UnitedHealth Group Inc. (NYSE:UNH)

Receivables Turnover

The receivables turnover ratio exhibits notable fluctuations over the observed periods. Initially, it increases from 16.35 to a peak near 20 in late 2021, followed by a decline in early 2022. A pattern of oscillation continues, with values varying between approximately 14 and 20. The turnover tends to peak around the third quarter of each year and falls in the first quarter, indicating potential seasonal variation in collection efficiency.

Payables Turnover

The payables turnover ratio shows a generally upward trend with less volatility compared to receivables turnover. Starting near 6.58, it consistently rises to stabilize around 7.3 to 7.7 in recent periods, suggesting improved or more consistent payment activity or management of payables over time.

Average Receivable Collection Period

The average collection period largely mirrors the fluctuations observed in receivables turnover, as expected. It decreases from 22 days early in 2021 to about 18 days at the end of that year, indicating faster collections. However, it rises again in early 2022 to 25 days, then oscillates between approximately 19 and 26 days in subsequent quarters. The period tends to lengthen in the first quarter of each year, reflecting the drop in receivables turnover during the same timeframe.

Average Payables Payment Period

The average payables payment period shows a declining trend from 56 days at the start of 2021 to values near 47-50 days in later years. This suggests shorter payment cycles, although some variability remains. Periods with lower payment days correspond with improved payables turnover ratio, reinforcing the notion of more efficient payment practices over time.

General Insights

The data reveals seasonal patterns impacting both receivables and payables metrics, particularly evident in early calendar quarters where collection periods tend to lengthen and turnover ratios decline. The overall trend for payables indicates gradual improvement in payment cycle efficiency, while receivables turnover remains more variable. Such patterns could reflect cyclical business operations or external factors affecting cash flow timing.

Revenue Trends

Revenues exhibited a generally upward trend over the observed periods. Starting at approximately $69.7 billion in the first quarter of 2021, revenues showed steady growth through 2022 and 2023, reaching around $93.2 billion by the end of 2023. This growth continued into 2024 and 2025, with revenues surpassing $112 billion by the third quarter of 2025. The pattern indicates consistent expansion with occasional moderate quarterly fluctuations, reflecting increasing customer engagement or pricing adjustments.

Accounts Receivable Trends

Accounts receivable followed a more volatile pattern relative to revenues. Starting at about $16 billion in the first quarter of 2021, receivables decreased slightly through the first three quarters of 2021 before rising sharply to nearly $18.9 billion by the first quarter of 2022. Subsequent quarters showed fluctuations, with receivables peaking above $27 billion in early 2024 and again in early 2025. This variability suggests changing collection cycles or billing patterns, with notable increases potentially indicating slower collections or extended credit terms during certain quarters.

Receivables Turnover Ratio

The receivables turnover ratio exhibited variability across the quarters, indicating inconsistent efficiency in collecting receivables. Ratios peaked near 20 in late 2021, reflecting rapid collections, but declined to a low of approximately 13.8 in early 2024, signaling slower turnover. The ratio rebounded to around 19.4 by the third quarter of 2024, then declined again to near 15 in early 2025 before rising to nearly 19 in the third quarter of 2025. Overall, this suggests cyclical fluctuations in collection efficiency, possibly related to changes in operational effectiveness or external economic factors affecting customer payment behavior.

Interrelation of Metrics

While revenues consistently increased, accounts receivable growth was more irregular, occasionally outpacing revenue increases. This pattern, combined with fluctuating receivables turnover, indicates periods where customer payments lagged behind sales growth. The periods of lower turnover ratios alongside rising receivables may signal credit management challenges or shifts in customer payment terms. Conversely, higher turnover ratios with stable receivables suggest improved collection effectiveness at times.

Medical Costs

The medical costs show a consistent upward trend over the periods analyzed. Starting at $44,904 million in the first quarter of 2021, the costs increased steadily each quarter, reaching $79,958 million by the third quarter of 2025. The growth accelerated after the end of 2021, with quarterly values increasing by larger increments, indicating rising medical expense pressures over time.

Medical Costs Payable

The medical costs payable similarly exhibit an increasing trend, rising from $24,833 million in the first quarter of 2021 to $40,181 million in the third quarter of 2025. Notably, while there is steady growth, some fluctuations are visible, such as a slight decline in the second quarter of 2024. Overall, the balance of payables tends to correspond proportionally with total medical costs but with somewhat less volatility.

Payables Turnover Ratio

The payables turnover ratio demonstrates moderate variation but no clear long-term upward or downward trend. It started at 6.58 in March 2021, experienced some fluctuations around the 7.0 mark in subsequent quarters, and ended at 7.44 in September 2025. This indicates a slightly improved or more efficient payables management over time, with the company generally maintaining stable liquidity and payment cycles relative to its medical costs payable.

