Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the quarterly financial data reveals several trends in the company's operational efficiency metrics between March 2020 and March 2025.
- Receivables Turnover
- The receivables turnover ratio exhibits some fluctuations over the observed periods. Starting from 19.86 in March 2021, it declines to a low of 14.88 in June 2023 before rising again to reach 19.43 in September 2024. This pattern indicates varying effectiveness in the company's ability to collect receivables, with a notable dip in mid-2023 and a recovery towards late 2024. The overall range is between approximately 14.88 and 20.07, suggesting moderate volatility.
- Average Receivable Collection Period
- The average receivable collection period, inversely related to receivables turnover, shows a corresponding inverse pattern. It ranges from 18 days (March 2021 and several other quarters) up to 26 days in December 2023. The longer collection periods appear during mid to late 2023 and early 2024, which aligns with the lower receivables turnover ratios, indicating slower collections during those quarters.
- Payables Turnover
- Payables turnover remains relatively stable with a slight upward trend over the time frame. Starting at 7.29 in March 2021, it dips slightly during mid-2021 and early 2022 but gradually increases to around 7.72 in September 2024. This suggests a modest improvement in the frequency of payments to suppliers or creditors.
- Average Payables Payment Period
- The average payables payment period fluctuates between 47 and 56 days, with a slight general decline towards the later periods. It starts near 50 days in March 2021, peaks at 56 days in June 2021, and then trends downwards to 47-50 days by early 2025. This indicates a slight acceleration in payment timing to creditors over the years.
- Working Capital Turnover
- No data is available for the working capital turnover ratio throughout the observed periods, preventing any analysis or conclusions regarding this aspect of operational efficiency.
In summary, the company demonstrates varying efficiency in receivables collection, with performance dips followed by recoveries. Payables management appears more consistent with a slight trend toward quicker payments. The absence of data on working capital turnover limits a full assessment of operational asset utilization.
Turnover Ratios
Average No. Days
Receivables Turnover
UnitedHealth Group Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revenues, customers | 108,542) | 99,256) | 99,177) | 97,858) | 98,785) | 93,248) | 91,364) | 91,788) | 91,133) | 81,932) | 80,381) | 80,037) | 79,782) | 72,930) | 71,834) | 70,765) | 69,744) | 65,022) | 64,764) | 61,797) | 64,056) | |||||||
| Accounts receivable, net | 26,936) | 22,365) | 20,024) | 23,115) | 27,197) | 21,276) | 20,673) | 17,952) | 22,414) | 17,681) | 17,047) | 18,718) | 18,871) | 14,216) | 14,152) | 14,587) | 15,980) | 12,870) | 12,171) | 12,546) | 14,613) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 15.03 | 17.66 | 19.43 | 16.49 | 13.80 | 17.27 | 17.23 | 19.23 | 14.88 | 18.22 | 18.37 | 16.27 | 15.65 | 20.07 | 19.60 | 18.53 | 16.35 | 19.86 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 5.78 | 6.06 | 5.85 | 5.94 | 6.11 | 6.11 | 6.15 | 6.52 | 6.89 | 7.02 | 7.03 | 6.33 | 6.20 | 6.64 | 6.61 | 6.58 | 6.13 | 5.40 | — | — | — | |||||||
| Elevance Health Inc. | 14.42 | 18.00 | 19.84 | 17.60 | 15.98 | 18.08 | 17.93 | 18.82 | 16.53 | 18.81 | 19.51 | 18.80 | 16.67 | 20.66 | 18.93 | 18.81 | 17.39 | 19.72 | — | — | — | |||||||
| Intuitive Surgical Inc. | 7.13 | 6.82 | 6.82 | 6.83 | 6.49 | 6.30 | 7.12 | 7.37 | 6.95 | 6.60 | 7.20 | 7.11 | 6.52 | 7.30 | 7.90 | 7.38 | 6.96 | 6.75 | — | — | — | |||||||
| Medtronic PLC | 5.42 | 5.28 | 5.42 | 5.39 | 5.44 | 5.21 | 5.23 | 5.48 | 5.85 | 5.71 | 5.84 | 5.79 | 5.82 | 5.51 | 5.35 | 5.21 | 5.73 | 6.22 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Receivables turnover
= (Revenues, customersQ1 2025
+ Revenues, customersQ4 2024
+ Revenues, customersQ3 2024
+ Revenues, customersQ2 2024)
÷ Accounts receivable, net
= (108,542 + 99,256 + 99,177 + 97,858)
÷ 26,936 = 15.03
2 Click competitor name to see calculations.
Over the observed periods, revenues demonstrated an overall upward trajectory, increasing from approximately $64 billion in early 2020 to over $108 billion by the first quarter of 2025. This consistent growth reflects a robust expansion in customer-related revenue streams, despite some quarters presenting minor fluctuations in growth rates.
