UnitedHealth Group Inc. (NYSE:UNH)

The data reveals a consistent upward trend in the goodwill valuation over the five-year period, increasing from US$71,337 million at the end of 2020 to US$106,734 million by the end of 2024. This growth suggests ongoing acquisitions or revaluations contributing positively to the reported goodwill.

Customer-related intangible assets demonstrate some fluctuations but overall show growth, starting at US$13,428 million in 2020, dipping slightly in 2021, then recovering and increasing to US$17,190 million by 2024. This pattern may indicate changes in customer contracts or valuation adjustments during this timeframe.

Trademarks and technology assets exhibit steady increases annually, rising from US$1,597 million in 2020 to US$2,917 million in 2024. This steady growth reflects investment or revaluation in branded technology and related intangibles.

The category encompassing trade names, trademarks, operating licenses, certificates, and other indefinite-lived assets reveals a significant surge, particularly between 2022 and 2024. The value rises from US$661 million in 2022 to US$10,454 million by 2024, indicating likely acquisitions or reclassifications that have substantially increased the carrying amount of these assets.

Other intangible assets, gross carrying value, initially declines slightly between 2020 and 2021 but then rises considerably through to 2024, reaching US$31,618 million. This indicates net additions or upward revaluations of these assets over the longer term.

Accumulated amortization consistently increases in magnitude each year, moving from -US$5,455 million in 2020 to -US$8,350 million in 2024, reflecting ongoing amortization expense related to the intangible assets held.

The net carrying value of other intangible assets, which accounts for accumulated amortization, decreases initially between 2020 and 2021 but then demonstrates notable growth through 2024, reaching US$23,268 million. The net increase suggests that additions and revaluations of intangible assets have outpaced amortization expenses during the latter years.

Overall, the sum of goodwill and other intangible assets rises steadily from US$82,193 million in 2020 to US$130,002 million in 2024, highlighting significant growth in these intangible asset categories. This trend may be driven by strategic acquisitions and investments in customer relations, trademarks, technology, and other indefinite-lived assets, alongside steady amortization over time.

Total Assets

Reported total assets exhibited a consistent upward trend from 197,289 million US dollars at the end of 2020 to 298,278 million US dollars by the end of 2024. This represents an overall increase of approximately 51%. Similarly, adjusted total assets, which take into account goodwill adjustments, grew steadily from 125,952 million US dollars in 2020 to 191,544 million US dollars in 2024, marking a significant rise of around 52%. The parallel growth in both reported and adjusted total assets suggests robust asset expansion, although the reported values remain consistently higher due to the inclusion of goodwill.

Shareholders’ Equity

Reported shareholders’ equity attributable to UnitedHealth Group increased steadily each year, rising from 65,491 million US dollars in 2020 to 92,658 million US dollars in 2024. This continuous growth reflects strengthening equity capital, with a cumulative increase of approximately 41.5% over the five-year period. In contrast, the adjusted shareholders’ equity, which excludes goodwill, shows negative values across all years, ranging from -5,846 million in 2020 to -14,076 million in 2024. Although the negative adjusted equity fluctuates, becoming less negative in 2021 and then deepening in subsequent years, this pattern indicates that goodwill and other intangible assets materially inflate reported equity figures.

Overall Insights

The data reveals a consistent expansion in reported asset base and shareholders’ equity, indicating overall growth in company size and capitalization on the surface. However, the goodwill-adjusted figures reveal a more cautious perspective, where tangible asset growth is less pronounced and adjusted equity remains negative. This disparity highlights the significant impact of intangible assets like goodwill on the company's reported financial position. Stakeholders should consider the adjusted metrics to better understand the underlying financial health and the effects of intangible asset valuations on equity.

Total Asset Turnover

The reported total asset turnover remained relatively stable over the observed periods, fluctuating slightly between 1.3 and 1.34 before a slight decline to 1.32 in the final period. In contrast, the adjusted total asset turnover, which excludes goodwill, demonstrated a generally upward trend from 2.03 in 2020 to a peak of 2.16 in 2023, followed by a modest decrease to 2.06 in 2024. This indicates improved efficiency in asset utilization after adjusting for goodwill, although the slight decline in the latest year suggests a potential softening in asset productivity.

