Analysis of Short-term (Operating) Activity Ratios
Beginner level
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
UnitedHealth Group Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | UnitedHealth Group Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | UnitedHealth Group Inc.’s payables turnover ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
UnitedHealth Group Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 240,269 | 224,871 | 200,136 | 184,012 | 156,397 | |
| Accounts receivable, net of allowances | 11,822 | 11,388 | 9,568 | 8,152 | 6,523 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 20.32 | 19.75 | 20.92 | 22.57 | 23.98 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 7.37 | 6.89 | 6.93 | 7.72 | 6.35 | |
| Boston Scientific Corp. | 5.87 | 6.11 | 5.84 | 5.70 | 5.86 | |
| Danaher Corp. | 5.61 | 5.70 | 5.20 | 5.30 | 5.19 | |
| Intuitive Surgical Inc. | 6.94 | 5.46 | 6.11 | 6.29 | 6.05 | |
| Medtronic PLC | 4.91 | 5.00 | 5.31 | 5.18 | 3.96 | |
| Stryker Corp. | 5.14 | 5.83 | 5.66 | 5.76 | 5.98 | |
| Thermo Fisher Scientific Inc. | 5.87 | 5.89 | 5.39 | 5.99 | 6.67 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 10.86 | 10.71 | 10.71 | 11.12 | 10.58 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 7.29 | 7.39 | 7.23 | 7.52 | 7.26 | |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
1 2019 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net of allowances
= 240,269 ÷ 11,822 = 20.32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | UnitedHealth Group Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Payables Turnover
UnitedHealth Group Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenues | 184,557 | 172,401 | 154,148 | 141,454 | 120,081 | |
| Medical costs payable | 21,690 | 19,891 | 17,871 | 16,391 | 14,330 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 8.51 | 8.67 | 8.63 | 8.63 | 8.38 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 8.24 | 7.89 | 7.72 | 9.76 | 8.85 | |
| Boston Scientific Corp. | 5.75 | 8.06 | 4.89 | 5.42 | 10.40 | |
| Danaher Corp. | 5.23 | 5.13 | 5.39 | 5.08 | 4.78 | |
| Intuitive Surgical Inc. | 11.08 | 11.12 | 11.33 | 11.89 | 15.33 | |
| Medtronic PLC | 4.69 | 5.56 | 5.37 | 5.35 | 3.92 | |
| Stryker Corp. | 7.69 | 7.22 | 8.77 | 8.76 | 8.16 | |
| Thermo Fisher Scientific Inc. | 7.40 | 8.36 | 8.03 | 10.69 | 11.20 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 7.95 | 8.17 | 8.06 | 8.21 | 7.82 | |
| Payables Turnover, Industry | ||||||
| Health Care | 5.76 | 5.98 | 5.80 | 5.96 | 5.79 | |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
1 2019 Calculation
Payables turnover = Cost of revenues ÷ Medical costs payable
= 184,557 ÷ 21,690 = 8.51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | UnitedHealth Group Inc.’s payables turnover ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
Working Capital Turnover
UnitedHealth Group Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 42,634 | 38,692 | 37,084 | 33,879 | 31,639 | |
| Less: Current liabilities | 61,782 | 53,209 | 50,463 | 49,252 | 42,898 | |
| Working capital | (19,148) | (14,517) | (13,379) | (15,373) | (11,259) | |
| Revenues | 240,269 | 224,871 | 200,136 | 184,012 | 156,397 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 17.14 | 81.96 | 0.79 | 6.35 | 6.20 | |
| Boston Scientific Corp. | — | — | — | — | 7.18 | |
| Danaher Corp. | 0.87 | 8.83 | 8.91 | — | 12.34 | |
| Intuitive Surgical Inc. | 1.23 | 1.06 | 1.49 | 1.02 | 1.40 | |
| Medtronic PLC | 2.26 | 2.32 | 2.79 | 1.75 | 0.93 | |
| Stryker Corp. | 2.14 | 2.76 | 2.76 | 2.40 | 2.24 | |
| Thermo Fisher Scientific Inc. | 4.48 | 5.44 | 8.82 | 8.48 | 10.64 | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 11.25 | 27.41 | 14.04 | 23.59 | 10.85 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 5.35 | 5.21 | 4.29 | 3.54 | 3.72 | |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
1 2019 Calculation
Working capital turnover = Revenues ÷ Working capital
= 240,269 ÷ -19,148 = —
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. |
Average Receivable Collection Period
UnitedHealth Group Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 20.32 | 19.75 | 20.92 | 22.57 | 23.98 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 18 | 18 | 17 | 16 | 15 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Becton, Dickinson & Co. | 50 | 53 | 53 | 47 | 57 | |
| Boston Scientific Corp. | 62 | 60 | 62 | 64 | 62 | |
| Danaher Corp. | 65 | 64 | 70 | 69 | 70 | |
| Intuitive Surgical Inc. | 53 | 67 | 60 | 58 | 60 | |
| Medtronic PLC | 74 | 73 | 69 | 70 | 92 | |
| Stryker Corp. | 71 | 63 | 64 | 63 | 61 | |
| Thermo Fisher Scientific Inc. | 62 | 62 | 68 | 61 | 55 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 34 | 34 | 34 | 33 | 35 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 50 | 49 | 50 | 49 | 50 | |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 20.32 = 18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Average Payables Payment Period
UnitedHealth Group Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 8.51 | 8.67 | 8.63 | 8.63 | 8.38 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 43 | 42 | 42 | 42 | 44 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Becton, Dickinson & Co. | 44 | 46 | 47 | 37 | 41 | |
| Boston Scientific Corp. | 64 | 45 | 75 | 67 | 35 | |
| Danaher Corp. | 70 | 71 | 68 | 72 | 76 | |
| Intuitive Surgical Inc. | 33 | 33 | 32 | 31 | 24 | |
| Medtronic PLC | 78 | 66 | 68 | 68 | 93 | |
| Stryker Corp. | 47 | 51 | 42 | 42 | 45 | |
| Thermo Fisher Scientific Inc. | 49 | 44 | 45 | 34 | 33 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 46 | 45 | 45 | 44 | 47 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 63 | 61 | 63 | 61 | 63 | |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.51 = 43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |