Humana Inc., adjustment to net income attributable to Humana

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Humana (as reported)	2,489)	2,806)	2,933)	3,367)	2,707)
Add: Change in unrealized investment gains (losses), net of tax	287)	(1,401)	(275)	304)	345)
Less: Reclassification adjustment for net realized (gains) losses included in investment income, net of tax	18)	55)	(80)	(70)	(26)
Net income attributable to Humana (adjusted)	2,794)	1,460)	2,578)	3,601)	3,026)

Download chart

Humana Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	2.36%	3.03%	3.54%	4.43%	4.20%
Adjusted net profit margin	2.65%	1.58%	3.11%	4.74%	4.70%
Return on Equity (ROE)
Reported ROE	15.31%	18.33%	18.24%	24.53%	22.49%
Adjusted ROE	17.18%	9.54%	16.03%	26.23%	25.14%
Return on Assets (ROA)
Reported ROA	5.29%	6.52%	6.61%	9.63%	9.31%
Adjusted ROA	5.94%	3.39%	5.81%	10.30%	10.41%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Humana Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Humana Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Humana Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Download chart

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)
External revenues	105,305)	92,488)	82,877)	76,001)	64,387)
Profitability Ratio
Net profit margin¹	2.36%	3.03%	3.54%	4.43%	4.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Humana	2,794)	1,460)	2,578)	3,601)	3,026)
External revenues	105,305)	92,488)	82,877)	76,001)	64,387)
Profitability Ratio
Adjusted net profit margin²	2.65%	1.58%	3.11%	4.74%	4.70%

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Humana ÷ External revenues
= 100 × 2,489 ÷ 105,305 = 2.36%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Humana ÷ External revenues
= 100 × 2,794 ÷ 105,305 = 2.65%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Humana Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)
Stockholders’ equity	16,262)	15,311)	16,080)	13,728)	12,037)
Profitability Ratio
ROE¹	15.31%	18.33%	18.24%	24.53%	22.49%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Humana	2,794)	1,460)	2,578)	3,601)	3,026)
Stockholders’ equity	16,262)	15,311)	16,080)	13,728)	12,037)
Profitability Ratio
Adjusted ROE²	17.18%	9.54%	16.03%	26.23%	25.14%

2023 Calculations

¹ ROE = 100 × Net income attributable to Humana ÷ Stockholders’ equity
= 100 × 2,489 ÷ 16,262 = 15.31%

² Adjusted ROE = 100 × Adjusted net income attributable to Humana ÷ Stockholders’ equity
= 100 × 2,794 ÷ 16,262 = 17.18%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Humana Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)
Total assets	47,065)	43,055)	44,358)	34,969)	29,074)
Profitability Ratio
ROA¹	5.29%	6.52%	6.61%	9.63%	9.31%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Humana	2,794)	1,460)	2,578)	3,601)	3,026)
Total assets	47,065)	43,055)	44,358)	34,969)	29,074)
Profitability Ratio
Adjusted ROA²	5.94%	3.39%	5.81%	10.30%	10.41%

2023 Calculations

¹ ROA = 100 × Net income attributable to Humana ÷ Total assets
= 100 × 2,489 ÷ 47,065 = 5.29%

² Adjusted ROA = 100 × Adjusted net income attributable to Humana ÷ Total assets
= 100 × 2,794 ÷ 47,065 = 5.94%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Humana Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Humana Inc. (NYSE:HUM)

Analysis of Investments