Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

Return on Capital (ROC)

Microsoft Excel

Return on Invested Capital (ROIC)

UnitedHealth Group Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 26,672 22,615 18,910 18,059 16,327
Invested capital2 182,841 165,347 139,922 130,513 117,370
Performance Ratio
ROIC3 14.59% 13.68% 13.51% 13.84% 13.91%
Benchmarks
ROIC, Competitors4
Abbott Laboratories 8.87% 10.96% 11.30% 8.01% 6.47%
Cigna Group 5.63% 8.53% 6.88% 9.84% 6.50%
CVS Health Corp. 7.17% 3.13% 7.01% 6.63% 5.97%
Danaher Corp. 3.94% 8.76% 9.01% 7.43% 3.57%
Elevance Health Inc. 9.35% 10.17% 11.14% 8.67% 9.75%
Humana Inc. 9.02% 10.50% 10.35% 17.73% 16.04%
Intuitive Surgical Inc. 22.30% 22.01% 37.63% 25.62% 42.29%
Medtronic PLC 5.89% 7.02% 5.59% 6.20% 7.51%

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 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 26,672 ÷ 182,841 = 14.59%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. UnitedHealth Group Inc. ROIC improved from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

UnitedHealth Group Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 14.59% = 9.14% × 2.01 × 79.36%
Dec 31, 2022 13.68% = 9.13% × 1.95 × 76.75%
Dec 31, 2021 13.51% = 8.33% × 2.04 × 79.68%
Dec 31, 2020 13.84% = 9.15% × 1.96 × 77.12%
Dec 31, 2019 13.91% = 8.41% × 2.05 × 80.71%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the decrease in effective cash tax rate (CTR).


Operating Profit Margin (OPM)

UnitedHealth Group Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 26,672 22,615 18,910 18,059 16,327
Add: Cash operating taxes2 6,936 6,851 4,823 5,358 3,902
Net operating profit before taxes (NOPBT) 33,608 29,466 23,733 23,417 20,229
 
Revenues, customers 367,533 322,132 285,273 255,639 240,269
Add: Increase (decrease) in unearned revenues 280 504 (271) 220 226
Adjusted revenues, customers 367,813 322,636 285,002 255,859 240,495
Profitability Ratio
OPM3 9.14% 9.13% 8.33% 9.15% 8.41%
Benchmarks
OPM, Competitors4
Abbott Laboratories 16.84% 20.24% 20.37% 16.05% 14.97%
Cigna Group 3.57% 5.39% 4.69% 7.72% 5.38%
CVS Health Corp. 3.82% 2.45% 4.32% 4.79% 4.69%
Danaher Corp. 21.44% 27.12% 27.65% 23.43% 18.74%
Elevance Health Inc. 5.39% 5.61% 6.54% 6.03% 6.47%
Humana Inc. 3.64% 4.33% 4.49% 6.64% 5.73%
Intuitive Surgical Inc. 28.14% 26.19% 33.56% 28.14% 34.15%
Medtronic PLC 19.63% 19.15% 16.48% 17.88% 22.11%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues, customers
= 100 × 33,608 ÷ 367,813 = 9.14%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. UnitedHealth Group Inc. OPM improved from 2021 to 2022 and from 2022 to 2023.

Turnover of Capital (TO)

UnitedHealth Group Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenues, customers 367,533 322,132 285,273 255,639 240,269
Add: Increase (decrease) in unearned revenues 280 504 (271) 220 226
Adjusted revenues, customers 367,813 322,636 285,002 255,859 240,495
 
Invested capital1 182,841 165,347 139,922 130,513 117,370
Efficiency Ratio
TO2 2.01 1.95 2.04 1.96 2.05
Benchmarks
TO, Competitors3
Abbott Laboratories 0.67 0.71 0.69 0.57 0.55
Cigna Group 2.26 2.09 1.90 1.70 1.62
CVS Health Corp. 2.64 2.60 2.22 1.96 1.83
Danaher Corp. 0.30 0.40 0.40 0.34 0.31
Elevance Health Inc. 2.44 2.33 2.14 2.13 1.86
Humana Inc. 3.48 3.18 2.70 3.48 3.41
Intuitive Surgical Inc. 1.00 1.16 1.27 0.98 1.35
Medtronic PLC 0.44 0.46 0.42 0.41 0.42

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 Invested capital. See details »

2 2023 Calculation
TO = Adjusted revenues, customers ÷ Invested capital
= 367,813 ÷ 182,841 = 2.01

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. UnitedHealth Group Inc. TO deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Effective Cash Tax Rate (CTR)

UnitedHealth Group Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 26,672 22,615 18,910 18,059 16,327
Add: Cash operating taxes2 6,936 6,851 4,823 5,358 3,902
Net operating profit before taxes (NOPBT) 33,608 29,466 23,733 23,417 20,229
Tax Rate
CTR3 20.64% 23.25% 20.32% 22.88% 19.29%
Benchmarks
CTR, Competitors4
Abbott Laboratories 21.67% 23.97% 20.05% 12.92% 21.15%
Cigna Group 30.27% 24.44% 23.01% 24.93% 25.68%
CVS Health Corp. 29.07% 50.90% 27.09% 29.36% 30.33%
Danaher Corp. 39.60% 19.69% 18.58% 7.07% 38.19%
Elevance Health Inc. 28.75% 22.11% 20.37% 32.42% 18.95%
Humana Inc. 28.91% 23.74% 14.62% 23.28% 17.80%
Intuitive Surgical Inc. 20.94% 27.40% 11.76% 6.67% 8.23%
Medtronic PLC 32.28% 19.53% 18.59% 14.72% 19.30%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 6,936 ÷ 33,608 = 20.64%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. UnitedHealth Group Inc. CTR increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.