Return on Equity (ROE)
since 2005
Calculation
Humana Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Humana1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 15.31% | = | 100 | × | 2,489) | ÷ | 16,262) |
| Dec 31, 2022 | 18.33% | = | 100 | × | 2,806) | ÷ | 15,311) |
| Dec 31, 2021 | 18.24% | = | 100 | × | 2,933) | ÷ | 16,080) |
| Dec 31, 2020 | 24.53% | = | 100 | × | 3,367) | ÷ | 13,728) |
| Dec 31, 2019 | 22.49% | = | 100 | × | 2,707) | ÷ | 12,037) |
| Dec 31, 2018 | 16.56% | = | 100 | × | 1,683) | ÷ | 10,161) |
| Dec 31, 2017 | 24.87% | = | 100 | × | 2,448) | ÷ | 9,842) |
| Dec 31, 2016 | 5.75% | = | 100 | × | 614) | ÷ | 10,685) |
| Dec 31, 2015 | 12.33% | = | 100 | × | 1,276) | ÷ | 10,346) |
| Dec 31, 2014 | 11.89% | = | 100 | × | 1,147) | ÷ | 9,646) |
| Dec 31, 2013 | 13.21% | = | 100 | × | 1,231) | ÷ | 9,316) |
| Dec 31, 2012 | 13.81% | = | 100 | × | 1,222) | ÷ | 8,847) |
| Dec 31, 2011 | 17.60% | = | 100 | × | 1,419) | ÷ | 8,063) |
| Dec 31, 2010 | 15.88% | = | 100 | × | 1,099) | ÷ | 6,924) |
| Dec 31, 2009 | 18.00% | = | 100 | × | 1,040) | ÷ | 5,776) |
| Dec 31, 2008 | 14.52% | = | 100 | × | 647) | ÷ | 4,457) |
| Dec 31, 2007 | 20.69% | = | 100 | × | 834) | ÷ | 4,029) |
| Dec 31, 2006 | 15.96% | = | 100 | × | 487) | ÷ | 3,054) |
| Dec 31, 2005 | 12.47% | = | 100 | × | 308) | ÷ | 2,474) |
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 data reveals fluctuations and trends in net income, stockholders' equity, and return on equity (ROE) over the analyzed period.
- Net Income Attributable to Humana
- The net income shows an overall upward trajectory from 2005 to 2023, beginning at 308 million USD and reaching 2,489 million USD by 2023. Notable peaks occur in 2017 (2,448 million USD), 2019 (2,707 million USD), 2020 (3,367 million USD), and 2021 (3,367 million USD being the highest point before declining). The year 2016 shows a significant dip to 614 million USD, which is substantially lower compared to adjacent years, indicating an anomaly or unusual event affecting profitability. Following this dip, net income recovered strongly in subsequent years, suggesting successful measures to restore profitability.
- Stockholders’ Equity
- Stockholders' equity generally increases over time, starting at 2,474 million USD in 2005 and reaching 16,262 million USD by 2023. There are consistent increments each year, showcasing sustained growth and accumulation of equity capital. A minor decline is observed in 2017 from 10,685 million USD to 9,842 million USD, which might suggest equity repurchase, dividend distributions, or asset revaluations. Despite this, the equity base expands considerably over the period, indicating strong financial positioning and shareholder value creation.
- Return on Equity (ROE)
- ROE exhibits considerable volatility during the period observed. Early years show robust performance with ROE reaching a peak of 20.69% in 2007. However, after 2007, ROE declines to lower levels, notably dropping to 5.75% in 2016. This decline coincides with the dip in net income and the slight reduction in stockholders’ equity, highlighting a period of reduced profitability relative to equity. After 2016, ROE rebounds sharply to 24.87% in 2017, indicating a significant improvement in profitability efficiency. The years following show fluctuations but remain relatively strong, with ROE ranging between 15% and 24%, reflecting effective utilization of equity capital. The latest data point in 2023 shows a decrease to 15.31%, which, while lower than some peak years, remains a healthy return level.
In summary, the financial metrics suggest that despite some periods of underperformance, the entity has demonstrated overall growth in both profitability and equity base. The notable dip in net income and ROE around 2016 stands out as a key event impacting performance; however, recovery and growth after this point illustrate resilience and improved operational effectiveness. The continuing increase in stockholders’ equity supports sustained financial strength and provides a solid foundation for future growth.
Comparison to Competitors
Humana Inc., ROE, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 15.31% | 14.83% | 15.23% | 13.51% | 7.30% | 25.22% |
| Dec 31, 2022 | 18.33% | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 18.24% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 24.53% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 22.49% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 16.56% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 24.87% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 5.75% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 12.33% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 11.89% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 13.21% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 13.81% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 17.60% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 15.88% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 18.00% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 14.52% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 20.69% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 15.96% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 12.47% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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).
Comparison to Sector (Health Care Equipment & Services)
Humana Inc., ROE, long-term trends, comparison to sector (health care equipment & services)
| Humana Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2023 | 15.31% | 17.13% |
| Dec 31, 2022 | 18.33% | 18.40% |
| Dec 31, 2021 | 18.24% | 17.28% |
| Dec 31, 2020 | 24.53% | 15.80% |
| Dec 31, 2019 | 22.49% | 15.85% |
| Dec 31, 2018 | 16.56% | 13.28% |
| Dec 31, 2017 | 24.87% | 12.21% |
| Dec 31, 2016 | 5.75% | 10.70% |
| Dec 31, 2015 | 12.33% | 11.84% |
| Dec 31, 2014 | 11.89% | 13.81% |
| Dec 31, 2013 | 13.21% | 14.22% |
| Dec 31, 2012 | 13.81% | 17.99% |
| Dec 31, 2011 | 17.60% | 17.02% |
| Dec 31, 2010 | 15.88% | 17.62% |
| Dec 31, 2009 | 18.00% | 19.50% |
| Dec 31, 2008 | 14.52% | 17.63% |
| Dec 31, 2007 | 20.69% | 20.02% |
| Dec 31, 2006 | 15.96% | 16.70% |
| Dec 31, 2005 | 12.47% | 16.22% |
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., ROE, long-term trends, comparison to industry (health care)
| Humana Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 15.31% | 19.40% |
| Dec 31, 2022 | 18.33% | 24.82% |
| Dec 31, 2021 | 18.24% | 25.44% |
| Dec 31, 2020 | 24.53% | 16.70% |
| Dec 31, 2019 | 22.49% | 23.30% |
| Dec 31, 2018 | 16.56% | 21.27% |
| Dec 31, 2017 | 24.87% | 13.77% |
| Dec 31, 2016 | 5.75% | 18.53% |
| Dec 31, 2015 | 12.33% | 18.52% |
| Dec 31, 2014 | 11.89% | 19.17% |
| Dec 31, 2013 | 13.21% | 18.81% |
| Dec 31, 2012 | 13.81% | 18.20% |
| Dec 31, 2011 | 17.60% | 15.90% |
| Dec 31, 2010 | 15.88% | 14.85% |
| Dec 31, 2009 | 18.00% | 20.14% |
| Dec 31, 2008 | 14.52% | 20.29% |
| Dec 31, 2007 | 20.69% | 17.87% |
| Dec 31, 2006 | 15.96% | 20.49% |
| Dec 31, 2005 | 12.47% | 18.28% |
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).