Accounts receivable, net, exhibited considerable variability over the same time frame. Beginning around $14.6 billion in March 2020, the figure generally increased with intermittent declines. Notably, there were pronounced peaks in early 2023 and mid-2024, with values exceeding $22 billion and approaching $27 billion respectively. Such fluctuations suggest changing credit terms or collection dynamics that could impact cash flow management.
The receivables turnover ratio, available for select quarters starting from mid-2020, showed a pattern of oscillation without a clear sustained trend. Initial values near 20.0 dropped to lower levels around 13.8 in late 2023 before rising again in subsequent quarters. This indicates variability in the efficiency of converting receivables into cash, potentially influenced by seasonal factors or shifts in client payment behaviors. Despite the fluctuations, turnover ratios mostly remained within a range that suggests moderate collection performance over the periods analyzed.
- Revenue Trends
- Consistent increase from $64 billion to over $108 billion in five years, indicating steady business growth.
- Accounts Receivable, net
- Marked increase with volatility, peaks exceeding $27 billion in late periods, pointing to changes in credit management or customer payment cycles.
- Receivables Turnover Ratio
- Oscillating pattern without a definitive trend, ranging approximately from 13.8 to 20.0, reflecting variable collection efficiency over time.
Payables Turnover
UnitedHealth Group Inc., payables turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Medical costs | 73,411) | 67,035) | 65,957) | 65,458) | 65,735) | 62,231) | 59,550) | 60,268) | 59,845) | 53,591) | 52,635) | 52,093) | 52,523) | 48,159) | 47,302) | 46,546) | 44,904) | 42,082) | 41,636) | 34,678) | 41,000) | |||||||
| Medical costs payable | 37,136) | 34,224) | 33,951) | 32,547) | 34,032) | 32,395) | 32,792) | 31,947) | 31,809) | 29,056) | 29,064) | 28,978) | 28,676) | 24,483) | 25,918) | 25,131) | 24,833) | 21,872) | 21,167) | 19,200) | 22,772) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | 7.32 | 7.72 | 7.64 | 7.77 | 7.28 | 7.47 | 7.11 | 7.08 | 6.86 | 7.26 | 7.07 | 6.90 | 6.78 | 7.63 | 6.98 | 6.97 | 6.58 | 7.29 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 4.44 | 4.46 | 4.54 | 4.42 | 4.33 | 4.19 | 4.55 | 4.28 | 4.44 | 4.15 | 4.67 | 4.25 | 4.02 | 4.21 | 4.55 | 4.43 | 3.97 | 3.80 | — | — | — | |||||||
| Elevance Health Inc. | 7.87 | 8.10 | 8.17 | 8.09 | 7.54 | 7.72 | 7.61 | 7.54 | 7.57 | 7.47 | 7.48 | 7.35 | 7.28 | 7.59 | 7.31 | 7.30 | 7.31 | 7.75 | — | — | — | |||||||
| Intuitive Surgical Inc. | 10.39 | 14.05 | 11.88 | 12.91 | 12.64 | 12.69 | 11.66 | 11.10 | 12.99 | 13.78 | 12.01 | 12.68 | 14.36 | 14.45 | 14.13 | 13.71 | 14.80 | 18.35 | — | — | — | |||||||
| Medtronic PLC | 4.95 | 4.65 | 5.60 | 5.09 | 4.84 | 4.03 | 4.68 | 4.60 | 4.62 | 4.46 | 5.14 | 5.41 | 5.67 | 4.98 | 5.56 | 5.19 | 5.56 | 4.72 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Payables turnover
= (Medical costsQ1 2025
+ Medical costsQ4 2024
+ Medical costsQ3 2024
+ Medical costsQ2 2024)
÷ Medical costs payable
= (73,411 + 67,035 + 65,957 + 65,458)
÷ 37,136 = 7.32
2 Click competitor name to see calculations.
The financial data reveals significant trends in medical costs, medical costs payable, and payables turnover over the reported periods. These indicators provide insight into the company's cost management, payment practices, and operational efficiency.
