Common-Size Income Statement
UnitedHealth Group Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends between 2021 and 2025. Revenues are consistently composed of approximately 80% premiums, 12% products, and 9% services, with minor fluctuations annually. However, significant shifts are observed in profitability and cost structures over the period.
- Revenue Composition
- Premiums consistently represent the largest portion of revenue, fluctuating between 79.13% and 79.83% over the five-year period. Products and Services demonstrate more variability, with Products increasing from 11.62% to 12.71% in 2024 before decreasing to 12.03% in 2025. Services show a similar pattern, peaking at 9.28% in 2023 and declining to 8.57% in 2025.
- Cost of Revenues & Gross Profit
- Cost of revenues, as a percentage of revenues, steadily increased from -75.91% in 2022 to -82.19% in 2025. This increase is primarily driven by a substantial rise in medical costs, which moved from -65.45% to -70.78% over the same period. Consequently, gross profit margin declined consistently from 24.09% in 2022 to 17.81% in 2025. This indicates increasing pressure on profitability from rising costs.
- Operating Performance
- Earnings from operations decreased significantly from 8.83% in 2022 to 4.27% in 2025. While operating costs remained relatively stable as a percentage of revenue (around -14%), the decline in gross profit directly impacted operating income. Investment and other income showed some fluctuation, peaking at 1.32% in 2024, but did not offset the decline in gross profit.
- Net Profitability
- Net earnings attributable to UnitedHealth Group common shareholders followed a similar downward trend, decreasing from 6.25% in 2022 to 2.72% in 2025. The provision for income taxes decreased as a percentage of revenue, from -1.77% to -0.43%, but this reduction was insufficient to mitigate the impact of lower earnings before income taxes. A loss on the sale of a subsidiary and subsidiaries held for sale impacted 2024 results, representing -2.10% of revenues.
- Expense Management
- Depreciation and amortization remained relatively consistent as a percentage of revenues, decreasing slightly from -1.09% to -0.98%. Interest expense also showed a modest increase, moving from -0.65% to -0.99% in 2024 before decreasing slightly to -0.90% in 2025. These expense items did not appear to be major drivers of the overall decline in profitability.
In summary, the period demonstrates a consistent revenue structure coupled with increasing costs, particularly medical costs, leading to a significant decline in gross profit and, subsequently, net earnings. While some expense items remained stable, the rising cost of revenues is the primary factor impacting the company’s profitability.
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