Stock Analysis on Net
Stock Analysis on Net

Humana Inc. (NYSE:HUM)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Humana Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2024 12.34% = 3.97% × 3.11
Dec 31, 2023 15.31% = 5.29% × 2.89
Sep 30, 2023 17.79% = 5.39% × 3.30
Jun 30, 2023 20.07% = 5.98% × 3.35
Mar 31, 2023 18.79% = 5.69% × 3.30
Dec 31, 2022 18.33% = 6.52% × 2.81
Sep 30, 2022 17.27% = 5.53% × 3.12
Jun 30, 2022 20.29% = 6.71% × 3.02
Mar 31, 2022 19.81% = 6.55% × 3.02
Dec 31, 2021 18.24% = 6.61% × 2.76
Sep 30, 2021 16.44% = 5.90% × 2.79
Jun 30, 2021 16.72% = 6.52% × 2.56
Mar 31, 2021 26.23% = 9.95% × 2.64
Dec 31, 2020 24.53% = 9.63% × 2.55
Sep 30, 2020 26.34% = 10.79% × 2.44
Jun 30, 2020 24.29% = 9.11% × 2.67
Mar 31, 2020 21.16% = 7.55% × 2.80
Dec 31, 2019 22.49% = 9.31% × 2.42
Sep 30, 2019 — = — × 2.52
Jun 30, 2019 — = — × 2.44
Mar 31, 2019 — = — × 2.61

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Humana Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 12.34% = 1.84% × 2.16 × 3.11
Dec 31, 2023 15.31% = 2.36% × 2.24 × 2.89
Sep 30, 2023 17.79% = 2.97% × 1.81 × 3.30
Jun 30, 2023 20.07% = 3.45% × 1.73 × 3.35
Mar 31, 2023 18.79% = 3.28% × 1.74 × 3.30
Dec 31, 2022 18.33% = 3.03% × 2.15 × 2.81
Sep 30, 2022 17.27% = 3.07% × 1.80 × 3.12
Jun 30, 2022 20.29% = 3.52% × 1.91 × 3.02
Mar 31, 2022 19.81% = 3.52% × 1.86 × 3.02
Dec 31, 2021 18.24% = 3.54% × 1.87 × 2.76
Sep 30, 2021 16.44% = 3.31% × 1.78 × 2.79
Jun 30, 2021 16.72% = 3.13% × 2.08 × 2.56
Mar 31, 2021 26.23% = 4.78% × 2.08 × 2.64
Dec 31, 2020 24.53% = 4.43% × 2.17 × 2.55
Sep 30, 2020 26.34% = 5.67% × 1.90 × 2.44
Jun 30, 2020 24.29% = 5.00% × 1.82 × 2.67
Mar 31, 2020 21.16% = 3.89% × 1.94 × 2.80
Dec 31, 2019 22.49% = 4.20% × 2.21 × 2.42
Sep 30, 2019 — = — × — × 2.52
Jun 30, 2019 — = — × — × 2.44
Mar 31, 2019 — = — × — × 2.61

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Humana Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 12.34% = 0.73 × 0.83 × 3.01% × 2.16 × 3.11
Dec 31, 2023 15.31% = 0.75 × 0.87 × 3.63% × 2.24 × 2.89
Sep 30, 2023 17.79% = 0.78 × 0.89 × 4.26% × 1.81 × 3.30
Jun 30, 2023 20.07% = 0.83 × 0.90 × 4.62% × 1.73 × 3.35
Mar 31, 2023 18.79% = 0.79 × 0.90 × 4.60% × 1.74 × 3.30
Dec 31, 2022 18.33% = 0.79 × 0.90 × 4.29% × 2.15 × 2.81
Sep 30, 2022 17.27% = 0.78 × 0.90 × 4.34% × 1.80 × 3.12
Jun 30, 2022 20.29% = 0.80 × 0.91 × 4.80% × 1.91 × 3.02
Mar 31, 2022 19.81% = 0.85 × 0.91 × 4.55% × 1.86 × 3.02
Dec 31, 2021 18.24% = 0.86 × 0.91 × 4.52% × 1.87 × 2.76
Sep 30, 2021 16.44% = 0.88 × 0.91 × 4.14% × 1.78 × 2.79
Jun 30, 2021 16.72% = 0.78 × 0.92 × 4.37% × 2.08 × 2.56
Mar 31, 2021 26.23% = 0.74 × 0.95 × 6.81% × 2.08 × 2.64
Dec 31, 2020 24.53% = 0.72 × 0.94 × 6.52% × 2.17 × 2.55
Sep 30, 2020 26.34% = 0.73 × 0.96 × 8.17% × 1.90 × 2.44
Jun 30, 2020 24.29% = 0.73 × 0.95 × 7.24% × 1.82 × 2.67
Mar 31, 2020 21.16% = 0.76 × 0.93 × 5.49% × 1.94 × 2.80
Dec 31, 2019 22.49% = 0.78 × 0.93 × 5.77% × 2.21 × 2.42
Sep 30, 2019 — = — × — × — × — × 2.52
Jun 30, 2019 — = — × — × — × — × 2.44
Mar 31, 2019 — = — × — × — × — × 2.61

