Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
UnitedHealth Group Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a generally positive trend over the observed period. Starting at 29.64 in 2020, it increases to 31.81 in 2021 and remains stable through 2022 before inching upward slightly to 32.1 in 2023. A more notable improvement is observed in 2024, where the ratio rises significantly to 37.44. This trend indicates an enhanced efficiency in generating sales from the company’s net fixed assets, particularly with the substantial increase in the latest year.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This ratio echoes the positive trajectory seen in the standard net fixed asset turnover but at a lower level due to the inclusion of operating lease assets. Beginning at 19.55 in 2020, the ratio advances to 21.54 in 2021 and remains consistent through 2022. It then improves modestly to 22.48 in 2023 and experiences a more marked increase to 25.58 by 2024. The pattern suggests that when leases are considered, the company continues to improve its capital utilization efficiency, with the growth accelerating in the most recent year.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable throughout the period. Starting at 1.3 in 2020, it increases slightly to 1.34 in 2021, dips marginally to 1.31 in 2022, returns to 1.34 in 2023, and then decreases slightly to 1.32 in 2024. This indicates that the company’s effectiveness in using all its assets to generate sales has remained largely constant without significant fluctuation.
- Equity Turnover
- The equity turnover ratio shows a consistent upward trend, beginning at 3.9 in 2020 and rising progressively over the five-year span. It moves up to 3.98 in 2021, 4.14 in 2022 and remains steady in 2023, before increasing further to 4.26 in 2024. This pattern suggests improving utilization of shareholders’ equity to produce revenue, reflecting stronger operational efficiency or leverage over time.
Net Fixed Asset Turnover
UnitedHealth Group Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues, customers | 395,076) | 367,533) | 322,132) | 285,273) | 255,639) | |
| Property, equipment and capitalized software, net of accumulated depreciation and amortization | 10,553) | 11,450) | 10,128) | 8,969) | 8,626) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 37.44 | 32.10 | 31.81 | 31.81 | 29.64 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.94 | 3.95 | 4.76 | 4.81 | 3.83 | |
| CVS Health Corp. | 28.53 | 27.05 | 24.98 | 22.56 | 21.25 | |
| Elevance Health Inc. | 37.66 | 39.05 | 36.07 | 34.94 | 34.69 | |
| Intuitive Surgical Inc. | 1.80 | 2.01 | 2.62 | 3.04 | 2.76 | |
| Medtronic PLC | 5.28 | 5.61 | 5.85 | 5.77 | 5.99 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 20.62 | 20.16 | 19.90 | 18.93 | 17.74 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 8.88 | 8.80 | 9.32 | 9.09 | 8.34 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Revenues, customers ÷ Property, equipment and capitalized software, net of accumulated depreciation and amortization
= 395,076 ÷ 10,553 = 37.44
2 Click competitor name to see calculations.
Over the observed five-year period, revenues attributable to customers displayed a consistent upward trend, increasing from $255.6 billion in 2020 to $395.1 billion in 2024. This represents significant growth in revenue, indicating expansion in business operations or market demand.
Regarding the company's investment in property, equipment, and capitalized software net of accumulated depreciation and amortization, the values increased from $8.6 billion in 2020 to a peak of approximately $11.45 billion in 2023. However, in 2024, this figure decreased to $10.55 billion, suggesting a reduction in net asset base after a period of growth.
The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenue, showed improvement throughout the period. Starting at 29.64 in 2020, it slightly increased to approximately 31.81 in 2021 and 2022, followed by a marginal rise to 32.1 in 2023. The ratio then notably accelerated to 37.44 in 2024. This indicates an enhanced ability to generate more revenues per unit of fixed asset investment, particularly strong in the final year.
- Revenue Trends
- Steady and substantial increase over five years indicating strong business growth.
- Property, Equipment and Capitalized Software
- Growth observed until 2023 followed by reduction in 2024, possibly reflecting asset disposals or write-downs.