- Medical Costs
- The medical costs show a clear increasing trend from March 31, 2020, through March 31, 2025. Starting at $41,000 million in the first quarter of 2020, expenses fluctuate modestly in the initial quarters but overall rise steadily, reaching $73,411 million by the first quarter of 2025. Notably, there is an accelerated increase beginning in 2023, where quarterly values jump from approximately $59,845 million to over $67,000 million by 2024, indicating rising healthcare expenditures or greater service consumption.
- Medical Costs Payable
- The amounts payable corresponding to medical costs also show an upward trend over the period. Beginning at $22,772 million in March 2020, the payables increase, with some fluctuations, to $37,136 million by March 2025. The growth appears relatively steady with occasional small declines or plateaus, such as during 2021 and early 2024, but overall a marked increase parallels the upward trajectory of medical costs. The medical costs payable typically trails medical costs, implying a consistent but slightly delayed payment pattern.
- Payables Turnover
- The payables turnover ratio, available from September 30, 2020, onwards, generally ranges between approximately 6.58 and 7.77. The ratio shows minor fluctuations quarter to quarter, with the highest value observed at 7.77 in September 2024 and the lowest around 6.58 during June 2020 and Q2 2021. This relative stability suggests steady efficiency in managing payables, indicating consistent payment cycles without significant deterioration or improvement over the measured periods.
In summary, medical costs and medical costs payable have both increased substantially over the reported five-year span, reflecting higher expenditure and liabilities. The payables turnover ratio remains fairly stable, suggesting the company maintains consistent payment timing despite rising costs. The data highlights an escalating cost environment while preserving operational stability in managing payables.
Working Capital Turnover
UnitedHealth Group Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 96,285) | 85,779) | 92,258) | 92,038) | 88,942) | 78,437) | 91,905) | 89,869) | 93,895) | 69,069) | 82,937) | 68,356) | 69,029) | 61,758) | 61,610) | 58,916) | 59,508) | 53,718) | 54,821) | 58,918) | 58,807) | |||||||
| Less: Current liabilities | 113,471) | 103,769) | 101,565) | 104,670) | 104,431) | 99,054) | 114,179) | 112,981) | 116,482) | 89,237) | 100,935) | 88,698) | 88,170) | 78,292) | 79,575) | 76,557) | 80,641) | 72,420) | 66,597) | 69,883) | 78,606) | |||||||
| Working capital | (17,186) | (17,990) | (9,307) | (12,632) | (15,489) | (20,617) | (22,274) | (23,112) | (22,587) | (20,168) | (17,998) | (20,342) | (19,141) | (16,534) | (17,965) | (17,641) | (21,133) | (18,702) | (11,776) | (10,965) | (19,799) | |||||||
| Revenues, customers | 108,542) | 99,256) | 99,177) | 97,858) | 98,785) | 93,248) | 91,364) | 91,788) | 91,133) | 81,932) | 80,381) | 80,037) | 79,782) | 72,930) | 71,834) | 70,765) | 69,744) | 65,022) | 64,764) | 61,797) | 64,056) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 4.17 | 4.42 | 4.63 | 4.35 | 4.83 | 4.54 | 4.15 | 4.39 | 4.21 | 4.48 | 3.92 | 3.63 | 4.13 | 3.87 | 3.98 | 4.02 | 3.99 | 4.06 | — | — | — | |||||||
| Elevance Health Inc. | 8.11 | 7.85 | 6.87 | 6.92 | 8.59 | 7.83 | 7.92 | 7.69 | 7.60 | 8.37 | 9.11 | 8.85 | 8.65 | 7.23 | 6.79 | 6.67 | 5.38 | 6.39 | — | — | — | |||||||
| Intuitive Surgical Inc. | 1.42 | 1.56 | 1.42 | 1.23 | 1.17 | 1.14 | 0.95 | 1.03 | 1.15 | 1.29 | 1.21 | 1.17 | 1.26 | 1.22 | 1.17 | 1.03 | 0.88 | 0.77 | — | — | — | |||||||
| Medtronic PLC | 2.79 | 2.90 | 2.54 | 2.57 | 2.46 | 2.47 | 2.81 | 2.82 | 3.84 | 2.97 | 2.21 | 2.13 | 2.15 | 2.15 | 2.02 | 2.00 | 2.44 | 2.48 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Working capital turnover
= (Revenues, customersQ1 2025
+ Revenues, customersQ4 2024
+ Revenues, customersQ3 2024
+ Revenues, customersQ2 2024)
÷ Working capital
= (108,542 + 99,256 + 99,177 + 97,858)
÷ -17,186 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital has exhibited a consistently negative value across all reported quarters, signifying potential short-term liquidity challenges. From March 2020 to December 2021, there is notable volatility with no clear upward or downward trend; values fluctuate between approximately -10,965 million and -21,133 million USD. From March 2022 onwards, the negative working capital deepens, peaking around -23,112 million in June 2023, before improving towards March 2025, where it records a less negative value of -17,186 million USD. Overall, the magnitude of the negative working capital remains substantial throughout, indicating sustained current liabilities exceeding current assets.