Financial Leverage

Reported financial leverage showed minor variation, starting at 3.01 in 2020, dipping to 2.96 in 2021, rising to 3.16 in 2022, and slightly decreasing to 3.08 in 2023 before climbing again to 3.22 in 2024. This pattern suggests a relatively stable but mildly increasing reliance on debt financing or equity leverage over time. Adjusted financial leverage data was not available, limiting insights into the leverage position when goodwill is excluded.

Return on Equity (ROE)

Reported ROE exhibited an overall increasing trend from 23.52% in 2020 to a peak of 25.87% in 2022, followed by a slight decrease to 25.22% in 2023 and a significant drop to 15.55% in 2024. The sharp decline in the most recent year indicates potential challenges in generating equity returns, which may warrant further investigation. Adjusted ROE data was not provided, so comparable trend analysis excluding goodwill is not possible.

Return on Assets (ROA)

Reported ROA showed modest growth from 7.81% in 2020 to a maximum of 8.19% in 2022, remaining stable into 2023 before decreasing notably to 4.83% in 2024. Adjusted ROA, which excludes goodwill, was consistently higher than reported ROA, starting at 12.23% in 2020, rising to a peak of 13.21% in 2022, remaining nearly constant in 2023, and then dropping to 7.52% in 2024. The gap between reported and adjusted ROA highlights the impact of goodwill on asset profitability measures, and the decline in both metrics in 2024 signals reduced effectiveness in asset use during that year.

Total Assets

The reported total assets exhibit a consistent upward trend over the five-year period, increasing from $197,289 million in 2020 to $298,278 million in 2024. This represents a substantial growth of approximately 51% across the period. Similarly, the adjusted total assets, which exclude goodwill, also display steady growth, rising from $125,952 million to $191,544 million, reflecting an increase of about 52%. The parallel growth in both reported and adjusted total assets indicates a broad-based expansion in the asset base that is not solely driven by goodwill additions.

Total Asset Turnover Ratios

The reported total asset turnover ratio remains relatively stable throughout the period, fluctuating slightly between 1.3 and 1.34, and ending at 1.32 in 2024. This suggests the company maintained a consistent level of efficiency in generating revenue from its total assets on a reported basis.

In contrast, the adjusted total asset turnover ratio, which accounts for total assets net of goodwill, shows a gradual increasing trend from 2.03 in 2020 to a peak of 2.16 in 2023 before a slight decline to 2.06 in 2024. This trend indicates improving operational efficiency when goodwill is excluded, implying that the company has been more effective in utilizing its tangible and intangible assets other than goodwill to generate revenue.

Insights

The divergence between reported and adjusted total asset turnover ratios suggests that goodwill carries a dilutive effect on turnover efficiency metrics. The company’s ability to grow total assets concurrently with stable or improving turnover ratios underlines effective asset management. The slight dip in adjusted turnover in 2024 may warrant closer monitoring to assess whether this indicates a short-term fluctuation or the beginning of a trend towards reduced efficiency.

Total Assets

The reported total assets demonstrated a steady increase over the five-year period, rising from $197,289 million in 2020 to $298,278 million in 2024. This indicates consistent growth in asset base, with an approximately 51% increase from 2020 to 2024. Similarly, the adjusted total assets, which presumably exclude goodwill or other intangible assets, also exhibited a progressive increase from $125,952 million in 2020 to $191,544 million in 2024, representing a growth of roughly 52% in the same period. Both measures show aligned positive trends in asset expansion.

Shareholders’ Equity Attributable to UnitedHealth Group

The reported shareholders’ equity showed a persistent upward trend, increasing from $65,491 million in 2020 to $92,658 million in 2024. This growth reflects strengthening equity position with an approximate 41.5% increase over five years. Conversely, the adjusted shareholders' equity figures were negative across all years, ranging from -$5,846 million in 2020 to -$14,076 million in 2024. The negative values and increasing absolute magnitude suggest significant adjustments, possibly related to goodwill impairment or other deductions, that reduce the equity base when adjusted.

Financial Leverage

The reported financial leverage ratio fluctuated slightly but generally remained around the 3.0 mark, moving from 3.01 in 2020 to 3.22 in 2024. The peak ratio occurred in 2024, indicating a mild increase in leverage and potentially higher reliance on debt or liabilities relative to equity. No adjusted financial leverage data was provided, limiting further comparability in this regard.

