Stock Analysis on Net
Stock Analysis on Net
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UnitedHealth Group Inc. (NYSE:UNH)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

UnitedHealth Group Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 1.30 1.38 1.48 1.44 1.50
Adjusted 1.28 1.37 1.44 1.40 1.46
Liquidity Ratio
Current Ratio
Reported 0.74 0.69 0.73 0.73 0.69
Adjusted 0.80 0.74 0.79 0.79 0.74
Solvency Ratios
Debt to Equity
Reported 0.66 0.71 0.71 0.66 0.86
Adjusted 0.61 0.65 0.64 0.60 0.76
Debt to Capital
Reported 0.40 0.41 0.41 0.40 0.46
Adjusted 0.38 0.39 0.39 0.37 0.43
Financial Leverage
Reported 3.01 3.02 2.94 2.91 3.21
Adjusted 2.53 2.53 2.52 2.48 2.74
Profitability Ratios
Net Profit Margin
Reported 6.03% 5.76% 5.33% 5.28% 3.81%
Adjusted 6.41% 6.42% 4.96% 5.15% 4.40%
Return on Equity (ROE)
Reported 23.52% 24.02% 23.19% 22.10% 18.33%
Adjusted 20.82% 22.33% 17.92% 17.95% 17.64%
Return on Assets (ROA)
Reported 7.81% 7.96% 7.87% 7.59% 5.71%
Adjusted 8.23% 8.81% 7.12% 7.23% 6.43%

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. UnitedHealth Group Inc.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. UnitedHealth Group Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. UnitedHealth Group Inc.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. UnitedHealth Group Inc.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
UnitedHealth Group Inc.’s adjusted financial leverage ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. UnitedHealth Group Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. UnitedHealth Group Inc.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. UnitedHealth Group Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

UnitedHealth Group Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Revenues 255,639  240,269  224,871  200,136  184,012 
Total assets 197,289  173,889  152,221  139,058  122,810 
Activity Ratio
Total asset turnover1 1.30 1.38 1.48 1.44 1.50
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenues2 255,859  240,495  224,998  200,437  183,838 
Adjusted total assets3 199,326  175,267  156,737  142,810  125,779 
Activity Ratio
Adjusted total asset turnover4 1.28 1.37 1.44 1.40 1.46

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Total asset turnover = Revenues ÷ Total assets
= 255,639 ÷ 197,289 = 1.30

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 255,859 ÷ 199,326 = 1.28

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. UnitedHealth Group Inc.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 53,718  42,634  38,692  37,084  33,879 
Current liabilities 72,420  61,782  53,209  50,463  49,252 
Liquidity Ratio
Current ratio1 0.74 0.69 0.73 0.73 0.69
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 55,755  44,012  39,906  38,165  34,802 
Adjusted current liabilities3 69,578  59,160  50,813  48,194  47,284 
Liquidity Ratio
Adjusted current ratio4 0.80 0.74 0.79 0.79 0.74

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 53,718 ÷ 72,420 = 0.74

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 55,755 ÷ 69,578 = 0.80

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. UnitedHealth Group Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 43,467  40,678  36,554  31,692  32,970 
Shareholders’ equity attributable to UnitedHealth Group 65,491  57,616  51,696  47,776  38,274 
Solvency Ratio
Debt to equity1 0.66 0.71 0.71 0.66 0.86
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 47,914  44,637  39,856  34,363  35,016 
Adjusted total equity3 78,785  69,155  62,311  57,554  45,841 
Solvency Ratio
Adjusted debt to equity4 0.61 0.65 0.64 0.60 0.76

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to UnitedHealth Group
= 43,467 ÷ 65,491 = 0.66

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 47,914 ÷ 78,785 = 0.61

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. UnitedHealth Group Inc.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 43,467  40,678  36,554  31,692  32,970 
Total capital 108,958  98,294  88,250  79,468  71,244 
Solvency Ratio
Debt to capital1 0.40 0.41 0.41 0.40 0.46
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 47,914  44,637  39,856  34,363  35,016 
Adjusted total capital3 126,699  113,792  102,167  91,917  80,857 
Solvency Ratio
Adjusted debt to capital4 0.38 0.39 0.39 0.37 0.43

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 43,467 ÷ 108,958 = 0.40

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 47,914 ÷ 126,699 = 0.38

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. UnitedHealth Group Inc.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 197,289  173,889  152,221  139,058  122,810 
Shareholders’ equity attributable to UnitedHealth Group 65,491  57,616  51,696  47,776  38,274 
Solvency Ratio
Financial leverage1 3.01 3.02 2.94 2.91 3.21
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 199,326  175,267  156,737  142,810  125,779 
Adjusted total equity3 78,785  69,155  62,311  57,554  45,841 
Solvency Ratio
Adjusted financial leverage4 2.53 2.53 2.52 2.48 2.74

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to UnitedHealth Group
= 197,289 ÷ 65,491 = 3.01

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 199,326 ÷ 78,785 = 2.53

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
UnitedHealth Group Inc.’s adjusted financial leverage ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to UnitedHealth Group common shareholders 15,403  13,839  11,986  10,558  7,017 
Revenues 255,639  240,269  224,871  200,136  184,012 
Profitability Ratio
Net profit margin1 6.03% 5.76% 5.33% 5.28% 3.81%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 16,404  15,441  11,167  10,331  8,085 
Adjusted revenues3 255,859  240,495  224,998  200,437  183,838 
Profitability Ratio
Adjusted net profit margin4 6.41% 6.42% 4.96% 5.15% 4.40%

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
Net profit margin = 100 × Net earnings attributable to UnitedHealth Group common shareholders ÷ Revenues
= 100 × 15,403 ÷ 255,639 = 6.03%

2 Adjusted net earnings. See details »

3 Adjusted revenues. See details »

4 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted revenues
= 100 × 16,404 ÷ 255,859 = 6.41%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. UnitedHealth Group Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to UnitedHealth Group common shareholders 15,403  13,839  11,986  10,558  7,017 
Shareholders’ equity attributable to UnitedHealth Group 65,491  57,616  51,696  47,776  38,274 
Profitability Ratio
ROE1 23.52% 24.02% 23.19% 22.10% 18.33%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 16,404  15,441  11,167  10,331  8,085 
Adjusted total equity3 78,785  69,155  62,311  57,554  45,841 
Profitability Ratio
Adjusted ROE4 20.82% 22.33% 17.92% 17.95% 17.64%

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
ROE = 100 × Net earnings attributable to UnitedHealth Group common shareholders ÷ Shareholders’ equity attributable to UnitedHealth Group
= 100 × 15,403 ÷ 65,491 = 23.52%

2 Adjusted net earnings. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total equity
= 100 × 16,404 ÷ 78,785 = 20.82%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. UnitedHealth Group Inc.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to UnitedHealth Group common shareholders 15,403  13,839  11,986  10,558  7,017 
Total assets 197,289  173,889  152,221  139,058  122,810 
Profitability Ratio
ROA1 7.81% 7.96% 7.87% 7.59% 5.71%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 16,404  15,441  11,167  10,331  8,085 
Adjusted total assets3 199,326  175,267  156,737  142,810  125,779 
Profitability Ratio
Adjusted ROA4 8.23% 8.81% 7.12% 7.23% 6.43%

Based on: 10-K (filing date: 2021-03-01), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08).

1 2020 Calculation
ROA = 100 × Net earnings attributable to UnitedHealth Group common shareholders ÷ Total assets
= 100 × 15,403 ÷ 197,289 = 7.81%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 16,404 ÷ 199,326 = 8.23%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. UnitedHealth Group Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.