- Revenues, Customers
- Revenues have shown a consistent upward trajectory over the entire period, reflecting growth in the company's customer base or billing. Starting from 64,056 million USD in March 2020, there is steady growth quarter-over-quarter, with occasional slight fluctuations mostly in the short term. By the end of the period, specifically March 2025, revenues reach 108,542 million USD, marking significant growth of approximately 69% compared to the start of the series. The trend suggests strong demand and effective revenue generation capabilities throughout the periods, including during times when working capital was under pressure.
- Working Capital Turnover
- No data is available for working capital turnover, preventing assessment of efficiency in generating revenues relative to the working capital base.
- Summary of Financial Trends
- The data reveals contrasting patterns between liquidity and revenue growth. While the company is experiencing sustained revenue expansion, its working capital remains consistently negative and volatile, which may signal potential issues with short-term obligations or a strategic choice in managing operating capital. The negative working capital does not appear to hinder revenue growth, but the magnitude and fluctuations suggest a need for close monitoring to ensure operational stability and mitigate liquidity risk. The absence of working capital turnover data limits further analysis of operational efficiency relative to capital employed.
Average Receivable Collection Period
UnitedHealth Group Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | 15.03 | 17.66 | 19.43 | 16.49 | 13.80 | 17.27 | 17.23 | 19.23 | 14.88 | 18.22 | 18.37 | 16.27 | 15.65 | 20.07 | 19.60 | 18.53 | 16.35 | 19.86 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 24 | 21 | 19 | 22 | 26 | 21 | 21 | 19 | 25 | 20 | 20 | 22 | 23 | 18 | 19 | 20 | 22 | 18 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 63 | 60 | 62 | 61 | 60 | 60 | 59 | 56 | 53 | 52 | 52 | 58 | 59 | 55 | 55 | 55 | 60 | 68 | — | — | — | |||||||
| Elevance Health Inc. | 25 | 20 | 18 | 21 | 23 | 20 | 20 | 19 | 22 | 19 | 19 | 19 | 22 | 18 | 19 | 19 | 21 | 19 | — | — | — | |||||||
| Intuitive Surgical Inc. | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | 50 | 46 | 49 | 52 | 54 | — | — | — | |||||||
| Medtronic PLC | 67 | 69 | 67 | 68 | 67 | 70 | 70 | 67 | 62 | 64 | 63 | 63 | 63 | 66 | 68 | 70 | 64 | 59 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 15.03 = 24
2 Click competitor name to see calculations.
The receivables turnover ratio and the average receivable collection period exhibit noticeable fluctuations throughout the observed quarters. The receivables turnover ratio commenced at 19.86 and experienced a decline to lows around 14.88 and 13.8 in certain quarters before rising again towards values near 19.43. This indicates variability in the efficiency with which receivables are being collected over these periods.
Correspondingly, the average receivable collection period shows an inverse pattern, ranging from approximately 18 days to as high as 26 days. Lower days are observed when the turnover ratio is higher, and vice versa. For example, when the receivables turnover ratio decreased to around 14.88, the average collection period simultaneously peaked at approximately 25 days, indicating slower collection of receivables during those quarters.
