UnitedHealth Group Inc. (NYSE:UNH)

Receivables Turnover

The receivables turnover ratio demonstrates noticeable fluctuations over the observed periods. Starting at 19.86, it experiences a decline in mid-2021 to values around 16, followed by a recovery towards the end of 2021 and fluctuations within the 14.88 to 19.6 range thereafter. The ratio generally fluctuates without a clear upward or downward trend, suggesting variability in the efficiency of collecting receivables over time.

Payables Turnover

The payables turnover ratio remains relatively stable throughout the periods, ranging approximately from 6.58 to 7.77. Minor variations occur, with some increases seen toward late 2024 and early 2025. Overall, this indicates a consistent ability to manage payables, with slight improvements in payment efficiency visible during some quarters.

Average Receivable Collection Period

The average collection period in days varies between 18 and 26 days. A slight increase is observed in early 2022 and again in late 2023 and early 2024, indicating slower collection periods during those times. Periods of reduction in collection days suggest intermittent improvements in cash collection speed. The oscillations indicate occasional challenges in maintaining consistent collection efficiency.

Average Payables Payment Period

The average payables payment period fluctuates within a narrow range of approximately 47 to 56 days. The highest values occur in mid-2020 and early 2022, with a moderate reduction toward late 2021 and late 2023. These changes indicate some variability in payment timing to suppliers, with tendencies toward quicker payments during certain quarters but no consistent trend over time.

Summary of Trends and Insights

Overall, the turnover ratios and payment periods suggest that the company maintains a broadly stable financial management of receivables and payables with some volatility. Receivables turnover and collection periods exhibit more pronounced fluctuations compared to payables. The pattern may reflect varying operational or market conditions affecting customer payments. Payables metrics show steadier management with moderate shifts, potentially reflecting supplier agreements or cash management strategies. No sustained directional trend is evident, indicating ongoing management efforts to balance collection efficiency with payment obligations under fluctuating conditions.

The analysis reveals several notable trends in revenues, accounts receivable, and receivables turnover over the examined periods. Revenue figures exhibit a general upward trajectory from early 2020 through mid-2025, with occasional quarter-to-quarter fluctuations. Starting around $64 billion in the first quarter of 2020, revenues increased steadily to surpass $110 billion by the second quarter of 2025, indicating sustained growth in the company's top line.

Accounts receivable, net, display more pronounced volatility and a less consistent pattern relative to revenues. Initial levels near $14.6 billion in the first quarter of 2020 dropped somewhat during the middle quarters of that year but then began a broadly upward movement through subsequent years, peaking above $27 billion in mid-2024. Periodic declines and rebounds suggest variability in collections or billing cycles, potentially influenced by operational factors or customer payment behaviors.

The receivables turnover ratio, representing the efficiency of converting receivables into cash, varies between approximately 13.8 and 20.07 across the quarters. Notably, turnover values show considerable quarter-over-quarter fluctuations rather than a clear long-term trend. Higher values generally imply more efficient collections, with peaks observed intermittently, such as near 20.07 in late 2020 and around 19.43 to 19.23 in 2024 and 2023 respectively. Lower turnover values tend to coincide with quarters where accounts receivable peaked or revenues showed substantial increases, indicating possible lag in collections relative to sales.

Revenues

Growth from approximately $64 billion in early 2020 to over $110 billion by mid-2025, with steady quarterly increases and occasional flattening.

Accounts receivable, net

Variable pattern with initial decline in 2020, followed by consistent growth and peaks exceeding $27 billion in mid-2024, reflecting fluctuations in receivables management or payment terms.

Receivables turnover

Irregular fluctuations within a range of about 13.8 to 20.07, suggesting changes in collection efficiency that do not follow a definitive upward or downward trend; periods of lower turnover correspond to elevated receivable balances.

Overall, the data indicate the company has been successful in increasing revenues across the period examined, though the collection of receivables shows variability that warrants continued monitoring. The receivables turnover ratio’s volatility implies that while sales volume grows, the timing and efficiency of converting those sales into cash inflows may be impacted by external or internal factors affecting accounts receivable management.

The analyzed financial data over multiple quarters indicate several notable trends concerning medical costs, medical costs payable, and payables turnover ratios.

Medical Costs (US$ in millions)

Medical costs demonstrated a general upward trend throughout the observed periods. Starting at 41,000 million USD in March 2020, costs experienced a decline in the following quarter but resumed growth afterwards. By December 2021, costs reached 48,159 million USD and continued rising to 78,585 million USD by June 2025. There are minor fluctuations in some quarters, such as slight decreases or stabilization, but the overall trajectory shows a significant increase, reflecting higher medical expenditures over time.

Medical Costs Payable (US$ in millions)

The medical costs payable figures similarly increased over the period but with more variability than the costs themselves. Starting at 22,772 million USD in March 2020, payables rose to a peak at 25,918 million USD by September 2021, then showed periods of both increase and decline. Payables rose again thereafter, ending at 38,427 million USD in June 2025. This indicates an increase in outstanding obligations, though some quarters show reductions that may reflect payment timing or operational adjustments.

Payables Turnover (ratio)

Payables turnover ratios, available from September 2020 onwards, displayed a relatively stable pattern ranging approximately from 6.58 to 7.77. The ratio fluctuated moderately, with some quarters showing higher turnover, such as 7.77 in September 2024, indicating a faster rate of paying off payables, and lower values around 6.58 in June 2020, denoting slower payments. The consistency around values above 6.5 suggests a generally steady efficiency in managing payables over the examined timeframe.

