UnitedHealth Group Inc. (NYSE:UNH)

The analysis of the financial ratios over the five-year period reveals several noteworthy trends and shifts in the company’s operational efficiency, liquidity, leverage, and profitability.

Total Asset Turnover

The reported total asset turnover ratio remains relatively stable, fluctuating slightly between 1.3 and 1.34, indicating consistent efficiency in utilizing assets to generate revenue. The adjusted total asset turnover mirrors this pattern, with minor variations maintaining a level between 1.28 and 1.33.

Current Ratio

Both reported and adjusted current ratios show a gradual improvement from 2020 through 2024, rising from 0.74 to 0.83 and from 0.8 to 0.89 respectively. This increase suggests enhanced short-term liquidity and a stronger ability to cover current liabilities with current assets over time.

Debt to Equity

The reported debt to equity ratio exhibits an overall upward trend, increasing from 0.66 in 2020 to 0.83 in 2024, after a peak in 2022. Similarly, the adjusted ratio rises from 0.61 to 0.72 during the same period, reflecting a growing reliance on debt financing relative to equity. However, fluctuations mid-period indicate some variability in financial structure management.

Debt to Capital

The debt to capital ratios also follow an ascending trajectory, with reported values increasing from 0.40 to 0.45 and adjusted values from 0.38 to 0.42 by 2024. This signals a gradual increase in the proportion of debt within the overall capital base.

Financial Leverage

Both reported and adjusted financial leverage ratios demonstrate moderate growth, with reported leverage moving from 3.01 to 3.22 and adjusted from 2.53 to 2.66. This suggests a slight increase in the use of borrowed funds to amplify returns, although the adjustment indicates more conservative leverage figures.

Net Profit Margin

The net profit margin, both reported and adjusted, shows relative stability with minor fluctuations through 2023, but a notable decline in 2024 (reported margin falls to 3.65% and adjusted to 4.89%). This sharp drop points to decreased profitability or increased costs impacting net income in the most recent year.

Return on Equity (ROE)

Reported ROE rises steadily from 23.52% to a peak of 25.87% in 2022 before decreasing to 15.55% in 2024. The adjusted ROE follows a similar pattern but with lower values overall, peaking later in 2023 at 23.36% before dropping to 17.03%. This pattern aligns with profitability trends, indicating lower returns to shareholders in the latest period despite earlier gains.

Return on Assets (ROA)

Reported ROA remains consistent around 7.8–8.2% until 2023, then falls to 4.83% in 2024. The adjusted ROA shows more variation, rising notably to 9.15% in 2023 before decreasing to 6.39% in 2024. This fluctuation suggests some variability in asset efficiency and profitability over time, with a weakening in asset returns most recently.

Overall, the data reflects stable operational efficiency and liquidity improvements, alongside increasing leverage. Profitability measures indicate strong performance until 2023, followed by a marked decline in 2024, which merits additional investigation concerning the underlying causes, such as market conditions or cost structures.

The financial data reveals continuous growth in revenues and total assets over the five-year period. Revenues from customers increased consistently from US$255,639 million in 2020 to US$395,076 million in 2024, indicating a strong upward trend in the company's top line. This represents an approximate 54.6% increase over the period.

Total assets also showed a steady upward trajectory, rising from US$197,289 million in 2020 to US$298,278 million in 2024. This growth in assets aligns with the expansion in revenues, reflecting ongoing investment and asset accumulation by the company. The increase in assets over the period amounts to about 51.2%.

The reported total asset turnover ratio, which measures the efficiency of asset use to generate revenues, has remained relatively stable, fluctuating slightly between 1.3 and 1.34. Starting at 1.3 in 2020, the ratio peaked around 1.34 in 2021 and 2023 before settling at 1.32 in 2024. This stability suggests consistent operational efficiency in generating revenue relative to asset base.

In parallel, adjusted revenues and adjusted total assets exhibit similar increasing trends, with adjusted revenues rising from US$255,859 million in 2020 to US$395,038 million in 2024, and adjusted assets growing from US$199,326 million to US$302,127 million in the same timeframe. These adjusted figures slightly exceed the reported values, possibly reflecting refined calculations or adjustments for accounting considerations.

The adjusted total asset turnover ratio parallels the reported figures, fluctuating between 1.28 and 1.33 with minor year-to-year variations. This consistency implies that the adjusted operational metrics uphold the same efficiency narrative as the reported data, reinforcing the observation of steady asset utilization in revenue generation over the period.

Revenue Trend

Consistent and significant growth from 2020 to 2024, indicating expanding market reach or increased sales volume.

Asset Growth

Substantial increase in total assets supporting revenue growth, reflecting ongoing investments and resource expansion.

