Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Cash Flow Statement
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Humana Inc., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio demonstrated a decline from 32.93 in 2019 to 26.97 in 2021, indicating reduced efficiency in generating revenue from net fixed assets during this period. However, the ratio increased in the subsequent years, reaching 34.75 by the end of 2023, surpassing the initial 2019 level. This suggests an improvement in asset utilization efficiency in recent years.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This metric follows a similar trend as the net fixed asset turnover but at lower values. It declined steadily from 27.22 in 2019 to 22.09 in 2021, reflecting a decrease in asset utilization when rights-of-use assets and operating leases are considered. Subsequently, it increased, reaching 29.75 in 2023, indicating enhanced operational efficiency with these assets included.
- Total asset turnover
- The total asset turnover ratio decreased from 2.21 in 2019 to 1.87 in 2021, suggesting a reduction in overall asset efficiency during this timeframe. Following this dip, the ratio rebounded, increasing to 2.24 in 2023, the highest level in the period analyzed, which points to improved effectiveness in using total assets to generate sales.
- Equity turnover
- The equity turnover ratio showed a generally increasing trend over the five-year span. It moved from 5.35 in 2019 to 5.54 in 2020, dipped slightly to 5.15 in 2021, then rose to 6.04 in 2022 and further to 6.48 in 2023. This pattern indicates growing efficiency in the utilization of shareholders’ equity to produce revenue, with the most substantial gains occurring in the last two years.
Net Fixed Asset Turnover
Humana Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| External revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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 fixed asset turnover = External revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- External Revenues
- There is a clear upward trend in external revenues over the five-year period, increasing from $64,387 million in 2019 to $105,305 million in 2023. This represents steady growth year over year, indicating an expanding business or increased market demand.
- Property and Equipment, Net
- The net value of property and equipment rose from $1,955 million in 2019 to a peak of $3,221 million in 2022, followed by a slight decline to $3,030 million in 2023. This suggests significant investment in fixed assets through 2022, with some divestment or depreciation impacts occurring in 2023.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio initially declined from 32.93 in 2019 to a low of 26.97 in 2021, indicating reduced efficiency in generating revenue from fixed assets during this period. However, the ratio improved to 28.71 in 2022 and further increased substantially to 34.75 in 2023, suggesting enhanced utilization or productivity of property and equipment assets in the most recent year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Humana Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| External revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets (included within Other long-term assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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 fixed asset turnover (including operating lease, right-of-use asset) = External revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- External revenues exhibit a consistent upward trajectory over the five-year period, increasing from $64,387 million in 2019 to $105,305 million in 2023. This reflects a strong compound growth trend, with notable increments each year, indicating expanding business operations and market presence.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, rose from $2,365 million in 2019 to a peak of $3,751 million in 2021. Subsequently, this asset base slightly contracted to $3,736 million in 2022 and further to $3,540 million in 2023. The initial growth phase suggests capital investments or acquisitions, whereas the reduction in later years could indicate disposals, depreciation, or shifts in asset utilization.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio declined from 27.22 in 2019 to 22.09 in 2021, implying reduced efficiency in generating revenues from fixed assets during this period. However, the ratio rebounded to 24.76 in 2022 and further improved markedly to 29.75 in 2023, surpassing initial levels. This improvement suggests enhanced asset utilization and operational efficiency in the most recent years despite the reduction in net fixed assets.
- Overall Analysis
- The combination of rising revenues alongside fluctuating but ultimately improved asset turnover indicates effective scaling and management of fixed assets. The peak and subsequent decline in net fixed assets, paired with increasing turnover, may reflect strategic asset optimization or technological upgrades. The financial data point to robust growth with improving efficiency in asset deployment over the observed period.
Total Asset Turnover
Humana Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| External revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The external revenues exhibited a consistent upward trajectory over the five-year period. Starting at $64,387 million in 2019, revenues increased steadily each year, reaching $105,305 million by 2023. This represents a significant growth, indicating robust sales expansion or increased market penetration over time.
- Total Assets
- Total assets showed a general upward trend from 2019 to 2023. Beginning at $29,074 million in 2019, assets rose to $44,358 million in 2021 before experiencing a slight decline to $43,055 million in 2022. By 2023, assets increased again to $47,065 million. The fluctuations suggest periods of asset acquisition and slight reallocation or divestment, but overall growth is evident.
- Total Asset Turnover Ratio
- The total asset turnover ratio, indicative of the efficiency in using assets to generate revenue, fluctuated moderately. It started at 2.21 in 2019, showed a slight decline to 2.17 in 2020, and further decreased to 1.87 in 2021. The ratio then recovered to 2.15 in 2022 and improved further to 2.24 in 2023. This pattern suggests that asset utilization efficiency dipped around 2021 but improved significantly afterward, surpassing the initial levels by 2023.
- Overall Insights
- The data reflects consistent revenue growth accompanied by an overall increase in asset base. The dip in asset turnover ratio around 2021 could imply that asset growth outpaced revenue growth temporarily, perhaps due to strategic investments or acquisitions. However, the subsequent recovery and increase in asset turnover ratio demonstrate improved operational efficiency in leveraging assets to generate revenue. This combination of growing revenues, expanded asset base, and improving asset efficiency points to positive financial and operational dynamics during the period analyzed.
Equity Turnover
Humana Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| External revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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
Equity turnover = External revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The annual financial data indicates several noteworthy trends over the five-year period from 2019 to 2023.
- External Revenues
- External revenues have exhibited a consistent upward trajectory throughout the period. The revenue increased from 64,387 million US dollars at the end of 2019 to 105,305 million US dollars by the end of 2023. This represents a significant cumulative growth, indicating strong sales performance and possibly expanding market presence or pricing power.
- Stockholders’ Equity
- Stockholders’ equity also showed an overall increase from 12,037 million US dollars in 2019 to 16,262 million US dollars in 2023. However, the growth pattern was less consistent compared to revenues, with an increase up to 16,080 million in 2021, followed by a slight decline in 2022 before rising again in 2023. This fluctuation could reflect changes in retained earnings, dividend payouts, or share repurchase activities.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of the company in generating revenue from its equity base, has experienced some variability. After a moderate increase from 5.35 in 2019 to 5.54 in 2020, the ratio declined to 5.15 in 2021. Subsequently, it increased significantly to 6.04 in 2022 and further to 6.48 in 2023. The rising trend in the last two years suggests enhanced operational efficiency and better utilization of equity to drive revenue growth, consistent with the strong revenue performance.
In summary, the data reflects a company that has successfully expanded its external revenues over the analyzed period while managing its equity base with some fluctuations. The improving equity turnover ratio in recent years underscores a trend toward more effective use of capital, contributing to overall financial strengthening.