UnitedHealth Group Inc. (NYSE:UNH)

The analysis covers key financial ratios over multiple quarters, highlighting trends in profitability and capital structure.

Return on Assets (ROA)

The ROA began being reported from the quarter ending March 31, 2020. It exhibited moderate fluctuations over the observed period. Initial values showed a rise to a peak of around 8.23% in June 2020, followed by a decline toward late 2024, reaching a low near 4.78% in September 2024. Subsequently, the ROA recovered somewhat, rising again to approximately 7.14% by the quarter ending March 31, 2025. This pattern suggests variability in asset efficiency, with a notable dip in 2024 and subsequent recovery.

Financial Leverage

The financial leverage ratio displayed relative stability throughout the period, fluctuating within a narrow range between approximately 2.93 and 3.49. A slight upward movement was observed around 2023, peaking near 3.49 before declining slightly, then stabilizing close to 3.26 by mid-2025. This stability indicates consistent use of debt relative to equity, without significant shifts in leverage strategy.

Return on Equity (ROE)

The ROE trended upwards early in the period, reaching highs of about 26% in late 2022 and early 2023. Thereafter, a decline occurred beginning in 2023, bottoming out around 15.14% in September 2024. A recovery phase followed, lifting the ratio back to mid-20% range by mid-2025. The ROE pattern mirrors the ROA trend, reflecting fluctuating profitability and/or changes in leverage impact on equity returns.

In summary, the company maintained a fairly stable financial leverage posture, while profitability measures experienced more volatility. Both ROA and ROE showed strong performance early on, deteriorated notably around 2024, and then rebounded by 2025. The trends suggest a period of operational or market challenges impacting asset and equity returns, followed by improvements in financial performance towards the end of the observed timeline.

Net Profit Margin

The net profit margin demonstrated an initial increase starting from the first available data in March 2021, reaching a peak near 6.25% in March 2023. Thereafter, it experienced a significant decline, dropping to around 3.65-3.70% by the end of 2024 before showing signs of recovery, rising back above 5% in the first half of 2025.

Asset Turnover

The asset turnover ratio remained relatively stable throughout the periods, generally fluctuating between 1.18 and 1.35. Slight decreases are observed in mid-2023, followed by a recovery to higher levels near 1.35 by early 2025, indicating consistent efficiency in using assets to generate revenue.

Financial Leverage

Financial leverage showed some volatility over the time frame, with an initial decrease from above 3.3 in early 2020 to around 2.93 by late 2020, followed by fluctuations mostly between 3.0 and 3.5. There was a noticeable peak near 3.49 around early 2023, then a decline to approximately 3.08 in late 2023, and a modest increase again to about 3.26 in mid-2025. This indicates relatively consistent use of debt relative to equity with mild adjustments.

Return on Equity (ROE)

Return on equity rose sharply beginning in early 2021, peaking at around 26% near the end of 2022 and early 2023. Following this, there was a pronounced decline to the range of 15.14%-17.72% through the end of 2024. However, the ROE rebounded strongly into 2025, reaching approximately 23-23.3%. This pattern suggests a period of strong profitability followed by a downturn and subsequent recovery.

Overall Insights

The data reveals a pattern of strong financial performance up to early 2023, characterized by peak profitability and solid returns on equity. This period was followed by a marked dip in profitability measures, both in net profit margin and ROE, coinciding with a modest decline in asset efficiency and fluctuating financial leverage. The recent trend toward recovery in 2025 suggests improved operational performance or financial management. Stability in asset turnover and leverage ratios implies that changes in profitability were driven more by operational or market factors than by shifts in financial structure or asset utilization.

Tax Burden

The tax burden ratio begins at 0.76 in March 2021 and shows a gradual increase, reaching 0.79 from March 2022 through December 2023. However, from June 2024 the ratio declines to a low of 0.73 before rising again to 0.83 by June 2025, indicating fluctuations in the effective tax rate affecting net income retention.