Asset Turnover Ratio

Relatively stable ratios near 1.3, demonstrating consistent efficiency in asset use to generate revenue without significant deterioration or improvement.

Adjusted Figures

Adjusted revenues and assets follow similar upward trends with corresponding asset turnover ratios, confirming robustness of financial performance measurements.

The financial data reveals a consistent upward trend in both current assets and current liabilities over the five-year period. Current assets increased from $53,718 million in 2020 to $85,779 million in 2024, reflecting growth in resource availability. Similarly, current liabilities rose from $72,420 million to $103,769 million during the same timeframe, indicating expanding obligations.

The reported current ratio, which is the quotient of current assets over current liabilities, shows a generally stable pattern with a slight improvement. Starting at 0.74 in 2020, it experienced a small rise to 0.79 in 2021, a minor dip to 0.77 in 2022, before recovering to 0.83 by 2024. This suggests a relatively consistent liquidity position with incremental enhancement in the ability to cover short-term liabilities.

Adjusted figures provide a more refined view, where adjusted current assets and adjusted current liabilities both increased substantially, from $55,755 million to $89,628 million for assets, and $69,578 million to $100,452 million for liabilities across the observed period. The adjusted current ratio improved from 0.80 in 2020 to 0.89 in 2024, indicating a more robust liquidity position after adjustments, with a gradual strengthening of short-term financial health.

Current Assets

Demonstrated strong growth over five years, increasing by approximately 59.6%, reflecting effective asset accumulation or improved working capital management.

Current Liabilities

Increased by roughly 43.3%, tracking the growth in current assets but at a somewhat slower rate, which supports a modest improvement in liquidity.

Reported Current Ratio

Remained below 1 but improved from 0.74 to 0.83, indicating incremental progress in the company's capacity to meet short-term debts with current assets.

Adjusted Current Assets and Liabilities

Both increased consistently, with assets growing at a slightly higher pace than liabilities, contributing to an enhanced adjusted current ratio.

Adjusted Current Ratio

Showed a steady rising trend from 0.80 to 0.89, suggesting that underlying financial adjustments provide a more optimistic perspective on liquidity and short-term solvency.

Overall, the data displays ongoing growth in both assets and liabilities, with consistent yet moderate improvements in liquidity ratios. The adjusted ratios imply a somewhat stronger financial position than the reported figures, suggesting that the company’s operational adjustments or reclassifications contribute positively to its financial health over the period analyzed.

Total Debt

The total debt of the company has shown a consistent upward trajectory over the five-year period. It increased from US$43,467 million in 2020 to US$76,904 million in 2024, representing a significant rise of approximately 77%. The most substantial annual increase occurred between 2023 and 2024.

Shareholders’ Equity Attributable to UnitedHealth Group

Shareholders’ equity has also displayed steady growth across the analyzed years. Starting from US$65,491 million in 2020, it rose to US$92,658 million by 2024. This increase reflects a compound upward trend, with particularly notable increments observed in 2023 and 2024.

Reported Debt to Equity Ratio

The reported debt to equity ratio fluctuated, initially declining slightly from 0.66 in 2020 to 0.64 in 2021, then increasing to 0.74 in 2022. It decreased somewhat to 0.7 in 2023 before rising again to 0.83 in 2024. This pattern indicates an overall increase in leverage, particularly evident in the most recent year.

Adjusted Total Debt

Adjusted total debt figures follow a similar trend to reported total debt but are consistently higher. The adjusted debt rose from US$47,914 million in 2020 to US$81,793 million in 2024, representing an increase of approximately 71%. Annual increases were steady, with the highest increase noted in the final year.

Adjusted Total Equity

Adjusted total equity increased steadily from US$78,785 million in 2020 to US$113,377 million in 2024. This growth indicates strengthening capital base and suggests retention of earnings or capital injections over the period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio showed minor fluctuations but generally increased from 0.61 in 2020 to 0.72 in 2024. The ratio dipped to 0.6 in 2021 and rose to 0.66 in 2022, followed by a slight decrease in 2023 before rising again in 2024. This suggests a moderate growth in leverage based on adjusted figures, aligning with the rising debt levels.

The financial data reveals a consistent upward trend in both total debt and total capital over the five-year period. Total debt increased from US$43,467 million in 2020 to US$76,904 million in 2024, representing a substantial growth. Similarly, total capital rose from US$108,958 million to US$169,562 million, indicating expansion in the company's financing base.

The reported debt to capital ratio exhibited moderate fluctuations, beginning at 0.40 in 2020, decreasing slightly to 0.39 in 2021, then increasing to 0.43 in 2022. It dipped again to 0.41 in 2023 before rising to 0.45 in 2024. This pattern suggests that debt has generally increased at a somewhat faster pace than capital, especially noticeable in the last year.