Overall, the data reflects a sustained increase in medical costs and corresponding payables, with payables turnover ratios maintaining relative stability. This may denote growing operational scale or increased healthcare service utilization, accompanied by consistent management of payables despite increasing absolute values.

The financial data reveals notable trends in key financial metrics over the analyzed periods.

Working Capital

The working capital figures exhibit significant fluctuations, predominantly negative throughout all reported periods. Starting at -19,799 million USD in the first quarter of 2020, the value showed some improvement by mid-2020 but then generally deepened its negative position toward the end of 2020. From 2021 through 2023, working capital remained persistently negative, reaching its lowest recorded point of -23,112 million USD in mid-2023. A gradual trend of improvement is observable starting in 2024, with the negative working capital figure improving from -17,990 million USD in the first quarter of 2024 to approximately -17,082 million USD in the third quarter of 2025. Despite fluctuations, working capital stayed at a substantially negative level, which may imply continued reliance on short-term liabilities exceeding short-term assets.

Revenues from Customers

Revenues demonstrate a consistent upward trajectory through the entire timeline. From a baseline of approximately 64,056 million USD in the first quarter of 2020, revenues increased steadily, reaching 73,930 million USD by the end of 2021. This positive momentum accelerated in subsequent years, with quarterly revenues surpassing 91,000 million USD throughout 2023. The trend continued strong into 2024 and mid-2025, culminating in a peak revenue of roughly 110,508 million USD by the second quarter of 2025. This sustained growth in revenues indicates expanded customer volume or increased sales, reflecting healthy business expansion.

Working Capital Turnover

The working capital turnover ratio data is missing for the entire period, preventing direct analysis of operational efficiency concerning working capital usage. Its absence suggests either unavailability or non-calculation during these quarters.

In summary, while working capital remains consistently negative with some signs of gradual improvement starting in 2024, the company has achieved robust and continuous revenue growth over the period spanning 2020 through mid-2025. The persistent negative working capital warrants attention for potential liquidity or operational efficiency issues, despite the encouraging sales expansion reflected in revenues. The missing working capital turnover ratio precludes an evaluation of the efficiency with which the company converts its working capital into revenue.

Receivables Turnover Ratio

The receivables turnover ratio exhibits fluctuations over the observed quarters, with the initial data available from March 31, 2020. The ratio starts at 19.86 and sees a slight decline in the subsequent quarter to 16.35, followed by a rise reaching 20.07 by March 31, 2022. After this peak, the ratio undergoes volatility, decreasing to a low of 13.8 by March 31, 2024, then recovering to 19.43 by September 30, 2024. Towards the end of the period, the ratio settles around the mid to high teens, ending at 17.29 by June 30, 2025. This pattern indicates periods of varying efficiency in receivables collection, with occasional dips suggesting elongation in the collection cycle or changes in credit policy.

Average Receivable Collection Period

The average receivable collection period inversely mirrors the receivables turnover ratio, as expected. From the earliest available data, it starts at 18 days on March 31, 2020, rising to 22 days in June 30, 2020, then fluctuating around a range of 18 to 26 days in subsequent quarters. The period peaks at 26 days on March 31, 2024, corresponding to the lowest receivables turnover ratio observed in the same timeframe, indicating slower collection processes. There is no consistent trend of steady improvement or deterioration; instead, the collection period oscillates, often returning close to 20-22 days. This suggests ongoing adjustments in credit or collections management, with occasional delays possibly related to operational factors or customer payment behaviors.

Overall Observations

Both metrics, receivables turnover and average collection period, reflect cyclical variations rather than a linear trend. The oscillations suggest the company experiences shifts in how efficiently it manages its receivables, which might be influenced by external market conditions, internal policy changes, or seasonal factors. The absence of a clear improving or deteriorating trend indicates a stable but variable receivables management environment over the periods analyzed.

The payables turnover ratio exhibits a generally increasing trend over the analyzed quarterly periods. Starting at approximately 7.29 in March 2021, it experiences minor fluctuations but maintains an upward trajectory, reaching around 7.42 by June 2025. This pattern suggests a gradual improvement in the company's efficiency in managing its payables, indicating faster payment cycles or better negotiation with suppliers over time.

Conversely, the average payables payment period, measured in days, demonstrates a slight but consistent decrease throughout the same timeframe. Beginning at 50 days in March 2021, it fluctuates modestly but trends downward to approximately 49 days by June 2025. This reduction aligns with the increasing payables turnover ratio, confirming that the company is shortening the duration it takes to settle its payables.

Overall, these two metrics in tandem reveal a tightening of the payables management process. The firm appears to be paying its suppliers more promptly as time progresses, which could reflect improved cash flow management or strategic adjustments in working capital policies. The relative stability with minor fluctuations indicates controlled but steady enhancements rather than abrupt changes.

Payables Turnover Ratio Trends

Increased from about 7.29 to 7.42 between March 2021 and June 2025, showing improved payment frequency.

Average Payables Payment Period Trends

Reduced from 50 days to 49 days over the same period, indicating quicker payments to suppliers.

Interpretation

The combination of a rising turnover ratio and a shortening payment period signals enhanced efficiency in payables management and firm control over supplier payments.