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Humana Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 3.97% = 1.84% × 2.16
Dec 31, 2023 5.29% = 2.36% × 2.24
Sep 30, 2023 5.39% = 2.97% × 1.81
Jun 30, 2023 5.98% = 3.45% × 1.73
Mar 31, 2023 5.69% = 3.28% × 1.74
Dec 31, 2022 6.52% = 3.03% × 2.15
Sep 30, 2022 5.53% = 3.07% × 1.80
Jun 30, 2022 6.71% = 3.52% × 1.91
Mar 31, 2022 6.55% = 3.52% × 1.86
Dec 31, 2021 6.61% = 3.54% × 1.87
Sep 30, 2021 5.90% = 3.31% × 1.78
Jun 30, 2021 6.52% = 3.13% × 2.08
Mar 31, 2021 9.95% = 4.78% × 2.08
Dec 31, 2020 9.63% = 4.43% × 2.17
Sep 30, 2020 10.79% = 5.67% × 1.90
Jun 30, 2020 9.11% = 5.00% × 1.82
Mar 31, 2020 7.55% = 3.89% × 1.94
Dec 31, 2019 9.31% = 4.20% × 2.21
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Humana Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2024 3.97% = 0.73 × 0.83 × 3.01% × 2.16
Dec 31, 2023 5.29% = 0.75 × 0.87 × 3.63% × 2.24
Sep 30, 2023 5.39% = 0.78 × 0.89 × 4.26% × 1.81
Jun 30, 2023 5.98% = 0.83 × 0.90 × 4.62% × 1.73
Mar 31, 2023 5.69% = 0.79 × 0.90 × 4.60% × 1.74
Dec 31, 2022 6.52% = 0.79 × 0.90 × 4.29% × 2.15
Sep 30, 2022 5.53% = 0.78 × 0.90 × 4.34% × 1.80
Jun 30, 2022 6.71% = 0.80 × 0.91 × 4.80% × 1.91
Mar 31, 2022 6.55% = 0.85 × 0.91 × 4.55% × 1.86
Dec 31, 2021 6.61% = 0.86 × 0.91 × 4.52% × 1.87
Sep 30, 2021 5.90% = 0.88 × 0.91 × 4.14% × 1.78
Jun 30, 2021 6.52% = 0.78 × 0.92 × 4.37% × 2.08
Mar 31, 2021 9.95% = 0.74 × 0.95 × 6.81% × 2.08
Dec 31, 2020 9.63% = 0.72 × 0.94 × 6.52% × 2.17
Sep 30, 2020 10.79% = 0.73 × 0.96 × 8.17% × 1.90
Jun 30, 2020 9.11% = 0.73 × 0.95 × 7.24% × 1.82
Mar 31, 2020 7.55% = 0.76 × 0.93 × 5.49% × 1.94
Dec 31, 2019 9.31% = 0.78 × 0.93 × 5.77% × 2.21
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Humana Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2024 1.84% = 0.73 × 0.83 × 3.01%
Dec 31, 2023 2.36% = 0.75 × 0.87 × 3.63%
Sep 30, 2023 2.97% = 0.78 × 0.89 × 4.26%
Jun 30, 2023 3.45% = 0.83 × 0.90 × 4.62%
Mar 31, 2023 3.28% = 0.79 × 0.90 × 4.60%
Dec 31, 2022 3.03% = 0.79 × 0.90 × 4.29%
Sep 30, 2022 3.07% = 0.78 × 0.90 × 4.34%
Jun 30, 2022 3.52% = 0.80 × 0.91 × 4.80%
Mar 31, 2022 3.52% = 0.85 × 0.91 × 4.55%
Dec 31, 2021 3.54% = 0.86 × 0.91 × 4.52%
Sep 30, 2021 3.31% = 0.88 × 0.91 × 4.14%
Jun 30, 2021 3.13% = 0.78 × 0.92 × 4.37%
Mar 31, 2021 4.78% = 0.74 × 0.95 × 6.81%
Dec 31, 2020 4.43% = 0.72 × 0.94 × 6.52%
Sep 30, 2020 5.67% = 0.73 × 0.96 × 8.17%
Jun 30, 2020 5.00% = 0.73 × 0.95 × 7.24%
Mar 31, 2020 3.89% = 0.76 × 0.93 × 5.49%
Dec 31, 2019 4.20% = 0.78 × 0.93 × 5.77%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q1 2024 is the decrease in operating profitability measured by EBIT margin ratio.