Interest Burden

The interest burden ratio remains relatively stable around 0.92 to 0.93 from March 2021 to March 2023, before exhibiting a decline starting June 2023 with a low of 0.83 in September 2024. A moderate recovery is observed thereafter, reaching 0.87 by June 2025. This suggests variability in interest expenses relative to earnings before interest and taxes over the period.

EBIT Margin

The EBIT margin exhibits moderate volatility. Starting at 8.62% in March 2021, it peaks at 8.7% in June 2023 before dropping significantly to around 5.86% by December 2024. There is a noticeable rebound to 7.16% by June 2025. This pattern indicates a compression in operating profitability during 2023-2024, followed by partial recovery.

Asset Turnover

Asset turnover remains relatively steady, fluctuating slightly around values between 1.18 and 1.35 throughout the entire period. There is a minor dip in mid-2023 but a return to higher values by mid-2025, indicating sustained efficiency in asset utilization to generate revenue.

Financial Leverage

Financial leverage trends show variability, starting at 3.32 in March 2020, dipping to a low around 2.93-3.01 during 2020-2021, then increasing to a peak of 3.49 in March 2023. Later values moderate around 3.20 to 3.30, indicating fluctuating reliance on debt financing with some periods of increased leverage.

Return on Equity (ROE)

ROE displays a strong upward trajectory from 23.52% in March 2021 to a high of 26.03% in December 2022. Subsequently, there is a sharp decline to approximately 15.14% in September 2024, before rebounding to 22.48% by June 2025. This reflects changes in overall profitability and efficiency in generating shareholder returns, closely mirroring trends in EBIT margin and financial leverage.

Net Profit Margin

The net profit margin exhibited significant fluctuations from the first available data point in March 2020 through June 2025. Beginning at 6.03% in March 2020, it rose moderately to a peak near 6.25% by December 2021. This was followed by a slight decline through 2023, maintaining levels just above 6%, indicating relatively stable profitability during this period. However, starting in early 2024, the net profit margin showed a marked downward trend, dropping sharply to approximately 3.65% by December 2024. A partial recovery was observed thereafter, reaching 5.46% in March 2025 and 5.1% in June 2025. Overall, the net profit margin illustrates a period of steady profitability, a significant dip in early 2024, and a subsequent moderate recovery.

Asset Turnover

Asset turnover ratios have demonstrated relative stability with minor fluctuations over the reported quarters. Starting at 1.3 in March 2020, the ratio slightly decreased to 1.27 by June 2020, then fluctuated around the 1.29 to 1.35 range for several quarters thereafter. A notable decline to 1.18 occurred in June 2023, the lowest point recorded. Following this, the ratio rebounded gradually, reaching 1.35 by June 2025. This pattern suggests a brief period of reduced efficiency in using assets to generate revenue around mid-2023, followed by a steady improvement in asset utilization efficiency toward mid-2025.

Return on Assets (ROA)

The return on assets mirrored trends observed in net profit margin and asset turnover. Initially, ROA increased from 7.81% in March 2020 to a high near 8.23% in June 2020, then generally remained near 7.9% to 8.19% through early 2023, showing consistent asset profitability. However, a decline began in 2023, with ROA falling sharply to 5.4% in March 2024 and reaching lows around 4.78% to 4.93% in mid to late 2024. A subsequent recovery occurred, with ROA increasing to approximately 7.14% by March 2025 and maintaining near 6.9% in June 2025. The ROA trend indicates an initial period of strong asset-based returns, a significant reduction in mid-2024, and recovery in the following quarters.

Overall Observations

The data reveals that profitability and asset efficiency metrics maintained relative strength and stability through 2020 to early 2023. Mid-2023 to early 2024 marked a period of notable decline in profitability and efficiency ratios, suggesting operational or market challenges. Recovery in these key financial indicators after this period suggests effective corrective management or improving market conditions. These trends highlight the importance of closely monitoring the factors driving the mid-2023 to early 2024 decline to sustain long-term financial health.