When considering adjusted figures, adjusted total debt followed a similar growth path, moving from US$47,914 million in 2020 to US$81,793 million in 2024. Adjusted total capital also showed an upward trajectory, increasing from US$126,699 million to US$195,170 million during the same period.

The adjusted debt to capital ratio remained relatively stable from 2020 through 2021, around 0.38 to 0.37, then rose moderately to 0.40 in 2022. It decreased slightly to 0.38 in 2023 before increasing again to 0.42 in 2024. This trend mirrors the movements in the reported ratio but remains consistently lower, reflecting adjustments in debt and capital calculations that affect leverage assessment.

Overall, the data indicates a growing leverage position characterized by increasing debt levels, albeit supported by growing capital. The ratios suggest a moderate reliance on debt financing, with slight increases in leverage in the most recent years. This pattern may signal strategic financial management balancing growth capital needs with cautious control of debt exposure.

Over the analyzed period from the end of 2020 to the end of 2024, the company exhibited a consistent upward trend in its total assets. Specifically, total assets increased steadily from US$197.3 billion to US$298.3 billion, indicating significant growth in the company's asset base over the five-year span.

Shareholders' equity attributable to the company also showed a positive trajectory. The equity rose from US$65.5 billion at the end of 2020 to US$92.7 billion by the end of 2024. This growth highlights an improvement in the company's net worth and capital base, supporting financial stability and the potential for future investments.

Reported Financial Leverage

The reported financial leverage experienced moderate fluctuations. Starting at 3.01 in 2020, it slightly declined to 2.96 in 2021, then increased to 3.16 in 2022. Subsequently, it reduced to 3.08 in 2023 before rising again to 3.22 in 2024. These variations suggest changes in the company's debt relative to equity, with periods of increased leverage followed by partial deleveraging.

Adjusted Total Assets

The adjusted total assets mirrored the upward trend of reported total assets but showed higher absolute values. Beginning at US$199.3 billion in 2020, the figure reached US$302.1 billion by 2024. This adjustment possibly reflects a revaluation or inclusion of additional asset components, enhancing the comprehensive assessment of the asset base.

Adjusted Total Equity

The adjusted total equity demonstrated consistent growth, increasing from US$78.8 billion in 2020 to US$113.4 billion in 2024. This increase was more pronounced than the growth in reported equity, suggesting adjustments that recognize additional equity contributions or retained earnings not fully captured in reported figures.

Adjusted Financial Leverage

The adjusted financial leverage remained relatively stable with slight upward movement. It started at 2.53 in 2020, gradually increased to 2.66 in 2024, but experienced minimal fluctuation in intermediate years. This stability indicates a consistent leverage profile when considering adjustments, with modest increases reflecting a balanced approach to financing growth through debt.

Overall, the company demonstrated strong asset and equity growth throughout the period. While reported financial leverage showed some variability, adjusted leverage maintained relative stability, suggesting prudent financial management when considering comprehensive balance sheet adjustments. The continuing increase in both asset and equity bases underscores a solid foundation for ongoing expansion or investment activities.

The financial data reveals several important trends over the five-year period analyzed. Revenues, both reported and adjusted, exhibit consistent growth each year, indicating a steady expansion in the company's business activities and customer base. Specifically, reported revenues increased from approximately 255.6 billion US dollars in 2020 to nearly 395.1 billion US dollars by 2024, reflecting a strong upward trajectory.

Net earnings attributable to common shareholders show a rising trend from 2020 through 2023, peaking at just over 22.3 billion US dollars, before declining sharply to around 14.4 billion US dollars in 2024. This decline in the latest year represents a significant reduction in profitability on a reported basis.

Adjusted net earnings, which likely exclude certain non-recurring items, follow a somewhat different pattern. Although there is an increase from 16.4 billion US dollars in 2020 to a peak of 25.3 billion US dollars in 2023, adjusted earnings also decrease in 2024 but remain higher than the 2020 baseline at 19.3 billion US dollars. The divergence between reported and adjusted net earnings in some years suggests that one-time factors or accounting adjustments may have materially impacted earnings.

Profit Margins

The reported net profit margin remains relatively stable from 2020 to 2023, fluctuating marginally between 6.03% and 6.25%, before decreasing substantially to 3.65% in 2024. This indicates that despite revenue growth, profitability relative to revenues diminished notably in the most recent year.

The adjusted net profit margin shows more variability, dropping from 6.41% in 2020 to 5.59% in 2021 and further to 5.52% in 2022. It then recovers significantly to 6.88% in 2023 before decreasing again to 4.89% in 2024. This pattern suggests fluctuating operational performance and cost management across these years, with a marked decline in efficiency in 2024.

Overall, the data indicates strong revenue growth accompanied by rising earnings through 2023, followed by a notable decline in profitability and net earnings in 2024. The adjusted figures suggest that some of the 2024 decline may be impacted by exceptional items. The decrease in profit margins in the latest year signals potential challenges in cost control or changes in business conditions that affected the company's ability to convert revenue growth into proportional net earnings.

The financial data over the period indicates several notable trends in profitability, equity, and returns.

Net earnings attributable to common shareholders

Net earnings showed a positive growth trend from 2020 through 2023, increasing from 15,403 million USD in 2020 to a peak of 22,381 million USD in 2023. However, in 2024, there was a significant decline to 14,405 million USD, representing a sharp decrease from the prior year's high.

Shareholders’ equity attributable to UnitedHealth Group

Shareholders’ equity consistently increased throughout the five-year span, rising steadily from 65,491 million USD in 2020 to 92,658 million USD in 2024. This upward trend reflects continued accumulation of equity capital.

Reported Return on Equity (ROE)

The reported ROE maintained strong performance from 2020 to 2023, fluctuating slightly but remaining above 23%, and reaching a peak of 25.87% in 2022. In 2024, the ROE declined notably to 15.55%, indicating a reduction in net earnings efficiency relative to equity.

Adjusted Net Earnings

Adjusted net earnings displayed some variability. Starting at 16,404 million USD in 2020, the figure dropped in 2021 to 15,931 million USD, then rebounded to 17,824 million USD in 2022. A substantial increase occurred in 2023, reaching 25,319 million USD, followed by a decrease to 19,313 million USD in 2024. The adjusted figures generally parallel the trend in reported net earnings but with somewhat more pronounced fluctuations.

Adjusted Total Equity

Adjusted total equity consistently increased each year, rising from 78,785 million USD in 2020 to 113,377 million USD by 2024, reflecting a stable growth in the company's equity base after adjustments.

Adjusted Return on Equity (ROE)

The adjusted ROE started at 20.82% in 2020, decreased to around 18.9% in 2021 and 2022, before improving significantly to 23.36% in 2023. In 2024, it declined to 17.03%, indicating a decrease in adjusted earnings efficiency relative to adjusted equity, similar to the trend seen in the reported ROE.

Overall, the data exhibits a pattern of growing equity and generally strong returns through 2023, with 2024 showing a noticeable decline in profitability metrics despite continued growth in the equity base. This suggests a potential weakening in earnings generation or margin pressures during the most recent period, warranting further investigation into underlying operational or market factors for that year.

The financial data presents a mixed performance across the analyzed periods, with notable fluctuations in earnings and returns relative to assets.

Net Earnings and Adjusted Net Earnings

Net earnings attributable to common shareholders showed an increasing trend from 2020 to 2023, rising from 15,403 million US$ to 22,381 million US$. However, in 2024, there is a significant decline to 14,405 million US$, which marks a sharp reversal from previous growth. Adjusted net earnings similarly increased from 16,404 million US$ in 2020 to a peak of 25,319 million US$ in 2023 before decreasing to 19,313 million US$ in 2024. This pattern indicates an overall growth phase that was disrupted in the latest year, albeit the adjusted figures suggest a less drastic decline compared to reported net earnings.

Total Assets and Adjusted Total Assets

Total assets steadily increased each year, from 197,289 million US$ in 2020 to 298,278 million US$ in 2024, indicating ongoing asset expansion. Adjusted total assets followed a similar upward trajectory, growing from 199,326 million US$ to 302,127 million US$ over the same period. This consistent growth in total assets signals continued investment and accumulation of resources over time.

Return on Assets (ROA)

The reported ROA improved slightly between 2020 and 2022, moving from 7.81% to 8.19%, and remained nearly stable at 8.18% in 2023. However, in 2024, reported ROA dropped notably to 4.83%, correlating with the decline in net earnings despite asset growth. Adjusted ROA presents a less consistent pattern: it decreased from 8.23% in 2020 to 7.19% in 2022, then rose sharply to 9.15% in 2023 before falling to 6.39% in 2024. This suggests volatility in profitability relative to adjusted asset levels, with peaks and troughs affecting overall performance analysis.

Overall Insights

The company experienced steady asset growth throughout the period analyzed, indicating an expanding asset base and possibly ongoing strategic investments or acquisitions. Profitability measures showed growth until 2023, with a significant decline in 2024. Both reported and adjusted earnings declined in the final year, with the reported figures showing a more pronounced drop. The decline in ROA percentages in 2024 reflects this earnings decrease despite continued asset growth, suggesting challenges in generating returns from the larger asset base. These trends may warrant closer examination of operational efficiency, cost management, and market factors impacting earnings in the latest period.