Financial statement analysis and common stock valuation

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the UnitedHealth Group Inc. assets. Operating performance ratios describe the relationship between the UnitedHealth Group Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a UnitedHealth Group Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Analysis of Profitability Ratios

Measures the income of UnitedHealth Group Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the UnitedHealth Group Inc. assets. Operating performance ratios describe the relationship between the UnitedHealth Group Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently UnitedHealth Group Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Common Stock Valuation Ratios

Relative valuation technique determine the value of UnitedHealth Group Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of UnitedHealth Group Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Aggregate Accruals

Financial reporting quality relates to the accuracy with which UnitedHealth Group Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of UnitedHealth Group Inc. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by UnitedHealth Group Inc..

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of UnitedHealth Group Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)