Tax Burden

The tax burden ratio demonstrates a generally stable pattern from the first recorded period in March 2021 through December 2023, maintaining a range between approximately 0.76 and 0.79. Starting in March 2024, a noticeable decline occurs through June and September 2024, reaching about 0.73, before rising steadily from December 2024 onwards, peaking at 0.83 by June 2025. This suggests fluctuations in effective tax rates that initially declined but later increased towards the end of the observed timeframe.

Interest Burden

The interest burden ratio remains relatively stable initially, fluctuating narrowly between 0.90 and 0.93 from March 2021 through December 2023. However, from March 2024 onwards, a downward trend is observed, with the ratio declining to around 0.83 by September 2024, indicating increased interest expenses relative to earnings before interest and taxes. A mild recovery occurs in the last two quarters, reaching 0.87 and 0.86 respectively, though it remains below early period levels.

EBIT Margin

The EBIT margin shows moderate variability across the period. Early data from March 2021 to December 2023 indicate margins mostly between 7.5% and 8.7%, peaking just under 8.7% in December 2023. A marked reduction is seen from March 2024, as margins decline progressively to a low around 5.86% by December 2024, suggesting pressure on operating profitability. A subsequent rebound in early 2025 brings the margin up to approximately 7.16% by June 2025, highlighting a partial restoration of operating efficiency.

Asset Turnover

Asset turnover ratios are fairly consistent with minor fluctuations, generally ranging between 1.27 and 1.35 throughout the entire timeline. Notable declines occur intermittently around mid-2022 and early 2024, dropping close to 1.18, before recovering to previous levels near 1.35 by June 2025. This indicates steady asset utilization with occasional short-term decreases in the efficiency of asset usage to generate revenue.

Return on Assets (ROA)

The ROA follows a trend somewhat aligned with EBIT margin and interest burden. From March 2021 through late 2023, ROA remains relatively healthy, mostly fluctuating around 7.5% to 8.2%. Beginning in early 2024, there is a notable decrease, with returns falling to below 5% during several quarters, suggesting diminished overall asset profitability. However, a recovery trend appears during early 2025, improving ROA to approximately 6.9%, indicating a partial restoration in the effectiveness of asset deployment.

The analysis of the financial ratios over the reported periods reveals several trends in profitability and burden metrics.

Tax Burden

This ratio displays a generally stable pattern from the first available data point in March 2021 through December 2023, maintaining a range around 0.76 to 0.79. Starting in March 2024, the tax burden ratio declines to approximately 0.73-0.75 over several quarters before climbing notably to 0.81 and 0.83 towards the middle of 2025. The upward movement at the end of the timeline suggests a potential increase in the effective tax rate or changes in tax expenses relative to earnings before taxes.

Interest Burden

The interest burden demonstrates relative stability between 0.90 and 0.93 through December 2023, indicating consistent interest expenses relative to earnings before interest and taxes. From early 2024, a gradual decline is observed, reaching a low near 0.83 in late 2024 before slightly increasing to around 0.86-0.87 in mid-2025. This decline may point to increasing interest expenses or reduced earnings before interest and taxes in that period, with a slight recovery afterward.

EBIT Margin

Operating profitability measured by EBIT margin remains fairly consistent between 7.5% and 8.7% from early 2021 to late 2023, reflecting steady operational performance. However, a noticeable decline occurs starting in early 2024, with margins dropping to as low as approximately 5.9% during late 2024. There is a marked improvement by early 2025, with the margin rising back to above 7%, indicating a recovery in operating earnings.

Net Profit Margin

Net profit margin shows a similar pattern to EBIT margin, maintaining a level around 5.3% to 6.4% until late 2023, which indicates steady overall profitability after expenses and taxes. From the first quarter of 2024 onward, the margin declines significantly to below 3.7% in late 2024, signifying reduced net profitability relative to revenues. By early 2025, there is a partial recovery, with margins improving to approximately 5-5.5%.

In summary, the financial ratios suggest a period of stable profitability and financial burden through 2023, followed by a downturn beginning in early 2024, characterized by decreased operating and net profit margins alongside increasing tax burden and decreasing interest burden ratios. This period is then followed by signs of recovery in profitability and some normalization in financial burdens by mid-2025.