Analysis of Debt
Total Debt (Carrying Amount)
Humana Inc., balance sheet: debt
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
- Book overdraft
- The book overdraft exhibited a generally upward trend over the analyzed period. Starting at 225 million US dollars at the end of 2019, it increased to 320 million in 2020 and slightly rose to 326 million in 2021. A minor decline occurred in 2022, with the figure falling to 298 million, followed by a notable increase to 353 million in 2023. Overall, this indicates fluctuating but mostly growing short-term liquidity obligations within the company.
- Short-term debt
- Short-term debt showed considerable volatility across the periods. It decreased from 699 million US dollars at the end of 2019 to 600 million in 2020. Subsequently, a sharp rise was observed in 2021, when short-term debt surged significantly to 1,953 million, further increasing slightly to 2,092 million in 2022. In 2023, there was a reduction to 1,443 million. This pattern suggests fluctuating short-term borrowing, with a peak within the 2021-2022 period that may reflect strategic financing decisions or working capital management adjustments.
- Long-term debt
- Long-term debt showed substantial growth throughout the period. Beginning at 4,967 million US dollars at the end of 2019, it increased steadily to 6,060 million in 2020 and then more than doubled to 10,541 million by the end of 2021. A decrease was recorded in 2022, with the amount dropping to 9,034 million, followed by an increase again to 10,213 million in 2023. The overall trend demonstrates a significant rise in long-term obligations, reflecting potential capital investment, refinancing, or increased leverage strategies.
- Total debt (carrying amount)
- Total debt followed a pattern similar to that of long-term debt with notable growth. It rose from 5,891 million US dollars at the end of 2019 to 6,980 million in 2020, then increased sharply to 12,820 million in 2021. A slight decrease to 11,424 million occurred in 2022, with a moderate increase to 12,009 million in 2023. These movements suggest an overall expansion in indebtedness, heavily influenced by the changes in long-term debt, with some short-term fluctuations impacting the total amount.
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Book overdraft | 353) |
| Commercial paper | 871) |
| Senior notes | 10,600) |
| Term loans | —) |
| Total debt (fair value) | 11,824) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.63%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.68% | 871) | 49) | |
| 3.85% | 572) | 22) | |
| 4.50% | 598) | 27) | |
| 5.70% | 498) | 28) | |
| 1.35% | 688) | 9) | |
| 3.95% | 537) | 21) | |
| 5.75% | 495) | 28) | |
| 5.75% | 495) | 28) | |
| 3.70% | 590) | 22) | |
| 3.13% | 433) | 14) | |
| 4.88% | 496) | 24) | |
| 2.15% | 743) | 16) | |
| 5.88% | 750) | 44) | |
| 5.95% | 840) | 50) | |
| 8.15% | 261) | 21) | |
| 4.63% | 396) | 18) | |
| 4.95% | 740) | 37) | |
| 4.80% | 396) | 19) | |
| 3.95% | 529) | 21) | |
| 5.50% | 728) | 40) | |
| Total | 11,656) | 540) | |
| 4.63% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 540 ÷ 11,656 = 4.63%