Overall Analysis

The data indicates robust growth in both reported and adjusted total assets, demonstrating expansion in the company's asset base over time. The divergence between reported and adjusted shareholders’ equity, with the latter consistently negative and deteriorating, suggests significant goodwill or intangible asset adjustments impacting the net equity calculations on an adjusted basis. The steady reported financial leverage ratio near 3 suggests a maintained gearing level throughout the period. The lack of adjusted financial leverage data prevents a full assessment of leverage when excluding goodwill or similar intangible assets.

The analysis of the financial data over the five-year period reveals several notable trends and patterns in shareholders' equity and return on equity (ROE).

Reported Shareholders’ Equity Attributable to UnitedHealth Group

There is a consistent upward trend in the reported shareholders’ equity from 2020 through 2024. The equity increased from US$65,491 million in 2020 to US$92,658 million in 2024, representing a significant growth. This indicates steady accumulation of net assets attributable to shareholders and suggests overall financial strengthening.

Adjusted Shareholders’ Equity Attributable to UnitedHealth Group

The adjusted shareholders’ equity values are negative throughout the period, fluctuating from -US$5,846 million in 2020 to -US$14,076 million in 2024. Despite some improvement between 2020 and 2021, the adjustment losses deepen notably in 2022 and remain substantially negative in subsequent years. This divergence from reported equity suggests considerable goodwill or other intangible asset adjustments negatively impacting equity on an adjusted basis.

Reported Return on Equity (ROE)

The reported ROE shows generally strong profitability with values above 23% from 2020 to 2023, peaking at 25.87% in 2022. However, a noteworthy decrease to 15.55% is observed in 2024, indicating a reduced efficiency in generating profits from shareholders’ equity. This decline could evoke concerns about earnings volatility or rising expenses impacting returns.

Adjusted Return on Equity (ROE)

Data for adjusted ROE is not available, preventing direct analysis of profitability on an adjusted equity basis. The absence of this data limits comprehensive evaluation of the effects of goodwill and other adjustments on the company’s return metrics.

In summary, the reported financial figures present a picture of growing equity and strong but recently weakening profitability. The persistent negative adjusted equity values highlight the material impact of intangible asset adjustments, which could affect the assessment of net asset quality. The sharp decline in reported ROE in the latest year warrants further inquiry into its underlying causes to accurately gauge future performance potential.

Total Assets

The reported total assets demonstrate a consistent upward trajectory across the five-year period, increasing from US$197,289 million in 2020 to US$298,278 million by the end of 2024. This reflects a compound growth pattern suggesting expansion or acquisition activity. Similarly, the goodwill adjusted total assets follow a parallel rising trend, moving from US$125,952 million in 2020 to US$191,544 million in 2024, indicating underlying asset growth excluding the impact of goodwill adjustments.

Return on Assets (ROA)

The reported ROA remains relatively stable from 2020 through 2023, maintaining values around 7.81% to 8.19%, signaling steady profitability in relation to reported assets. However, a notable decline occurs in 2024 with ROA dropping significantly to 4.83%, which may indicate reduced profitability or increased asset base diluting return.

Adjusted ROA

Adjusted ROA, which excludes goodwill impacts, exhibits a similar stable pattern from 2020 to 2023, ranging from 12.23% to 13.21%, at consistently higher levels than the reported ROA, signifying stronger operational efficiency when goodwill is excluded. In 2024, adjusted ROA also declines markedly to 7.52%, mirroring the trend observed in reported ROA but maintaining a higher margin, highlighting sustained profitability challenges though less severe after adjustment.

Summary Insights

The data reveals sustained asset growth both reported and adjusted over the observed periods, indicating expansion efforts. Profitability, as measured by ROA metrics, remained stable until a pronounced decline in 2024, suggesting possible operational or market challenges. The adjusted ROA consistently surpasses reported ROA, illustrating the influence of goodwill on profitability measures. The simultaneous decrease in both ROA indicators in 2024 warrants further investigation to understand contributing factors such as increased asset base, margin compression, or external economic impacts.