | 100 | × | 4,986) | ÷ | 76,001) |
| Dec 31, 2019 | 4.96% | = | 100 | × | 3,192) | ÷ | 64,387) |
| Dec 31, 2018 | 5.50% | = | 100 | × | 3,100) | ÷ | 56,398) |
| Dec 31, 2017 | 7.99% | = | 100 | × | 4,262) | ÷ | 53,362) |
| Dec 31, 2016 | 3.22% | = | 100 | × | 1,741) | ÷ | 53,990) |
| Dec 31, 2015 | 4.36% | = | 100 | × | 2,347) | ÷ | 53,815) |
| Dec 31, 2014 | 4.91% | = | 100 | × | 2,362) | ÷ | 48,123) |
| Dec 31, 2013 | 5.03% | = | 100 | × | 2,061) | ÷ | 40,938) |
| Dec 31, 2012 | 5.20% | = | 100 | × | 2,016) | ÷ | 38,735) |
| Dec 31, 2011 | 6.43% | = | 100 | × | 2,344) | ÷ | 36,466) |
| Dec 31, 2010 | 5.53% | = | 100 | × | 1,855) | ÷ | 33,539) |
| Dec 31, 2009 | 5.57% | = | 100 | × | 1,708) | ÷ | 30,664) |
| Dec 31, 2008 | 3.74% | = | 100 | × | 1,073) | ÷ | 28,726) |
| Dec 31, 2007 | 5.44% | = | 100 | × | 1,358) | ÷ | 24,976) |
| Dec 31, 2006 | 3.91% | = | 100 | × | 825) | ÷ | 21,125) |
| Dec 31, 2005 | 3.23% | = | 100 | × | 461) | ÷ | 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
Between 2005 and 2023, a consistent and substantial increase in external revenues is observed, growing from 14,275 million USD to 105,305 million USD. While income from operations also trended upward over the long term, the operating profit margin exhibited significant volatility, failing to maintain a linear growth pattern in alignment with revenue expansion.
- Revenue Growth Trajectory
- External revenues demonstrated an uninterrupted annual increase for nearly the entire period. The growth was particularly aggressive after 2014, with revenues expanding from 48,123 million USD in 2014 to over 105 billion USD by 2023, indicating a massive scaling of the business volume.
- Operating Profit Margin Fluctuations
- The operating profit margin experienced three distinct phases. From 2005 to 2011, the margin generally improved, rising from 3.23% to a peak of 6.43%. This was followed by a period of contraction between 2012 and 2016, where the margin declined to 3.22%. A sharp, anomalous spike occurred in 2017, reaching a historical maximum of 7.99%, before trending downward again over the subsequent six years.
- Operating Income Analysis
- Income from operations grew from 461 million USD in 2005 to 4,013 million USD in 2023. However, the relationship between revenue and operating income suggests diminishing marginal returns in efficiency. For instance, while revenue increased by approximately 7.4 times between 2005 and 2023, the operating profit margin ended the period at 3.81%, which is only slightly higher than the 3.23% recorded in 2005.
- Recent Performance Trends
- A downward trend in operational efficiency is evident from 2020 to 2023. Despite operating income reaching a peak of 4,986 million USD in 2020, the operating profit margin fell from 6.56% in 2020 to 3.81% in 2023, signaling that operating expenses grew at a faster rate than external revenues during this final window.
The overall financial trajectory is characterized by aggressive top-line growth paired with inconsistent operational efficiency. The inability to sustain the margin peaks seen in 2011 and 2017 suggests that the costs associated with scaling revenues have placed significant pressure on the operating profit margin in recent years.
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Comparison to Competitors
Humana Inc., operating profit margin, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 3.81% | 16.15% | 24.80% | 17.56% | 8.80% |
| Dec 31, 2022 | 4.11% | 19.16% | 25.35% | 18.15% | 8.83% |
| Dec 31, 2021 | 3.80% | 19.56% | 31.89% | 14.89% | 8.40% |
| Dec 31, 2020 | 6.56% | 15.48% | 24.09% | 16.57% | 8.76% |
| Dec 31, 2019 | 4.96% | 14.21% | 30.69% | 20.51% | 8.19% |
| Dec 31, 2018 | 5.50% | 11.94% | 32.21% | 22.20% | 7.71% |
| Dec 31, 2017 | 7.99% | 6.30% | 33.71% | 17.94% | 7.60% |
| Dec 31, 2016 | 3.22% | 15.27% | 34.95% | 18.35% | 7.03% |
| Dec 31, 2015 | 4.36% | 14.05% | 31.04% | 18.59% | 7.05% |
| Dec 31, 2014 | 4.91% | 12.84% | 25.56% | 22.42% | 7.92% |
| Dec 31, 2013 | 5.03% | 12.03% | 37.64% | 26.53% | 7.90% |
| Dec 31, 2012 | 5.20% | 20.28% | 40.30% | 0.00% | 8.42% |
| Dec 31, 2011 | 6.43% | 14.81% | 39.54% | 0.00% | 8.36% |
| Dec 31, 2010 | 5.53% | 17.31% | 39.29% | 0.00% | 8.41% |
| Dec 31, 2009 | 5.57% | 20.27% | 35.87% | 0.00% | 7.35% |
| Dec 31, 2008 | 3.74% | 19.28% | 35.53% | 0.00% | 6.54% |
| Dec 31, 2007 | 5.44% | 17.67% | 34.41% | 0.00% | 10.57% |
| Dec 31, 2006 | 3.91% | 9.09% | 28.81% | 0.00% | 9.88% |
| Dec 31, 2005 | 3.23% | 19.53% | 30.25% | 0.00% | 11.98% |
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).