Return on Assets (ROA)
since 2005
Calculation
Humana Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Humana1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 5.29% | = | 100 | × | 2,489) | ÷ | 47,065) |
| Dec 31, 2022 | 6.52% | = | 100 | × | 2,806) | ÷ | 43,055) |
| Dec 31, 2021 | 6.61% | = | 100 | × | 2,933) | ÷ | 44,358) |
| Dec 31, 2020 | 9.63% | = | 100 | × | 3,367) | ÷ | 34,969) |
| Dec 31, 2019 | 9.31% | = | 100 | × | 2,707) | ÷ | 29,074) |
| Dec 31, 2018 | 6.62% | = | 100 | × | 1,683) | ÷ | 25,413) |
| Dec 31, 2017 | 9.01% | = | 100 | × | 2,448) | ÷ | 27,178) |
| Dec 31, 2016 | 2.42% | = | 100 | × | 614) | ÷ | 25,396) |
| Dec 31, 2015 | 5.16% | = | 100 | × | 1,276) | ÷ | 24,705) |
| Dec 31, 2014 | 4.89% | = | 100 | × | 1,147) | ÷ | 23,466) |
| Dec 31, 2013 | 5.94% | = | 100 | × | 1,231) | ÷ | 20,735) |
| Dec 31, 2012 | 6.12% | = | 100 | × | 1,222) | ÷ | 19,979) |
| Dec 31, 2011 | 8.01% | = | 100 | × | 1,419) | ÷ | 17,708) |
| Dec 31, 2010 | 6.83% | = | 100 | × | 1,099) | ÷ | 16,103) |
| Dec 31, 2009 | 7.35% | = | 100 | × | 1,040) | ÷ | 14,153) |
| Dec 31, 2008 | 4.96% | = | 100 | × | 647) | ÷ | 13,042) |
| Dec 31, 2007 | 6.47% | = | 100 | × | 834) | ÷ | 12,879) |
| Dec 31, 2006 | 4.81% | = | 100 | × | 487) | ÷ | 10,127) |
| Dec 31, 2005 | 4.49% | = | 100 | × | 308) | ÷ | 6,870) |
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
Humana Inc. demonstrated significant expansion in its total asset base and net income between 2005 and 2023, although the efficiency of these assets in generating profit fluctuated through several distinct cycles.
- Asset Base Expansion
- Total assets grew consistently from US$ 6,870 million in 2005 to US$ 47,065 million by 2023. This represents a substantial increase in the scale of the organization's operations, with the growth remaining nearly uninterrupted except for a minor contraction in 2018.
- Net Income Trends
- Net income attributable to the company exhibited a general long-term upward trajectory, rising from US$ 308 million in 2005 to US$ 2,489 million in 2023. A notable period of volatility occurred between 2016 and 2017, during which net income dropped to a mid-period low of US$ 614 million before surging to US$ 2,448 million the following year. The absolute peak in profitability was reached in 2020 with net income of US$ 3,367 million.
- Return on Assets (ROA) Analysis
- The ROA experienced three primary phases of performance. An initial growth phase occurred from 2005 to 2011, where the ratio rose from 4.49% to a peak of 8.01%. This was followed by a period of decline between 2012 and 2016, reaching a low of 2.42%. A strong recovery phase ensued from 2017 to 2020, with ROA reaching its highest level of 9.63%. Since 2020, a consistent downward trend has emerged, with the ratio falling to 5.29% by the end of 2023.
The recent divergence between the continuing growth of total assets and the decline in net income since 2020 has resulted in a compressed ROA. This indicates a reduction in the company's ability to convert its expanding asset base into proportional bottom-line growth in the most recent three-year period.
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Comparison to Competitors
Humana Inc., ROA, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 5.29% | 7.82% | 5.50% | 11.64% | 4.13% | 8.18% |
| Dec 31, 2022 | 6.52% | 9.31% | 5.86% | 10.19% | 5.54% | 8.19% |
| Dec 31, 2021 | 6.61% | 9.40% | 6.26% | 12.58% | 3.87% | 8.15% |
| Dec 31, 2020 | 9.63% | 6.20% | 5.28% | 9.50% | 5.28% | 7.81% |
| Dec 31, 2019 | 9.31% | 5.43% | 6.21% | 14.17% | 5.16% | 7.96% |
| Dec 31, 2018 | 6.62% | 3.53% | 5.24% | 14.37% | 3.40% | 7.87% |
| Dec 31, 2017 | 9.01% | 0.63% | 5.45% | 11.46% | 4.04% | 7.59% |
| Dec 31, 2016 | 2.42% | 2.66% | 3.79% | 11.34% | 3.55% | 5.71% |
| Dec 31, 2015 | 5.16% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Dec 31, 2014 | 4.89% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Dec 31, 2013 | 5.94% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Dec 31, 2012 | 6.12% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Dec 31, 2011 | 8.01% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Dec 31, 2010 | 6.83% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Dec 31, 2009 | 7.35% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Dec 31, 2008 | 4.96% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Dec 31, 2007 | 6.47% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Dec 31, 2006 | 4.81% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Dec 31, 2005 | 4.49% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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).
Comparison to Sector (Health Care Equipment & Services)
Humana Inc., ROA, long-term trends, comparison to sector (health care equipment & services)
| Humana Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2023 | 5.29% | 7.05% |
| Dec 31, 2022 | 6.52% | 7.49% |
| Dec 31, 2021 | 6.61% | 7.28% |
| Dec 31, 2020 | 9.63% | 6.62% |
| Dec 31, 2019 | 9.31% | 6.77% |
| Dec 31, 2018 | 6.62% | 5.72% |
| Dec 31, 2017 | 9.01% | 5.00% |
| Dec 31, 2016 | 2.42% | 4.37% |
| Dec 31, 2015 | 5.16% | 4.93% |
| Dec 31, 2014 | 4.89% | 6.03% |
| Dec 31, 2013 | 5.94% | 6.64% |
| Dec 31, 2012 | 6.12% | 7.54% |
| Dec 31, 2011 | 8.01% | 7.54% |
| Dec 31, 2010 | 6.83% | 7.69% |
| Dec 31, 2009 | 7.35% | 8.84% |
| Dec 31, 2008 | 4.96% | 7.51% |
| Dec 31, 2007 | 6.47% | 8.92% |
| Dec 31, 2006 | 4.81% | 7.40% |
| Dec 31, 2005 | 4.49% | 7.94% |
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., ROA, long-term trends, comparison to industry (health care)
| Humana Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 5.29% | 7.19% |
| Dec 31, 2022 | 6.52% | 9.66% |
| Dec 31, 2021 | 6.61% | 9.46% |
| Dec 31, 2020 | 9.63% | 5.81% |
| Dec 31, 2019 | 9.31% | 8.32% |
| Dec 31, 2018 | 6.62% | 7.90% |
| Dec 31, 2017 | 9.01% | 5.19% |
| Dec 31, 2016 | 2.42% | 7.31% |
| Dec 31, 2015 | 5.16% | 7.71% |
| Dec 31, 2014 | 4.89% | 8.59% |
| Dec 31, 2013 | 5.94% | 8.76% |
| Dec 31, 2012 | 6.12% | 8.09% |
| Dec 31, 2011 | 8.01% | 7.36% |
| Dec 31, 2010 | 6.83% | 7.24% |
| Dec 31, 2009 | 7.35% | 9.73% |
| Dec 31, 2008 | 4.96% | 9.50% |
| Dec 31, 2007 | 6.47% | 8.88% |
| Dec 31, 2006 | 4.81% | 10.52% |
| Dec 31, 2005 | 4.49% | 9.67% |
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).