Humana Inc. (NYSE:HUM)

Current Ratio

The current ratio demonstrates a gradual decline from 1.82 in 2019 to 1.52 in 2022, indicating a decrease in the company's short-term liquidity over this period. However, in 2023, there is a slight recovery to 1.59, suggesting some improvement in the company's ability to cover its current liabilities with current assets.

Quick Ratio

The quick ratio follows a consistent downward trend from 1.47 in 2019 to 1.20 in 2021 and remains stable at 1.20 in 2022. In 2023, a modest increase to 1.24 is observed. This trend implies a reduction in the more liquid assets available to meet immediate liabilities, though the small increase in the latest year indicates a partial reversal of this decline.

Cash Ratio

The cash ratio decreases from 1.37 in 2019 to 1.08 in 2021, suggesting a diminishing cushion of cash and cash equivalents to cover current liabilities. This ratio shows a minor improvement in 2022 and 2023, rising to 1.10 and 1.13 respectively, indicating a slight strengthening in cash liquidity.

Current Assets

Current assets showed a consistent upward trend over the five-year period, increasing from $19,888 million in 2019 to $29,986 million in 2023. This represents steady growth in the company's liquid assets available within one year.

Current Liabilities

Current liabilities also increased consistently, rising from $10,929 million in 2019 to $18,872 million in 2023. The growth in short-term obligations indicates an expansion in the company's immediate financial responsibilities.

Current Ratio

The current ratio declined from 1.82 in 2019 to a low of 1.52 in 2022, before slightly recovering to 1.59 in 2023. This downward trend suggests that, although current assets increased, current liabilities grew at a faster rate, somewhat reducing liquidity coverage over the period. The slight improvement in the most recent year may indicate a stabilization in short-term financial health.

The presented financial data reveals several key trends over the five-year period ending in 2023. Total quick assets showed a consistent increase year over year, rising from $16,082 million in 2019 to $23,355 million in 2023. This indicates a steady improvement in liquid assets available to cover immediate liabilities.

Current liabilities also increased throughout the same period, growing from $10,929 million in 2019 to $18,872 million in 2023. The rising trend in current liabilities suggests that the company has been expanding its short-term obligations, possibly reflecting growth activities or increased operational costs.

The quick ratio, which measures the ability to meet short-term obligations with liquid assets, started at 1.47 in 2019 and decreased to 1.24 by 2023. Despite fluctuations, the quick ratio remained above 1.0 during the entire period, indicating that the company maintained adequate liquidity. However, the downward trend from 1.47 to around 1.2 over the years points to a relative decline in liquid assets compared to current liabilities, reflecting a slight tightening in short-term liquidity position.

Overall, the data demonstrates growth in both liquid assets and current liabilities, with liquidity remaining comfortable but gradually declining in proportional strength. This suggests that while liquid resources have expanded, short-term obligations have increased at a faster pace, requiring careful monitoring of liquidity management going forward.

Total cash assets

The total cash assets demonstrate a generally increasing trend from 2019 through 2023. Starting at $15,026 million in 2019, the amount rose to $21,320 million in 2023. There was a slight dip observed in 2021, where cash assets decreased from $17,227 million in 2020 to $16,586 million, followed by a recovery in subsequent years.

Current liabilities

Current liabilities have shown a continuous upward trend over the period, increasing each year from $10,929 million in 2019 to $18,872 million in 2023. This consistent growth indicates a rising level of short-term obligations relative to prior years.

Cash ratio

The cash ratio exhibited a decreasing trend from 1.37 in 2019 to 1.08 in 2021, reflecting a decline in available liquid assets relative to current liabilities over the initial years. However, the ratio stabilized and showed marginal increases in 2022 and 2023, ending at 1.13. Despite these improvements, the cash ratio remains lower than the 2019 level, suggesting tighter liquidity conditions compared to the beginning of the period.