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.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Analysis of Revenues
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Short-term Activity Ratios (Summary)
UnitedHealth Group Inc., short-term (operating) 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).
- Receivables Turnover
- The receivables turnover ratio exhibited a declining trend from 19.86 in 2020 to 17.27 in 2023, with a slight recovery to 17.66 in 2024. This decline over the period suggests that the collection efficiency of receivables has decreased, indicating that the company is taking longer to collect payments from customers compared to earlier years.
- Payables Turnover
- The payables turnover ratio showed some fluctuations but generally increased over the five-year period, from 7.29 in 2020 to 7.72 in 2024. The ratio peaked at 7.63 in 2021, dipped slightly in 2022 to 7.26, rose again in 2023, and continued to increase in 2024. This pattern reflects an overall improvement in how quickly the company pays its suppliers, potentially indicating better management of payables or favorable supplier terms.
- Average Receivable Collection Period
- The average receivable collection period lengthened from 18 days in 2020 and 2021 to 21 days in both 2023 and 2024. This increase aligns with the observed decrease in receivables turnover and suggests a consistent trend of slower collection from customers over recent years.
- Average Payables Payment Period
- The average payables payment period decreased marginally from 50 days in 2020 to 47 days in 2024, with slight fluctuations in between. This indicates a trend toward faster payments to suppliers, which correlates with the overall increasing payables turnover ratio, suggesting improved payment efficiency or adjustments in payment policies.
- Working Capital Turnover
- No data was available for the working capital turnover ratio across the years, limiting the ability to assess trends related to the efficiency of working capital utilization.
Turnover Ratios
Average No. Days
Receivables Turnover
UnitedHealth Group Inc., receivables 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 | ||||||
| Accounts receivable, net of allowances | ||||||
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | ||||||
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Receivables Turnover, Industry | ||||||
| Health Care | ||||||
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
Receivables turnover = Revenues, customers ÷ Accounts receivable, net of allowances
= ÷ =
2 Click competitor name to see calculations.
- Revenues, customers
- The revenues demonstrate a consistent and substantial increase over the five-year period. Starting at approximately 255.6 billion US dollars in 2020, revenues grew steadily each year, reaching nearly 395.1 billion US dollars by the end of 2024. This upward trend reflects a strong growth trajectory, with the most significant year-over-year increments observed between 2021 and 2023.
- Accounts receivable, net of allowances
- Accounts receivable also exhibit a rising trend, increasing from about 12.9 billion US dollars in 2020 to 22.4 billion US dollars in 2024. The growth in receivables aligns with the increase in revenues, suggesting an expansion in business operations and possibly a proportionate increase in credit sales or customer balances outstanding.
- Receivables turnover
- The receivables turnover ratio indicates a marginal decline over the period. Beginning at 19.86 in 2020, the ratio shows a slight downward movement to 17.66 by 2024. This decrease suggests that the company is collecting its receivables at a slower rate relative to its revenues, which could imply an elongation of the collection period or changes in credit policies.
Payables Turnover
UnitedHealth Group Inc., payables 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) | ||||||
| Medical costs | ||||||
| Medical costs payable | ||||||
| Short-term Activity Ratio | ||||||
| Payables turnover1 | ||||||
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Payables Turnover, Industry | ||||||
| Health Care | ||||||
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
Payables turnover = Medical costs ÷ Medical costs payable
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trend in medical costs over the five-year period. Medical costs increased from $159,396 million in 2020 to $264,185 million in 2024, indicating a significant rise in expenses related to medical services and claims. This trend suggests growing operational costs or expansion in healthcare services provided by the company.
Similarly, the medical costs payable also exhibited an increasing pattern, rising from $21,872 million in 2020 to $34,224 million in 2024. This increment aligns with the growing medical costs, reflecting rising liabilities for medical expenses that have yet to be paid at each year-end.
The payables turnover ratio, which measures the efficiency of paying off payables, shows moderate fluctuations but remains relatively stable over the years. Starting at 7.29 in 2020, the ratio increased to 7.63 in 2021, decreased slightly to 7.26 in 2022, then rose again to 7.47 in 2023 and 7.72 in 2024. This stability suggests that the company maintained a fairly consistent pace in settling its medical cost payables relative to the average amount owed, despite the increasing absolute values of costs and payables.
