Humana Inc. (NYSE:HUM)

Asset Turnover

The reported total asset turnover ratio shows a decline from 2.21 in 2019 to 1.87 in 2021, followed by a recovery to 2.24 in 2023. The adjusted figures exhibit a similar pattern, indicating a temporary reduction in asset efficiency around 2021 with subsequent improvement.

Liquidity Ratios

Both reported and adjusted current ratios exhibit a steady downward trend from 2019 through 2022, decreasing from approximately 1.82 to a low of 1.52 (reported) and from 1.87 to 1.55 (adjusted). A slight rebound occurred in 2023, with ratios increasing to about 1.59 (reported) and 1.62 (adjusted), suggesting a cautious improvement in short-term liquidity after a period of tightening.

Leverage Ratios

The debt to equity ratio increased markedly from 0.49 in 2019 to around 0.8 in 2021, then slightly declined to the 0.74–0.76 range by 2023. Similarly, debt to capital rose from 0.33 in 2019 to roughly 0.44 in 2021 before stabilizing near 0.42–0.43. These changes indicate an increase in leverage through 2021 with a modest reduction or stabilization thereafter. The financial leverage ratio follows a continuous upward trajectory from 2.42 in 2019 to 2.89 in 2023, reflecting an ongoing increase in the use of debt financing relative to equity.

Profitability Margins

The reported net profit margin declined steadily from 4.2% in 2019 to 2.36% in 2023, reaching a low of 3.03% in 2022. Adjusted net profit margin showed greater volatility, peaking at 5.09% in 2020 before plunging to 1.49% in 2022 and recovering to 2.49% in 2023. This series indicates increasing margin pressure, with some recovery in the latest period but overall declining profitability over the five years.

Return on Equity (ROE)

The reported ROE declined from 22.49% in 2019 to 15.31% in 2023, with a particularly sharp drop after 2020 and a slight stabilization between 2022 and 2023. Adjusted ROE shows greater fluctuation, rising to 26.2% in 2020 but dropping sharply to 8.73% in 2022, before partially rebounding to 15.78% in 2023. This trend reveals weakening shareholder returns, with some recovery in the most recent period.

Return on Assets (ROA)

Reported ROA decreased from 9.31% in 2019 to 5.29% in 2023, following a generally downward trend with a slight plateau in 2021 and 2022. Adjusted ROA also declined more sharply, falling from 10.77% in 2019 to 3.19% in 2022, before increasing to 5.57% in 2023. These patterns confirm a reduction in the efficiency of asset use to generate profits across the timeframe, with some improvement in the final year observed.

External Revenues

The external revenues demonstrated a consistent upward trend over the five-year period. Starting at approximately $64.4 billion in 2019, revenues increased each year, reaching about $105.3 billion by the end of 2023. This growth reflects a steady expansion in the company's revenue-generating capacity.

Total Assets

Total assets also exhibited growth during the period, rising from roughly $29.1 billion in 2019 to $47.1 billion in 2023 when adjusted values are considered. There was a notable acceleration between 2019 and 2021, followed by a slight dip in 2022 before rebounding in 2023. The fluctuations suggest some variability in asset management or acquisition activities.

Reported and Adjusted Total Asset Turnover

The total asset turnover ratio, both reported and adjusted, showed a small decline from about 2.21 in 2019 to a low near 1.86–1.87 in 2021. This indicates that asset efficiency in generating revenues weakened somewhat during this timeframe. However, the ratio improved in subsequent years, reaching approximately 2.24 by 2023, suggesting a recovery and enhanced asset utilization efficiency in more recent periods.

Comparison of Reported and Adjusted Figures

The reported and adjusted external revenues and total assets align closely throughout the analyzed years, with only negligible differences. This consistency reinforces the reliability of the presented data and indicates few adjustments affecting these financial metrics.

Overall Trends and Insights

Overall, the company experienced robust revenue growth accompanied by rising asset levels. Despite a temporary dip in asset turnover efficiency around 2021, the ratio improved thereafter, suggesting effective management adjustments or operational improvements. The increase in external revenues outpaced the growth in total assets over the period, particularly toward the latter years, reflecting improved asset productivity and potential scalability in business operations.

The financial data reveals consistent growth in both current assets and current liabilities from 2019 through 2023. Current assets increased steadily from $19,888 million in 2019 to $29,986 million in 2023. Similarly, current liabilities rose from $10,929 million to $18,872 million over the same period. This growth reflects expanding operational scale and possibly increased short-term obligations.