- Net Fixed Asset Turnover
- Continuous improvement with a significant jump in 2024, suggesting increased operational efficiency or better utilization of fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
UnitedHealth Group Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues, customers | 395,076) | 367,533) | 322,132) | 285,273) | 255,639) | |
| Property, equipment and capitalized software, net of accumulated depreciation and amortization | 10,553) | 11,450) | 10,128) | 8,969) | 8,626) | |
| Operating lease right-of-use (ROU) assets (included in Other assets) | 4,889) | 4,898) | 4,830) | 4,273) | 4,447) | |
| Property, equipment and capitalized software, net of accumulated depreciation and amortization (including operating lease, right-of-use asset) | 15,442) | 16,348) | 14,958) | 13,242) | 13,073) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 25.58 | 22.48 | 21.54 | 21.54 | 19.55 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 3.58 | 3.56 | 4.25 | 4.26 | 3.42 | |
| CVS Health Corp. | 12.81 | 11.72 | 10.46 | 9.09 | 8.04 | |
| Elevance Health Inc. | 33.57 | 34.43 | 31.64 | 30.12 | 29.26 | |
| Intuitive Surgical Inc. | 1.75 | 1.97 | 2.53 | 2.93 | 2.66 | |
| Medtronic PLC | 4.53 | 4.72 | 5.06 | 4.84 | 5.02 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 13.97 | 13.28 | 12.65 | 11.63 | 10.46 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 7.33 | 7.17 | 7.48 | 7.17 | 6.51 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues, customers ÷ Property, equipment and capitalized software, net of accumulated depreciation and amortization (including operating lease, right-of-use asset)
= 395,076 ÷ 15,442 = 25.58
2 Click competitor name to see calculations.
The financial data reveals significant trends in the company's operational performance and asset utilization over the period from 2020 to 2024.
- Revenues, customers
- The revenue figures demonstrate a consistent upward trend throughout the five-year period. Starting at $255,639 million in 2020, revenues increased steadily each year, reaching $395,076 million by 2024. This represents a compound growth pattern, indicating robust business expansion and likely an increase in customer base or higher transaction volumes. The growth rate appears to accelerate slightly in the later years, suggesting enhanced market presence or product/service demand.
- Property, equipment and capitalized software, net of accumulated depreciation and amortization (including operating lease, right-of-use asset)
- The net value of property, equipment, and capitalized software assets shows moderate fluctuation. Beginning at $13,073 million in 2020, the asset base increased to $16,348 million by the end of 2023, reflecting investments or capital expenditures to support operational growth. However, in 2024, there is a slight decline to $15,442 million, which could be attributed to asset disposals, increased depreciation, or a strategic reduction in capital assets. This indicates a relatively stable but somewhat managed asset base over the period in question.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio exhibits a positive trend, increasing from 19.55 in 2020 to 25.58 by 2024. This rising ratio suggests improving efficiency in utilizing fixed assets to generate revenue. The steady ascent indicates that the company is generating more revenue per unit of asset invested, reflecting effective asset management and operational leverage. Such an improvement can imply that the company is leveraging its existing assets more efficiently or has optimized its asset structure relative to its revenue growth.
Overall, the data illustrates a scenario of consistent revenue growth supported by prudent asset management. The upward trajectory of the net fixed asset turnover highlights an efficient use of capital assets, even as the asset base undergoes minor contractions. This pattern signifies strong operational performance and effective resource allocation over the period analyzed.