Overall, the data reflects intermittent variations in receivables management efficiency. Periods with higher turnover ratios coincide with shorter collection cycles, suggesting improved cash inflows. Conversely, periods with lower turnover ratios correspond to longer collection periods, which could signal potential delays in receiving payments. The pattern does not show a consistent improvement or deterioration trend but rather cyclical changes over the quarters analyzed.
- Receivables Turnover Ratio
- Varied between approximately 13.8 and 20.07, indicating fluctuating efficiency in converting receivables into cash.
- Lowest ratios observed around mid to late periods, implying reduced collection effectiveness during those times.
- Higher turnover ratios tend to recur periodically, suggesting temporary improvements in collections.
- Average Receivable Collection Period
- Ranges from 18 to 26 days, generally inversely related to the turnover ratio.
- Longer collection periods correspond with lower turnover ratios, indicating slower cash realization from receivables.
- Shorter collection periods appear when turnover ratios increase, signaling enhanced receivables management.
Average Payables Payment Period
UnitedHealth Group Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Payables turnover | 7.32 | 7.72 | 7.64 | 7.77 | 7.28 | 7.47 | 7.11 | 7.08 | 6.86 | 7.26 | 7.07 | 6.90 | 6.78 | 7.63 | 6.98 | 6.97 | 6.58 | 7.29 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | 50 | 47 | 48 | 47 | 50 | 49 | 51 | 52 | 53 | 50 | 52 | 53 | 54 | 48 | 52 | 52 | 56 | 50 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 82 | 82 | 80 | 83 | 84 | 87 | 80 | 85 | 82 | 88 | 78 | 86 | 91 | 87 | 80 | 82 | 92 | 96 | — | — | — | |||||||
| Elevance Health Inc. | 46 | 45 | 45 | 45 | 48 | 47 | 48 | 48 | 48 | 49 | 49 | 50 | 50 | 48 | 50 | 50 | 50 | 47 | — | — | — | |||||||
| Intuitive Surgical Inc. | 35 | 26 | 31 | 28 | 29 | 29 | 31 | 33 | 28 | 26 | 30 | 29 | 25 | 25 | 26 | 27 | 25 | 20 | — | — | — | |||||||
| Medtronic PLC | 74 | 78 | 65 | 72 | 75 | 91 | 78 | 79 | 79 | 82 | 71 | 67 | 64 | 73 | 66 | 70 | 66 | 77 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.32 = 50
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio shows a generally stable pattern with moderate fluctuations over the observed periods. Beginning in the first reported quarter of March 31, 2021, the ratio started at 7.29 and experienced a slight decline in the following quarters, reaching its lowest point at 6.58 in June 30, 2021. Subsequently, the ratio gradually increased, peaking at 7.77 on September 30, 2024. This indicates a tendency toward more efficient management of payables over time, with a higher ratio implying quicker payments to suppliers. Minor declines occurred intermittently, such as the drop to 6.78 in June 30, 2022, but the overall trend evidences improvement through the most recent period (March 31, 2025), which registered 7.32.
- Average Payables Payment Period
- The average payables payment period, measured in number of days, exhibits a generally inverse relationship with the payables turnover ratio, reflecting the number of days the company takes to settle its payables. Initially recorded at 50 days on March 31, 2021, the period lengthened to 56 days by June 30, 2021, coinciding with a dip in the payables turnover ratio. Thereafter, a progressive shortening of the payment period occurred, reaching a low of 47 days on both September 30, 2024, and March 31, 2025. This trend reveals an improvement in payment efficiency, with the company paying vendors in fewer days on average. Occasional slight increases in the period appeared, such as 54 days in June 30, 2022, but these were temporary interruptions in an otherwise downward trend.
- Overall Insights
- The observed data suggest a steady enhancement in the company’s management of accounts payable from 2021 through early 2025. The increase in payables turnover ratio coupled with a decrease in the average payables payment period points to more prompt payments to suppliers and potentially improved liquidity or operational efficiency. Stability in these metrics over the latest periods indicates maintained discipline in managing payables. These patterns support a view of consistent financial stewardship in the area of trade payables.