The reported current ratio, which measures liquidity by comparing current assets to current liabilities, shows a declining trend from 1.82 in 2019 to a low of 1.52 in 2022, followed by a slight recovery to 1.59 in 2023. While the ratio remains above 1, indicating that current assets exceed current liabilities, the downward trend suggests a relative tightening of liquidity over this period before a modest improvement.

When adjusted values are considered, the adjusted current assets and liabilities follow a similar increasing pattern, with adjusted current assets rising from $19,957 million in 2019 to $30,074 million in 2023, and adjusted current liabilities increasing from $10,682 million to $18,606 million. The adjusted current ratio also decreases from 1.87 in 2019 to 1.55 in 2022, then improves slightly to 1.62 in 2023. This adjusted ratio trend corroborates the pattern observed in the reported current ratio, indicating that even after adjustments, liquidity ratios experienced a reduction followed by a partial recovery.

Overall, the data indicates a substantial increase in short-term assets and liabilities, accompanied by a moderate decline in liquidity ratios over the four-year span, with a slight improvement in the final year. This suggests that while the company’s scale of operations and obligations expanded, its ability to cover short-term liabilities with current assets became relatively tighter but stabilized recently.

Current Assets

Increased steadily from $19,888 million in 2019 to $29,986 million in 2023, reflecting growth in resources available within one year.

Current Liabilities

Grew from $10,929 million to $18,872 million, indicating increasing short-term obligations.

Reported Current Ratio

Declined from 1.82 to a low of 1.52 in 2022, with a slight rebound to 1.59 in 2023, suggesting narrowing liquidity margins.

Adjusted Current Assets

Followed a growth pattern similar to reported assets, moving from $19,957 million to $30,074 million.

Adjusted Current Liabilities

Increased in line with reported liabilities, growing from $10,682 million to $18,606 million.

Adjusted Current Ratio

Decreased from 1.87 in 2019 to 1.55 in 2022, before rising marginally to 1.62 in 2023, reflecting adjusted liquidity pressures consistent with reported ratios.

Total Debt

The total debt increased significantly from 2019 to 2021, rising from $5,891 million to $12,820 million. After this peak, it declined to $11,424 million in 2022 before rising slightly to $12,009 million in 2023. This indicates a substantial growth in leverage during the first three years, followed by a moderate reduction and stabilization.

Stockholders' Equity

Stockholders’ equity showed a steady upward trend from 2019 through 2021, increasing from $12,037 million to $16,080 million. However, in 2022 there was a slight decline to $15,311 million, followed by a recovery to $16,262 million in 2023. The overall movement suggests consistent growth with a temporary dip in 2022.

Reported Debt to Equity Ratio

The reported debt to equity ratio rose sharply from 0.49 in 2019 to 0.80 in 2021, reflecting an increased reliance on debt relative to equity. This ratio then decreased modestly to 0.75 in 2022 and remained stable at 0.74 in 2023. The pattern denotes a peak in leverage around 2021 with subsequent improvement in capital structure balance.

Adjusted Total Debt

Adjusted total debt mirrors the trend of total debt, increasing from $6,339 million in 2019 to $13,551 million in 2021, before declining to $12,032 million in 2022 and slightly increasing to $12,602 million in 2023. These adjustments maintain the narrative of rising indebtedness followed by a partial reduction.

Adjusted Total Equity

Adjusted total equity rose from $12,694 million in 2019 to $17,138 million in 2021, then decreased to $15,753 million in 2022 before recovering to $16,624 million in 2023. This reflects a general trend of equity growth with a dip during 2022, aligning with the unadjusted equity observations.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio increased from 0.50 in 2019 to 0.79 in 2021, indicating greater leverage. It then slightly decreased to 0.76 in both 2022 and 2023, suggesting a stabilization of the capital structure after peaking. This pattern confirms the reliance on debt increased initially but showed signs of normalization in recent years.

The financial data reveals several notable trends regarding the company's debt and capital structure over the five-year period ending in 2023.

Total debt

Total debt increased significantly from US$5,891 million in 2019 to a peak of US$12,820 million in 2021, more than doubling within two years. Subsequently, it declined to US$11,424 million in 2022 but rose again in 2023 to US$12,009 million, maintaining a generally elevated level compared to earlier years.

Total capital

Total capital also grew considerably, rising from US$17,928 million in 2019 to US$28,900 million by 2021. It experienced a slight decrease in 2022 to US$26,735 million, followed by a recovery to US$28,271 million in 2023. Overall, total capital expanded by roughly 57% over the period, indicating growth in the company's overall financing base.

Reported debt to capital ratio

The ratio of reported debt to capital increased from 0.33 in 2019 to a high of 0.44 in 2021, reflecting a greater leverage position during that year. Afterwards, it decreased marginally to 0.43 in 2022 and further to 0.42 in 2023, suggesting a slight deleveraging or stabilization of the capital structure despite elevated debt levels.