- Medical costs
- Steady increase annually, growing by approximately 65.7% from 2020 to 2024.
- Medical costs payable
- Progressively rose in tandem with medical costs, indicating expanding year-end liabilities.
- Payables turnover ratio
- Relatively stable with mild fluctuations, suggesting consistent payment efficiency over time.
Working Capital Turnover
UnitedHealth Group Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Less: Current liabilities | ||||||
| Working capital | ||||||
| Revenues, customers | ||||||
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | ||||||
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Working Capital Turnover, Industry | ||||||
| Health Care | ||||||
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
Working capital turnover = Revenues, customers ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital has shown fluctuations over the observed periods. It started at a deficit of -18,702 million USD at the end of 2020, improved slightly to -16,534 million USD in 2021, then deteriorated again to -20,168 million USD in 2022 and further to -20,617 million USD in 2023. In 2024, there was an improvement to -17,990 million USD. Despite these fluctuations, the working capital remains negative throughout the entire period, indicating that current liabilities exceed current assets consistently.
- Revenues from Customers
- Revenues exhibited a strong and steady growth trend across the five years. Starting at 255,639 million USD in 2020, revenues increased to 285,273 million USD in 2021, representing an approximate year-over-year growth of 11.6%. This upward trajectory continued with revenues rising to 322,132 million USD in 2022, 367,533 million USD in 2023, and reaching 395,076 million USD in 2024. The consistent increase in revenue points to successful business expansion or enhanced market penetration over the period.
- Working Capital Turnover
- Data for working capital turnover ratio is not available, hence no conclusions can be drawn regarding the efficiency in using working capital to generate sales.
Average Receivable Collection Period
UnitedHealth Group Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Average Receivable Collection Period, Industry | ||||||
| Health Care | ||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables turnover
- The receivables turnover ratio shows a general declining trend over the five-year period. It decreased from 19.86 in 2020 to 17.66 in 2024, indicating that the company is collecting its receivables less frequently each year. The most notable drop occurred between 2021 and 2023, where the ratio declined from 20.07 to 17.27, followed by a slight recovery to 17.66 in 2024.
- Average receivable collection period
- The average receivable collection period, expressed in days, increased gradually from 18 days in 2020 and 2021 to 21 days by 2023 and 2024. This increment suggests that on average, it takes longer for the company to collect its receivables, consistent with the decline in receivables turnover. The collection period extension from 18 to 21 days over the period reflects a moderate lengthening in customer payment cycles.
- Overall analysis
- The combined analysis of these two metrics indicates a trend toward slower receivable collection over the years. As the receivables turnover ratio declines, the average collection period increases, signaling potential changes in credit policy, customer payment behavior, or operational factors affecting cash inflows. While the changes are moderate, the trend may warrant closer monitoring to manage working capital efficiency effectively.
Average Payables Payment Period
UnitedHealth Group Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Average Payables Payment Period, Industry | ||||||
| Health Care | ||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the payables turnover and average payables payment period over the five-year period reveals subtle fluctuations indicating consistent management of payables.
- Payables Turnover
- The payables turnover ratio showed minor variations, beginning at 7.29 in 2020, rising to a peak of 7.63 in 2021, then slightly decreasing to 7.26 in 2022 before gradually increasing again to 7.72 by 2024. This pattern suggests that the company maintained a relatively steady rate of paying off its suppliers, with a slight improvement in turnover efficiency toward the end of the period.
- Average Payables Payment Period
- The average payables payment period reflected an inverse trend to the turnover ratio, starting at 50 days in 2020 and decreasing to 48 days in 2021. It then reverted to 50 days in 2022, slightly decreased to 49 days in 2023, and further shortened to 47 days in 2024. This consistent reduction, especially in the last two years, indicates a trend toward quicker payment of liabilities.
Overall, the company exhibits stable and slightly improving payables management, with a tendency to reduce the time taken to settle payables, which could enhance supplier relationships and possibly leverage better credit terms.