Stock Analysis on Net
Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

UnitedHealth Group Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 25.22% = 8.18% × 3.08
Sep 30, 2023 25.67% = 7.69% × 3.34
Jun 30, 2023 25.63% = 7.53% × 3.40
Mar 31, 2023 25.46% = 7.30% × 3.49
Dec 31, 2022 25.87% = 8.19% × 3.16
Sep 30, 2022 26.03% = 7.99% × 3.26
Jun 30, 2022 25.07% = 7.93% × 3.16
Mar 31, 2022 23.98% = 7.89% × 3.04
Dec 31, 2021 24.09% = 8.15% × 2.96
Sep 30, 2021 21.95% = 7.24% × 3.03
Jun 30, 2021 21.03% = 6.90% × 3.05
Mar 31, 2021 25.42% = 8.23% × 3.09
Dec 31, 2020 23.52% = 7.81% × 3.01
Sep 30, 2020 25.65% = 8.76% × 2.93
Jun 30, 2020 26.87% = 8.88% × 3.03
Mar 31, 2020 24.14% = 7.27% × 3.32
Dec 31, 2019 24.02% = 7.96% × 3.02
Sep 30, 2019 — = — × 3.16
Jun 30, 2019 — = — × 3.15
Mar 31, 2019 — = — × 3.12

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

UnitedHealth Group Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 25.22% = 6.09% × 1.34 × 3.08
Sep 30, 2023 25.67% = 6.09% × 1.26 × 3.34
Jun 30, 2023 25.63% = 6.11% × 1.23 × 3.40
Mar 31, 2023 25.46% = 6.21% × 1.18 × 3.49
Dec 31, 2022 25.87% = 6.25% × 1.31 × 3.16
Sep 30, 2022 26.03% = 6.21% × 1.29 × 3.26
Jun 30, 2022 25.07% = 5.99% × 1.32 × 3.16
Mar 31, 2022 23.98% = 5.91% × 1.33 × 3.04
Dec 31, 2021 24.09% = 6.06% × 1.34 × 2.96
Sep 30, 2021 21.95% = 5.56% × 1.30 × 3.03
Jun 30, 2021 21.03% = 5.37% × 1.29 × 3.05
Mar 31, 2021 25.42% = 6.46% × 1.27 × 3.09
Dec 31, 2020 23.52% = 6.03% × 1.30 × 3.01
Sep 30, 2020 25.65% = 6.66% × 1.31 × 2.93
Jun 30, 2020 26.87% = 6.94% × 1.28 × 3.03
Mar 31, 2020 24.14% = 5.63% × 1.29 × 3.32
Dec 31, 2019 24.02% = 5.76% × 1.38 × 3.02
Sep 30, 2019 — = — × — × 3.16
Jun 30, 2019 — = — × — × 3.15
Mar 31, 2019 — = — × — × 3.12

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

UnitedHealth Group Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 25.22% = 0.79 × 0.90 × 8.60% × 1.34 × 3.08
Sep 30, 2023 25.67% = 0.78 × 0.90 × 8.67% × 1.26 × 3.34
Jun 30, 2023 25.63% = 0.78 × 0.91 × 8.66% × 1.23 × 3.40
Mar 31, 2023 25.46% = 0.78 × 0.92 × 8.70% × 1.18 × 3.49
Dec 31, 2022 25.87% = 0.78 × 0.93 × 8.67% × 1.31 × 3.16
Sep 30, 2022 26.03% = 0.79 × 0.93 × 8.49% × 1.29 × 3.26
Jun 30, 2022 25.07% = 0.79 × 0.93 × 8.16% × 1.32 × 3.16
Mar 31, 2022 23.98% = 0.79 × 0.93 × 8.04% × 1.33 × 3.04
Dec 31, 2021 24.09% = 0.79 × 0.93 × 8.25% × 1.34 × 2.96
Sep 30, 2021 21.95% = 0.78 × 0.92 × 7.74% × 1.30 × 3.03
Jun 30, 2021 21.03% = 0.77 × 0.92 × 7.56% × 1.29 × 3.05
Mar 31, 2021 25.42% = 0.76 × 0.93 × 9.09% × 1.27 × 3.09
Dec 31, 2020 23.52% = 0.76 × 0.92 × 8.62% × 1.30 × 3.01
Sep 30, 2020 25.65% = 0.76 × 0.93 × 9.41% × 1.31 × 2.93
Jun 30, 2020 26.87% = 0.77 × 0.93 × 9.74% × 1.28 × 3.03
Mar 31, 2020 24.14% = 0.78 × 0.91 × 7.96% × 1.29 × 3.32
Dec 31, 2019 24.02% = 0.79 × 0.91 × 8.03% × 1.38 × 3.02
Sep 30, 2019 — = — × — × — × — × 3.16
Jun 30, 2019 — = — × — × — × — × 3.15
Mar 31, 2019 — = — × — × — × — × 3.12

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

UnitedHealth Group Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.18% = 6.09% × 1.34
Sep 30, 2023 7.69% = 6.09% × 1.26
Jun 30, 2023 7.53% = 6.11% × 1.23
Mar 31, 2023 7.30% = 6.21% × 1.18
Dec 31, 2022 8.19% = 6.25% × 1.31
Sep 30, 2022 7.99% = 6.21% × 1.29
Jun 30, 2022 7.93% = 5.99% × 1.32
Mar 31, 2022 7.89% = 5.91% × 1.33
Dec 31, 2021 8.15% = 6.06% × 1.34
Sep 30, 2021 7.24% = 5.56% × 1.30
Jun 30, 2021 6.90% = 5.37% × 1.29
Mar 31, 2021 8.23% = 6.46% × 1.27
Dec 31, 2020 7.81% = 6.03% × 1.30
Sep 30, 2020 8.76% = 6.66% × 1.31
Jun 30, 2020 8.88% = 6.94% × 1.28
Mar 31, 2020 7.27% = 5.63% × 1.29
Dec 31, 2019 7.96% = 5.76% × 1.38
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

UnitedHealth Group Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 8.18% = 0.79 × 0.90 × 8.60% × 1.34
Sep 30, 2023 7.69% = 0.78 × 0.90 × 8.67% × 1.26
Jun 30, 2023 7.53% = 0.78 × 0.91 × 8.66% × 1.23
Mar 31, 2023 7.30% = 0.78 × 0.92 × 8.70% × 1.18
Dec 31, 2022 8.19% = 0.78 × 0.93 × 8.67% × 1.31
Sep 30, 2022 7.99% = 0.79 × 0.93 × 8.49% × 1.29
Jun 30, 2022 7.93% = 0.79 × 0.93 × 8.16% × 1.32
Mar 31, 2022 7.89% = 0.79 × 0.93 × 8.04% × 1.33
Dec 31, 2021 8.15% = 0.79 × 0.93 × 8.25% × 1.34
Sep 30, 2021 7.24% = 0.78 × 0.92 × 7.74% × 1.30
Jun 30, 2021 6.90% = 0.77 × 0.92 × 7.56% × 1.29
Mar 31, 2021 8.23% = 0.76 × 0.93 × 9.09% × 1.27
Dec 31, 2020 7.81% = 0.76 × 0.92 × 8.62% × 1.30
Sep 30, 2020 8.76% = 0.76 × 0.93 × 9.41% × 1.31
Jun 30, 2020 8.88% = 0.77 × 0.93 × 9.74% × 1.28
Mar 31, 2020 7.27% = 0.78 × 0.91 × 7.96% × 1.29
Dec 31, 2019 7.96% = 0.79 × 0.91 × 8.03% × 1.38
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

UnitedHealth Group Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 6.09% = 0.79 × 0.90 × 8.60%
Sep 30, 2023 6.09% = 0.78 × 0.90 × 8.67%
Jun 30, 2023 6.11% = 0.78 × 0.91 × 8.66%
Mar 31, 2023 6.21% = 0.78 × 0.92 × 8.70%
Dec 31, 2022 6.25% = 0.78 × 0.93 × 8.67%
Sep 30, 2022 6.21% = 0.79 × 0.93 × 8.49%
Jun 30, 2022 5.99% = 0.79 × 0.93 × 8.16%
Mar 31, 2022 5.91% = 0.79 × 0.93 × 8.04%
Dec 31, 2021 6.06% = 0.79 × 0.93 × 8.25%
Sep 30, 2021 5.56% = 0.78 × 0.92 × 7.74%
Jun 30, 2021 5.37% = 0.77 × 0.92 × 7.56%
Mar 31, 2021 6.46% = 0.76 × 0.93 × 9.09%
Dec 31, 2020 6.03% = 0.76 × 0.92 × 8.62%
Sep 30, 2020 6.66% = 0.76 × 0.93 × 9.41%
Jun 30, 2020 6.94% = 0.77 × 0.93 × 9.74%
Mar 31, 2020 5.63% = 0.78 × 0.91 × 7.96%
Dec 31, 2019 5.76% = 0.79 × 0.91 × 8.03%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in effect of taxes measured by tax burden ratio.