Adjusted total debt

Adjusted total debt follows a pattern similar to reported total debt, starting at US$6,339 million in 2019 and rising sharply to US$13,551 million in 2021. It then declined to US$12,032 million in 2022 before increasing again to US$12,602 million in 2023. These adjustments slightly modify the absolute debt values but maintain the overall trend.

Adjusted total capital

Adjusted total capital increased from US$19,033 million in 2019 to a peak of US$30,689 million in 2021. A decline to US$27,785 million occurred in 2022, followed by a rise to US$29,226 million in 2023. This mirrors the total capital trend but at consistently higher absolute amounts, indicating adjustments that result in a more comprehensive capital base.

Adjusted debt to capital ratio

The adjusted debt to capital ratio exhibits an increase from 0.33 in 2019 to 0.44 in 2021, then a slight decline to 0.43 in 2022 and stability at 0.43 in 2023. The minimal variation here suggests that the adjusted leverage ratio remained fairly constant following its peak in 2021.

In summary, the data indicates a period of significant growth in both debt and capital, with peak leverage ratios observed in 2021. Despite some reduction in debt levels and capital in 2022, both measures rebounded somewhat in 2023. The leverage ratios suggest the company managed a relatively stable debt-to-capital structure in recent years, following an elevated leverage position around 2021.

The data reveals several important trends in the financial position over the five-year period from 2019 to 2023.

Total Assets

Total assets show a general upward trend, increasing from $29,074 million in 2019 to $47,065 million in 2023. A notable acceleration occurred between 2020 and 2021, with assets rising by approximately 27% from $34,969 million to $44,358 million. A slight decline was observed in 2022, followed by a recovery in 2023 reaching the highest level in the analyzed period.

Stockholders' Equity

Stockholders’ equity consistently increased from $12,037 million in 2019 to $16,262 million in 2023. The growth is steady though somewhat less volatile than total assets, reflecting a stable but moderate expansion in shareholders' capital. Equity peaked in 2021, experienced a slight dip in 2022, then resumed growth in 2023.

Reported Financial Leverage

The reported financial leverage ratio gradually rose from 2.42 in 2019 to 2.89 in 2023. This indicates a progressive increase in the use of debt relative to equity. The leverage increased more noticeably after 2020, suggesting greater reliance on debt financing as the company’s asset base expanded.

Adjusted Total Assets and Equity

Adjusted total assets and adjusted total equity display trends closely mirroring their reported counterparts. Adjusted total assets increase from $29,143 million in 2019 to $47,105 million in 2023, while adjusted total equity rose from $12,694 million to $16,624 million over the same period. The adjustments did not materially alter the overall growth patterns observed in reported figures.

Adjusted Financial Leverage

Adjusted financial leverage also exhibited a rising trend, starting at 2.3 in 2019 and reaching 2.83 in 2023. This confirms the increase in leverage observed in reported figures and underscores a consistent expansion in leverage when considering adjusted measures.

Overall, the financial data demonstrates steady growth in both assets and equity, accompanied by a gradual and consistent increase in financial leverage. The company appears to be expanding its asset base while moderately increasing its use of debt financing relative to equity. Temporary declines observed in 2022 suggest some volatility, but recovery in 2023 indicates resilience in managing financial structure and growth objectives.

Net income attributable to Humana

The net income showed an overall decline over the five-year period. It peaked in 2020 at 3,367 million USD and then gradually decreased to 2,489 million USD in 2023. This trend indicates a reduction in profitability in recent years.

External revenues

External revenues exhibited a consistent upward trend from 64,387 million USD in 2019 to 105,305 million USD in 2023. This steady increase reflects growth in the company’s top-line performance each year.

Reported net profit margin

The reported net profit margin declined progressively from 4.2% in 2019 to 2.36% in 2023. This downward trend suggests that despite rising revenues, profitability relative to revenue has weakened over the period.

Adjusted net income

Adjusted net income rose from 3,138 million USD in 2019, reaching its highest point at 3,871 million USD in 2020. It then decreased sharply to 1,375 million USD in 2022, followed by a partial recovery to 2,623 million USD in 2023. This volatility suggests significant fluctuations in non-recurring or non-operational items affecting reported earnings.

Adjusted external revenues

The pattern of adjusted external revenues closely mirrors that of reported external revenues, consistently increasing from 64,351 million USD in 2019 to 105,285 million USD in 2023. This consistency reinforces the observation of sustained revenue growth.