Overall Analysis

The data indicates a consistent increase in both medical costs and associated payables over the analyzed period, reflecting growing healthcare expenses. The payables turnover ratio remains relatively stable with slight improvements, suggesting effective management of payment terms despite rising costs. The widening gap between medical costs and payable amounts is controlled through consistent turnover performance, implying that financing and cash flow management strategies are being maintained to support the growing operational scale.

Working Capital

The working capital figures consistently show negative values throughout the periods analyzed, indicating that current liabilities exceed current assets for this entity. From March 2021 to September 2025, the negative working capital fluctuates, with some periods showing improvement and others deterioration. The value starts at approximately -21.1 billion USD in March 2021, improves to a lower negative of about -9.3 billion USD in September 2024, suggesting a reduction in net current liabilities relative to current assets at that point. However, subsequent quarters reveal an increase in the negative figure again, reaching -20.5 billion USD by September 2025. This suggests variability in liquidity management or operational cycles that affect short-term financial positioning.

Revenues, Customers

Revenue figures exhibit a steady upward trend across all periods, indicating consistent growth in top-line performance. Starting at around 69.7 billion USD in March 2021, the revenues increase progressively each quarter, with minor quarter-to-quarter fluctuations within the trend. By September 2025, the revenues reach approximately 112.0 billion USD, reflecting significant growth over the nearly five-year span. This trend suggests effective market expansion, pricing strategies, or volume growth over time.

Working Capital Turnover

No data is available to assess working capital turnover ratios, which limits the ability to interpret how efficiently working capital is being utilized relative to sales.

Summary of Trends and Insights

The entity demonstrates robust revenue growth across the observed periods, signaling strong operational performance and possibly effective demand generation or pricing power. However, the persistently negative working capital, combined with notable fluctuations, points to ongoing challenges or strategies affecting liquidity and short-term financial stability. The temporary improvement in working capital during mid-2024 suggests possible interventions or transient factors that enhanced liquidity, but this was not sustained through the end of the period analyzed. The lack of working capital turnover data restricts a comprehensive evaluation of efficiency in working capital management.

The analysis of the quarterly receivables turnover ratio over the given periods reveals a fluctuating pattern with periods of increase followed by declines. Initially, the ratio rises from 16.35 to a peak of 20.07 by the end of 2021, indicating an improvement in the frequency of receivables collection within that year. However, this is followed by a significant dip to 15.65 in the first quarter of 2022. Subsequently, the ratio rises again, experiencing peaks around 19.23 and 19.43 in mid to late periods, though periodic declines punctuate these gains, reflecting inconsistency in receivables management efficiency over time.

Concurrently, the average receivable collection period, expressed in days, exhibits an inverse trend relative to the receivables turnover ratio, which is consistent with financial theory. The period decreases from 22 days to 18 days by the end of 2021, demonstrating faster collection cycles. This is interrupted by a rise to 23 days in early 2022, followed by fluctuating values generally ranging between 19 and 26 days throughout the remaining periods.

Receivables Turnover Ratio

Shows cyclical variability with peaks around 20.07 and subsequent declines; overall range is approximately 13.8 to 20.07.

Higher turnover ratios correspond to periods of improved cash flow from receivables.

The volatility suggests challenges in maintaining consistent receivables collection efficiency.

Average Receivable Collection Period

Ranges between 18 and 26 days, with periods of improvement and deterioration correlating inversely with the turnover ratio.

Increases in days indicate slower collections, which may impact liquidity negatively if sustained.

The pattern of fluctuations suggests periodic changes in credit policy enforcement or customer payment behaviors.

Overall, the data indicates that the company's receivables management experiences variability with cycles of improvement and regression. Maintaining a lower average collection period and a higher turnover ratio is desirable for optimizing working capital. The observed patterns highlight opportunities to stabilize collections processes to secure more predictable cash flows and reduce the risk associated with receivables.

Payables Turnover Ratio

The payables turnover ratio demonstrates an overall upward trend from the first quarter of 2021 through the third quarter of 2025. Starting at 6.58 in March 2021, the ratio exhibits fluctuations but generally increases over the period, reaching values around 7.3 to 7.7 in recent quarters. This indicates the company is turning over its payables more frequently, suggesting efficient management of payables and possibly improved supplier negotiations or cash flow management.

Average Payables Payment Period

The average payables payment period, measured in days, shows a decreasing trend over time. From 56 days in March 2021, the period shortens to approximately 49-50 days by the end of 2024 and into 2025. This reduction signifies that the company is paying its suppliers faster, aligning with the increasing payables turnover ratio. Shorter payment periods can reflect stronger liquidity positions or strategic efforts to maintain good supplier relationships.

Relationship Between Metrics

There is an inverse relationship between the payables turnover ratio and the average payment period, as expected. As the turnover ratio rises, the average payment period declines, confirming consistent and coherent cash management practices. The trends across both metrics suggest an improvement in operational efficiency regarding accounts payable processes.