Total Asset Turnover
UnitedHealth Group Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues, customers | 395,076) | 367,533) | 322,132) | 285,273) | 255,639) | |
| Total assets | 298,278) | 273,720) | 245,705) | 212,206) | 197,289) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.32 | 1.34 | 1.31 | 1.34 | 1.30 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.52 | 0.55 | 0.59 | 0.57 | 0.48 | |
| CVS Health Corp. | 1.46 | 1.43 | 1.41 | 1.25 | 1.16 | |
| Elevance Health Inc. | 1.50 | 1.56 | 1.51 | 1.41 | 1.39 | |
| Intuitive Surgical Inc. | 0.45 | 0.46 | 0.48 | 0.42 | 0.39 | |
| Medtronic PLC | 0.36 | 0.34 | 0.35 | 0.32 | 0.32 | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.19 | 1.20 | 1.17 | 1.09 | 1.03 | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.75 | 0.73 | 0.75 | 0.70 | 0.64 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Revenues, customers ÷ Total assets
= 395,076 ÷ 298,278 = 1.32
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trend in key performance metrics over the five-year period.
- Revenues, customers
- The revenue figures indicate steady growth each year, increasing from $255,639 million in 2020 to $395,076 million in 2024. This represents a compound increase, reflecting a strong expansion in the customer base or service utilization.
- Total assets
- Total assets also show a continuous increase from $197,289 million in 2020 to $298,278 million in 2024. This growth suggests ongoing asset accumulation or investments, potentially supporting the revenue growth observed.
- Total asset turnover
- The total asset turnover ratio remains relatively stable throughout the period, fluctuating slightly between 1.3 and 1.34. This indicates that the efficiency in using assets to generate revenues has been maintained without significant improvement or deterioration over the five years.
Overall, the company demonstrates robust revenue growth alongside increasing asset bases, while maintaining consistent operational efficiency as measured by asset turnover. This trend suggests balanced growth supported by effective asset utilization.
Equity Turnover
UnitedHealth Group Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues, customers | 395,076) | 367,533) | 322,132) | 285,273) | 255,639) | |
| Shareholders’ equity attributable to UnitedHealth Group | 92,658) | 88,756) | 77,772) | 71,760) | 65,491) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 4.26 | 4.14 | 4.14 | 3.98 | 3.90 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.88 | 1.04 | 1.19 | 1.20 | 1.06 | |
| CVS Health Corp. | 4.91 | 4.66 | 4.53 | 3.87 | 3.86 | |
| Elevance Health Inc. | 4.24 | 4.33 | 4.29 | 3.80 | 3.64 | |
| Intuitive Surgical Inc. | 0.51 | 0.54 | 0.56 | 0.48 | 0.45 | |
| Medtronic PLC | 0.64 | 0.61 | 0.60 | 0.59 | 0.57 | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 3.16 | 3.16 | 3.09 | 2.81 | 2.73 | |
| Equity Turnover, Industry | ||||||
| Health Care | 2.10 | 2.00 | 1.97 | 1.91 | 1.89 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Revenues, customers ÷ Shareholders’ equity attributable to UnitedHealth Group
= 395,076 ÷ 92,658 = 4.26
2 Click competitor name to see calculations.
- Revenues, customers
- The revenue figures demonstrate a consistent upward trend over the five-year period. Starting from approximately 255.6 billion USD in 2020, revenues increased steadily each year, reaching nearly 395.1 billion USD by 2024. This represents a substantial growth of over 54% from 2020 to 2024, indicating strong and sustained business expansion and possibly increasing market demand or customer base.
- Shareholders’ equity attributable to UnitedHealth Group
- The shareholders’ equity attributable to the company also exhibited continuous growth throughout the period examined. From about 65.5 billion USD in 2020, equity rose annually to reach approximately 92.7 billion USD by the end of 2024. This sustained increase in equity suggests consistent retention of earnings, reinvestment in the business, or potential capital injections, reinforcing financial stability and shareholder value enhancement.
- Equity turnover
- The equity turnover ratio showed a gradual improvement over the five years. It increased from 3.9 in 2020 to 4.26 in 2024. The ratio remained stable between 2022 and 2023 but rose again in 2024. This upward trend implies improved efficiency in the utilization of equity to generate revenues, reflecting enhanced operational effectiveness or potentially better asset management within the company.