Adjusted net profit margin

Adjusted net profit margin started at 4.88% in 2019, improved to 5.09% in 2020, but declined sharply to 1.49% in 2022 before partially recovering to 2.49% in 2023. This indicates variability in profitability after adjusting for certain items, highlighting possible challenges in maintaining consistent operating efficiency.

Net Income Trend

Net income attributable to the company showed an initial increase from 2,707 million USD in 2019 to a peak of 3,367 million USD in 2020. Following this, net income declined over the next three years, reaching 2,489 million USD in 2023. This represents a gradual decrease after the high point in 2020, suggesting challenges in maintaining peak profitability levels.

Stockholders’ Equity Development

Stockholders’ equity exhibited an overall upward trend from 12,037 million USD in 2019 to 16,262 million USD in 2023. There was continuous growth between 2019 and 2021, peaking at 16,080 million USD, followed by a slight decline in 2022 before increasing again in 2023. This indicates a generally strengthening equity base despite a minor fluctuation in 2022.

Reported Return on Equity (ROE) Analysis

The reported ROE started high at 22.49% in 2019 and increased further to 24.53% in 2020. However, it then declined steadily in subsequent years to 15.31% in 2023. The decline in ROE reflects reduced profitability efficiency relative to shareholders' equity over the analyzed period.

Adjusted Net Income Patterns

Adjusted net income followed a pattern similar to net income but with more pronounced fluctuations. It increased from 3,138 million USD in 2019 to 3,871 million USD in 2020, then sharply decreased to 1,375 million USD in 2022 before partially recovering to 2,623 million USD in 2023. This volatility might reflect adjustments for certain non-recurring items impacting profitability reporting.

Adjusted Total Equity Movements

Adjusted total equity rose steadily from 12,694 million USD in 2019 to a peak of 17,138 million USD in 2021. Subsequently, it declined to 15,753 million USD in 2022 before increasing again to 16,624 million USD in 2023. These movements mirror the trends in stockholders’ equity with more variability.

Adjusted Return on Equity (ROE) Dynamics

The adjusted ROE displays significant variation. It was highest in 2020 at 26.2%, declining sharply to 8.73% in 2022, and then rebounding to 15.78% in 2023. This pattern shows considerable fluctuations in adjusted profitability relative to equity, indicating periods of increased and decreased operational efficiency or impact of adjustments over time.

Overall Financial Performance Insights

The data reveals that while equity positions have generally strengthened, profitability measures have experienced declines after 2020, especially in adjusted figures. Both reported and adjusted ROEs reflect decreased returns for shareholders following peak values in 2020, with the adjusted ROE demonstrating more pronounced volatility. The partial recovery observed in 2023 could indicate early signs of stabilization or improved operational conditions.

Net Income Attributable to Humana

The net income shows a fluctuating trend over the five-year period. It increased from 2,707 million USD in 2019 to a peak of 3,367 million USD in 2020, followed by a decline in subsequent years to 2,933 million USD in 2021 and 2,806 million USD in 2022. The downward trend continued in 2023, with net income decreasing further to 2,489 million USD.

Total Assets

Total assets exhibited consistent growth throughout the period. Starting at 29,074 million USD in 2019, assets increased steadily each year, reaching 47,065 million USD by the end of 2023. This suggests ongoing asset accumulation or acquisition activity within the company.

Reported Return on Assets (ROA)

The reported ROA demonstrates a declining pattern. It peaked at 9.63% in 2020 after starting at 9.31% in 2019. Subsequently, it decreased to 6.61% in 2021, remained relatively stable at 6.52% in 2022, and declined further to 5.29% in 2023. This indicates diminishing efficiency in generating profits from the company's asset base.

Adjusted Net Income

Adjusted net income shows greater volatility compared to net income. It rose from 3,138 million USD in 2019 to 3,871 million USD in 2020, then underwent a sharp decline to 2,547 million USD in 2021, and more than halved to 1,375 million USD in 2022. The figure rebounded in 2023 to 2,623 million USD, suggesting some recovery but not reaching prior highs.

Adjusted Total Assets

The adjusted total assets follow a growth trend similar to total assets, increasing from 29,143 million USD in 2019 to 47,105 million USD in 2023. The steady increase underscores expanding asset holdings when adjustments are considered.

Adjusted Return on Assets (ROA)

Adjusted ROA aligns generally with the reported ROA trend but with more pronounced fluctuations. It was 10.77% in 2019, increasing slightly to 11.05% in 2020, then dropping sharply to 5.73% in 2021 and further to 3.19% in 2022. In 2023, adjusted ROA improved to 5.57%, indicating some recent improvement in asset profitability after a significant downturn.