Stock Analysis on Net
Stock Analysis on Net

Humana Inc. (NYSE:HUM)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Humana Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 2.24 2.15 1.87 2.17 2.21
Adjusted 2.24 2.15 1.86 2.17 2.21
Liquidity Ratio
Current Ratio
Reported 1.59 1.52 1.62 1.77 1.82
Adjusted 1.62 1.55 1.66 1.81 1.87
Solvency Ratios
Debt to Equity
Reported 0.74 0.75 0.80 0.51 0.49
Adjusted 0.76 0.76 0.79 0.51 0.50
Debt to Capital
Reported 0.42 0.43 0.44 0.34 0.33
Adjusted 0.43 0.43 0.44 0.34 0.33
Financial Leverage
Reported 2.89 2.81 2.76 2.55 2.42
Adjusted 2.83 2.74 2.59 2.37 2.30
Profitability Ratios
Net Profit Margin
Reported 2.36% 3.03% 3.54% 4.43% 4.20%
Adjusted 2.49% 1.49% 3.08% 5.09% 4.88%
Return on Equity (ROE)
Reported 15.31% 18.33% 18.24% 24.53% 22.49%
Adjusted 15.78% 8.73% 14.86% 26.20% 24.72%
Return on Assets (ROA)
Reported 5.29% 6.52% 6.61% 9.63% 9.31%
Adjusted 5.57% 3.19% 5.73% 11.05% 10.77%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Humana Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Humana Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Humana Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Humana Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Humana Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Humana Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Humana Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Humana Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Humana Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
External revenues 105,305 92,488 82,877 76,001 64,387
Total assets 47,065 43,055 44,358 34,969 29,074
Activity Ratio
Total asset turnover1 2.24 2.15 1.87 2.17 2.21
Adjusted
Selected Financial Data (US$ in millions)
Adjusted external revenues2 105,285 92,520 82,813 76,072 64,351
Adjusted total assets3 47,105 43,125 44,441 35,041 29,143
Activity Ratio
Adjusted total asset turnover4 2.24 2.15 1.86 2.17 2.21

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).

1 2023 Calculation
Total asset turnover = External revenues ÷ Total assets
= 105,305 ÷ 47,065 = 2.24

2 Adjusted external revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted external revenues ÷ Adjusted total assets
= 105,285 ÷ 47,105 = 2.24

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Humana Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 29,986 26,183 24,893 23,641 19,888
Current liabilities 18,872 17,178 15,331 13,394 10,929
Liquidity Ratio
Current ratio1 1.59 1.52 1.62 1.77 1.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 30,074 26,253 24,976 23,713 19,957
Adjusted current liabilities3 18,606 16,892 15,077 13,076 10,682
Liquidity Ratio
Adjusted current ratio4 1.62 1.55 1.66 1.81 1.87

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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 29,986 ÷ 18,872 = 1.59

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 30,074 ÷ 18,606 = 1.62

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Humana Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 12,009 11,424 12,820 6,980 5,891
Stockholders’ equity 16,262 15,311 16,080 13,728 12,037
Solvency Ratio
Debt to equity1 0.74 0.75 0.80 0.51 0.49
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 12,602 12,032 13,551 7,464 6,339
Adjusted total equity3 16,624 15,753 17,138 14,777 12,694
Solvency Ratio
Adjusted debt to equity4 0.76 0.76 0.79 0.51 0.50

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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 12,009 ÷ 16,262 = 0.74

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 12,602 ÷ 16,624 = 0.76

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Humana Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 12,009 11,424 12,820 6,980 5,891
Total capital 28,271 26,735 28,900 20,708 17,928
Solvency Ratio
Debt to capital1 0.42 0.43 0.44 0.34 0.33
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 12,602 12,032 13,551 7,464 6,339
Adjusted total capital3 29,226 27,785 30,689 22,241 19,033
Solvency Ratio
Adjusted debt to capital4 0.43 0.43 0.44 0.34 0.33

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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,009 ÷ 28,271 = 0.42

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 12,602 ÷ 29,226 = 0.43

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Humana Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 47,065 43,055 44,358 34,969 29,074
Stockholders’ equity 16,262 15,311 16,080 13,728 12,037
Solvency Ratio
Financial leverage1 2.89 2.81 2.76 2.55 2.42
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 47,105 43,125 44,441 35,041 29,143
Adjusted total equity3 16,624 15,753 17,138 14,777 12,694
Solvency Ratio
Adjusted financial leverage4 2.83 2.74 2.59 2.37 2.30

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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 47,065 ÷ 16,262 = 2.89

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 47,105 ÷ 16,624 = 2.83

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Humana Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana 2,489 2,806 2,933 3,367 2,707
External revenues 105,305 92,488 82,877 76,001 64,387
Profitability Ratio
Net profit margin1 2.36% 3.03% 3.54% 4.43% 4.20%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,623 1,375 2,547 3,871 3,138
Adjusted external revenues3 105,285 92,520 82,813 76,072 64,351
Profitability Ratio
Adjusted net profit margin4 2.49% 1.49% 3.08% 5.09% 4.88%

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).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Humana ÷ External revenues
= 100 × 2,489 ÷ 105,305 = 2.36%

2 Adjusted net income. See details »

3 Adjusted external revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted external revenues
= 100 × 2,623 ÷ 105,285 = 2.49%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Humana Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana 2,489 2,806 2,933 3,367 2,707
Stockholders’ equity 16,262 15,311 16,080 13,728 12,037
Profitability Ratio
ROE1 15.31% 18.33% 18.24% 24.53% 22.49%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,623 1,375 2,547 3,871 3,138
Adjusted total equity3 16,624 15,753 17,138 14,777 12,694
Profitability Ratio
Adjusted ROE4 15.78% 8.73% 14.86% 26.20% 24.72%

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).

1 2023 Calculation
ROE = 100 × Net income attributable to Humana ÷ Stockholders’ equity
= 100 × 2,489 ÷ 16,262 = 15.31%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 2,623 ÷ 16,624 = 15.78%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Humana Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana 2,489 2,806 2,933 3,367 2,707
Total assets 47,065 43,055 44,358 34,969 29,074
Profitability Ratio
ROA1 5.29% 6.52% 6.61% 9.63% 9.31%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,623 1,375 2,547 3,871 3,138
Adjusted total assets3 47,105 43,125 44,441 35,041 29,143
Profitability Ratio
Adjusted ROA4 5.57% 3.19% 5.73% 11.05% 10.77%

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).

1 2023 Calculation
ROA = 100 × Net income attributable to Humana ÷ Total assets
= 100 × 2,489 ÷ 47,065 = 5.29%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,623 ÷ 47,105 = 5.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Humana Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.