Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
UnitedHealth Group Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
- Current Ratio
- The current ratio demonstrated minor fluctuations within a relatively narrow range over the observed period. Starting from 0.75 at the end of Q1 2020, it experienced a slight increase reaching 0.84 in Q2 2020 before dipping back down near 0.74 in Q4 2020. In subsequent periods, the ratio generally trended upward, peaking at 0.91 in Q3 2024. However, some volatility was present, evidenced by periodic small declines such as the drop to 0.77 in Q4 2022 and 0.83 in Q1 2025. Overall, the current ratio suggests a moderate capacity to cover short-term liabilities with current assets, improving gradually over the years but remaining below 1.0.
- Quick Ratio
- The quick ratio, representing the company’s ability to meet short-term obligations without relying on inventory, followed a pattern somewhat parallel to the current ratio. Initially at 0.66 in Q1 2020, it rose to 0.76 in Q2 2020, then experienced minor dips and recoveries throughout the timeframe. Notably, it increased to a peak of 0.83 in Q3 2024 before slightly retreating to 0.75 by Q1 2025. This ratio consistently stayed below the current ratio, indicating inventory’s contribution to liquidity. The overall trend shows gradual strengthening liquidity excluding inventory, though the ratio remains under 1.0, which indicates a relatively conservative liquidity position.
- Cash Ratio
- The cash ratio, illustrating the most liquid assets relative to current liabilities, exhibited more variability than the other two ratios. Starting at 0.35 in Q1 2020, it peaked at 0.46 during Q3 2022, highlighting a temporary accumulation of cash or cash equivalents. Following this peak, the ratio declined and fluctuated between approximately 0.28 and 0.44 subsequently, ending lower than initial levels at 0.30 in Q1 2025. This indicates that the company’s pure cash liquidity position tightened towards the latter periods despite some intermittent improvements. Compared to the current and quick ratios, the cash ratio remains the lowest, reflecting lesser coverage by cash alone for current liabilities.
- Summary
- The analysis of liquidity ratios over multiple quarters reveals that while there has been a general improvement in both current and quick ratios, the company consistently operates with ratios below 1.0, suggesting a modest liquidity buffer to cover current liabilities. The cash ratio demonstrates greater volatility and a less pronounced upward trend, implying cautious management of cash reserves. These patterns reflect a stable but conservative liquidity profile, with incremental strengthening of overall short-term financial flexibility over the five-year timespan, albeit with some quarter-to-quarter variability.
Current Ratio
UnitedHealth Group Inc., current ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets experienced fluctuations over the reported periods. Initially, values hovered around the mid-50,000s to mid-60,000s (in millions) from March 2020 to December 2021, with a noticeable increase starting in March 2022, reaching a peak close to 93,895 million in March 2023. Following this peak, there was a general decline to approximately 78,437 million by December 2023, before recovering again to near 96,285 million by March 2025. This pattern indicates periods of asset accumulation followed by partial contractions, and then renewed growth towards the end of the timeline.
- Current Liabilities
- Current liabilities showed a steadily increasing trend throughout the timeline. Beginning at around 78,606 million in March 2020, liabilities escalated with some minor variations, peaking in March 2023 at approximately 116,482 million. Although a slight decrease occurred after this peak, liabilities remained elevated relative to the starting point, finishing at 113,471 million by March 2025. This upward trend suggests an increasing short-term obligation burden over time.
- Current Ratio
- The current ratio generally fluctuated between 0.74 and 0.91, indicating a consistent liquidity level below the ideal threshold of 1. Initially, the ratio was lowest at 0.74 in March 2020 and December 2020, demonstrating limited short-term liquidity. From early 2022 onwards, there was a gradual improvement, with the ratio reaching its highest value of 0.91 in September 2024. Despite this improvement, the ratio remained below 1, implying that current liabilities consistently exceeded current assets, which may pose a liquidity risk. The ratio showed slight volatility but the overall trend was gradual strengthening of liquidity toward the later periods.
Quick Ratio
UnitedHealth Group Inc., quick ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||||
| Other current receivables, net | ||||||||||||||||||||||||||||
| Assets under management | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
-
The total quick assets exhibit a generally upward trend from March 2020 through March 2025, starting at approximately $52.2 billion and reaching around $87.2 billion by the end of the period. There are some fluctuations along the timeline, such as a dip in quick assets in December 2022 ($62.4 billion) compared to the previous quarter's $77.3 billion in September 2022. However, overall the trend shows growth, indicating an increasing level of liquid assets over time.
- Current Liabilities
-
Current liabilities demonstrate a substantial increase over the same period. Starting near $78.6 billion in March 2020, the liabilities fluctuate but generally rise to about $113.5 billion by March 2025. This increase is somewhat irregular, with instances of decreases such as the dip from $100.9 billion in September 2022 to $89.2 billion in December 2022, followed by further increases. The upward trend in liabilities suggests higher short-term obligations.
- Quick Ratio
-
The quick ratio oscillates between 0.66 and 0.83 over the examined quarters, indicating varying short-term liquidity but mostly remaining below 1. The ratio improved from 0.66 in March 2020 to a peak of 0.83 in September 2024, signaling better capacity to cover current liabilities with liquid assets during that period. Nonetheless, the ratio declines slightly toward the end to 0.77 in March 2025. This pattern reflects moderate liquidity without a consistent trend of strong improvement or deterioration.
- Overall Analysis
-
The data reveals a firm experiencing growth in both liquid assets and current liabilities, with liabilities increasing at a relatively faster pace. Although the quick ratio trends upward, it remains below 1, suggesting a cautious liquidity position. The fluctuations in quick assets and liabilities highlight varying operational or financial conditions each quarter, but the general pattern indicates a need for continued attention to short-term financial flexibility.
Cash Ratio
UnitedHealth Group Inc., cash ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Assets under management | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit notable fluctuations over the observed periods. Starting at approximately 27.3 billion USD in March 2020, the amount experienced a decline through late 2020, reaching a low near 23.9 billion USD in December 2020. Throughout 2021, cash assets showed a moderate upward trend, surpassing 28 billion USD by year-end. In 2022, there was a significant increase in the third quarter, with cash assets peaking at around 46.5 billion USD, followed by a sharp decrease in the next quarter. The subsequent period from 2023 onward reveals variability, with peaks in the first quarter of 2023 at about 50.3 billion USD and substantial declines in later quarters, ending near 34.3 billion USD by March 2025. Overall, cash assets maintain a cyclical pattern with occasional pronounced spikes and declines.
- Current Liabilities
- Current liabilities show an overall increasing trend across the timeframe. Beginning at roughly 78.6 billion USD in March 2020, liabilities dropped briefly mid-2020 but then steadily rose, surpassing 80 billion USD at the start of 2021. Thereafter, liabilities continued to climb, exhibiting peaks at the end of each year, with figures exceeding 116 billion USD in March 2023. Although some quarters, notably in late 2023 and early 2024, depict minor decreases, the general direction points toward growing obligations, ending at approximately 113.5 billion USD in March 2025. This trend could indicate increasing short-term financial commitments or expanded operational scale.
- Cash Ratio
- The cash ratio, which measures the company’s liquidity by comparing cash assets to current liabilities, remains relatively stable yet low throughout the period, indicating limited ability to cover short-term liabilities with cash alone. Values oscillate mostly between 0.28 and 0.46 with minor fluctuations. The ratio starts at 0.35 in March 2020, peaks at 0.46 in the third quarter of 2022, and generally trends slightly downward afterward, reaching as low as 0.28 in March 2025. These levels imply a consistent reliance on other liquid assets or funding sources beyond cash to satisfy current liabilities.
- Summary
- The financial data suggest that while cash assets experience significant variability, they do not keep pace proportionally with the rising current liabilities, as evidenced by the consistently low cash ratio. The increasing trend in current liabilities alongside fluctuating cash reserves may point to elevated operational or financial leverage and potential liquidity management challenges. Maintaining such a low cash ratio over multiple years suggests a strategic approach favoring liquidity through diverse assets and possibly short-term financing mechanisms rather than holding large cash balances.