Analysis of Short-term (Operating) Activity Ratios
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 (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | UnitedHealth Group Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | UnitedHealth Group Inc. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
| 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. | UnitedHealth Group Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
UnitedHealth Group Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Premiums | 226,233 | 201,478 | 189,699 | 178,087 | 158,453 | |
| Accounts receivable, net of allowances | 14,216 | 12,870 | 11,822 | 11,388 | 9,568 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 15.91 | 15.65 | 16.05 | 15.64 | 16.56 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.64 | 5.40 | 5.88 | 5.90 | 5.22 | |
| Anthem Inc. | 20.66 | 19.72 | 18.20 | 19.13 | 23.20 | |
| Bristol-Myers Squibb Co. | 5.65 | 5.72 | 3.89 | 4.66 | 4.43 | |
| CVS Health Corp. | 11.91 | 12.32 | 13.04 | 11.00 | 14.02 | |
| Danaher Corp. | 6.36 | 5.51 | 5.61 | 5.70 | 5.20 | |
| Intuitive Surgical Inc. | 7.30 | 6.75 | 6.94 | 5.46 | 6.11 | |
| Medtronic PLC | 5.51 | 6.22 | 4.91 | 5.00 | 5.31 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 11.31 | 11.22 | 11.09 | 10.53 | 11.51 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.19 | 8.12 | 8.49 | 8.17 | 8.44 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Premiums ÷ Accounts receivable, net of allowances
= 226,233 ÷ 14,216 = 15.91
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. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Payables Turnover
UnitedHealth Group Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Medical costs | 186,911 | 159,396 | 156,440 | 145,403 | 130,036 | |
| Medical costs payable | 24,483 | 21,872 | 21,690 | 19,891 | 17,871 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 7.63 | 7.29 | 7.21 | 7.31 | 7.28 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.21 | 3.80 | 4.07 | 4.27 | 5.14 | |
| Anthem Inc. | 7.59 | 7.75 | 9.25 | 9.65 | 9.04 | |
| Bristol-Myers Squibb Co. | 3.37 | 4.34 | 3.30 | 3.46 | 2.70 | |
| CVS Health Corp. | 19.14 | 19.72 | 20.13 | 18.27 | 17.63 | |
| Danaher Corp. | 4.48 | 4.79 | 5.23 | 5.13 | 5.39 | |
| Intuitive Surgical Inc. | 14.45 | 18.35 | 11.08 | 11.12 | 11.33 | |
| Medtronic PLC | 4.98 | 4.72 | 4.69 | 5.56 | 5.37 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.28 | 9.33 | 9.72 | 9.39 | 9.26 | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.61 | 7.46 | 7.79 | 7.58 | 7.42 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Medical costs ÷ Medical costs payable
= 186,911 ÷ 24,483 = 7.63
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. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
UnitedHealth Group Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 61,758 | 53,718 | 42,634 | 38,692 | 37,084 | |
| Less: Current liabilities | 78,292 | 72,420 | 61,782 | 53,209 | 50,463 | |
| Working capital | (16,534) | (18,702) | (19,148) | (14,517) | (13,379) | |
| Premiums | 226,233 | 201,478 | 189,699 | 178,087 | 158,453 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.87 | 4.06 | 6.64 | 5.44 | 2.44 | |
| Anthem Inc. | 7.23 | 6.39 | 6.11 | 6.91 | 6.48 | |
| Bristol-Myers Squibb Co. | 3.95 | 3.72 | 2.28 | 3.32 | 3.64 | |
| CVS Health Corp. | — | — | — | 157.15 | 318.01 | |
| Danaher Corp. | 8.40 | 3.48 | 0.87 | 8.83 | 8.91 | |
| Intuitive Surgical Inc. | 1.22 | 0.77 | 1.23 | 1.06 | 1.49 | |
| Medtronic PLC | 2.15 | 2.48 | 2.26 | 2.32 | 2.79 | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 21.48 | 19.96 | 13.85 | 18.86 | 16.68 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 11.05 | 11.19 | 7.23 | 6.36 | 5.91 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Premiums ÷ Working capital
= 226,233 ÷ -16,534 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
UnitedHealth Group Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 15.91 | 15.65 | 16.05 | 15.64 | 16.56 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 23 | 23 | 23 | 23 | 22 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 55 | 68 | 62 | 62 | 70 | |
| Anthem Inc. | 18 | 19 | 20 | 19 | 16 | |
| Bristol-Myers Squibb Co. | 65 | 64 | 94 | 78 | 82 | |
| CVS Health Corp. | 31 | 30 | 28 | 33 | 26 | |
| Danaher Corp. | 57 | 66 | 65 | 64 | 70 | |
| Intuitive Surgical Inc. | 50 | 54 | 53 | 67 | 60 | |
| Medtronic PLC | 66 | 59 | 74 | 73 | 69 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 32 | 33 | 33 | 35 | 32 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 45 | 45 | 43 | 45 | 43 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 15.91 = 23
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 7.63 | 7.29 | 7.21 | 7.31 | 7.28 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 48 | 50 | 51 | 50 | 50 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 87 | 96 | 90 | 85 | 71 | |
| Anthem Inc. | 48 | 47 | 39 | 38 | 40 | |
| Bristol-Myers Squibb Co. | 108 | 84 | 110 | 105 | 135 | |
| CVS Health Corp. | 19 | 19 | 18 | 20 | 21 | |
| Danaher Corp. | 82 | 76 | 70 | 71 | 68 | |
| Intuitive Surgical Inc. | 25 | 20 | 33 | 33 | 32 | |
| Medtronic PLC | 73 | 77 | 78 | 66 | 68 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 39 | 39 | 38 | 39 | 39 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 48 | 49 | 47 | 48 | 49 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.63 = 48
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. | UnitedHealth Group Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |