Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Profitability Ratios (Summary)
Humana Inc., profitability ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Operating Profit Margin
- The operating profit margin shows an improving trend from the first available data point at 4.96% in March 2020, reaching a peak of 7.77% by December 2020. Following this peak, a downward trend is observed overall, with fluctuations around 4% to 4.5% during 2022 and early 2023. From mid-2023 onward, the margin declines steadily, dropping to 2.42% by the latest data point in September 2024.
- Net Profit Margin
- The net profit margin reflects a somewhat similar pattern to the operating profit margin, starting at 4.20% in March 2020 and increasing to a peak of 5.67% by December 2020. Thereafter, a general decline can be seen with some recovery phases, hovering around 3.0% to 3.5% through 2022 and early 2023, followed by a continuation of the decline, reaching 1.19% in September 2024, which is the lowest point in the observed periods.
- Return on Equity (ROE)
- ROE begins at 22.49% in March 2020, rising to a high of 26.34% in December 2020. There is a sharp decline in 2021 with values falling to 16.44% by December 2021. Throughout 2022 and early 2023, ROE fluctuates moderately within the range of approximately 17% to 20%, before declining more significantly in the periods that follow. By September 2024, ROE has decreased markedly to 7.74%, indicating reduced efficiency in generating profits from equity.
- Return on Assets (ROA)
- ROA starts at 9.31% in March 2020 and increases, peaking at 10.79% in December 2020. Afterward, the ratio shows a declining pattern, dropping to between 5.9% and 6.7% during 2021 and 2022. In the most recent quarters, ROA continues downward, reaching 2.72% in September 2024. This trend points to decreasing asset profitability over time.
Return on Sales
Return on Investment
Operating Profit Margin
Humana Inc., operating profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||
| External revenues | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2024
+ Income from operationsQ2 2024
+ Income from operationsQ1 2024
+ Income from operationsQ4 2023)
÷ (External revenuesQ3 2024
+ External revenuesQ2 2024
+ External revenuesQ1 2024
+ External revenuesQ4 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Income from operations
- The income from operations exhibits significant volatility over the observed periods. Initially, the values fluctuate moderately, with a peak of 2,435 million US dollars in June 2020, followed by a steep decline to negative 346 million in December 2020. A pattern of recovery is seen afterwards, with occasional drops such as in December 2021 and December 2023 where negative or near-zero values reoccur. For the most recent quarters, income shows a downward trend, with values declining from 1,236 million in March 2024 to 728 million in September 2024, suggesting growing operational challenges or increased costs affecting profitability.
- External revenues
- External revenues present a general upward trajectory across the time frame. Starting from approximately 16,000 million US dollars in early 2019, revenues steadily increase, reaching about 29,323 million in March 2024. This growth trend is consistent despite minor fluctuations, indicating expanding business activities or market penetration. The rate of growth appears to slow slightly towards the final quarters but remains positive, highlighting sustained revenue generation capabilities.
- Operating profit margin
- The operating profit margin displays a varied pattern with early data unavailable, but from mid-2019 onwards, margins have oscillated within a range of approximately 2.4% to 7.8%. The highest margin values, around 7.7%, occurred in late 2019 and early 2020, correlating with the peak income from operations period. Subsequently, margins exhibit a downward trend, dropping below 3% in recent quarters such as September 2024. This contraction suggests increased operating costs or competitive pressures eroding profitability despite rising revenues.
- Overall insights
- The financial data reveals a company experiencing strong revenue growth but facing increasing difficulty in converting revenues into sustained operating profits. The high variability and occasional negative income from operations indicate episodic cost pressures or one-time impacts. The declining operating profit margin alongside rising revenues points to margin compression, which could be driven by factors including increased expenses, investments, or pricing pressures. Continued monitoring of operational efficiency and cost control measures would be advisable given these trends.
Net Profit Margin
Humana Inc., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income attributable to Humana | ||||||||||||||||||||||||||||||
| External revenues | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Net profit margin = 100
× (Net income attributable to HumanaQ3 2024
+ Net income attributable to HumanaQ2 2024
+ Net income attributable to HumanaQ1 2024
+ Net income attributable to HumanaQ4 2023)
÷ (External revenuesQ3 2024
+ External revenuesQ2 2024
+ External revenuesQ1 2024
+ External revenuesQ4 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income Attributable to Humana
- The net income exhibits significant volatility across the reported quarters. Between 2019 and early 2020, net income fluctuated moderately, peaking at 1,828 million USD in June 2020 but also experiencing a notable negative figure of -274 million USD in December 2020. The period from 2021 to 2022 shows recurring swings, including negative net income occurrences in December 2021 and March 2023. The latest quarters through 2024 indicate a declining trend in net income, with values decreasing progressively from 741 million USD in March 2024 to 480 million USD in September 2024, suggesting increasing pressures on profitability or episodic financial challenges.
- External Revenues
- External revenues have shown consistent growth over the timeframe. Starting from approximately 16,000 million USD in early 2019, revenues rose steadily each year, reaching above 26,000 million USD by the end of 2023 and surpassing 29,000 million USD in early to mid-2024. This upward trend reflects ongoing business expansion or increased sales activity. Though there are minor fluctuations quarter-over-quarter, the overall momentum remains positive, indicating strong top-line growth.
- Net Profit Margin
- The net profit margin started showing identifiable values from late 2019, with a peak of 5.67% in December 2020. Thereafter, a downward trend is observable, as margins decline gradually from this high point, moving below 3% in 2023 and dropping further to 1.19% by September 2024. This erosion in margin despite rising revenues suggests increasing costs, operational difficulties, or other factors reducing the efficiency of converting revenue into profit.
- Overall Financial Trend and Insights
- Despite a continuous increase in external revenues, net income has experienced significant fluctuations and an overall decline in recent periods. The disparity between rising revenues and decreasing net profit margins points to heightened expenses or structural challenges impacting profitability. There are intervals of negative net income, indicating periods of losses or extraordinary charges. The diminishing net profit margin alongside fluctuating net income warrants a close examination of cost management, operational efficiency, or market conditions influencing profitability.
Return on Equity (ROE)
Humana Inc., ROE calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income attributable to Humana | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
ROE = 100
× (Net income attributable to HumanaQ3 2024
+ Net income attributable to HumanaQ2 2024
+ Net income attributable to HumanaQ1 2024
+ Net income attributable to HumanaQ4 2023)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Humana
- The net income figures exhibit considerable volatility across the reported quarters. Between March 31, 2019, and December 31, 2019, there is a general decline from 566 million to 512 million USD, followed by a sharp increase reaching a peak of 1828 million USD in June 30, 2020. Subsequently, the trend becomes irregular with notable fluctuations including a negative value of -274 million USD reported in December 31, 2020, indicating a loss during that quarter. Performance improves again with positive values over 800 million USD in early 2021, peaking at 1531 million USD in September 30, 2021, before invoking another loss in December 31, 2021 (-14 million USD). In 2022, net income recovers steadily, reaching 1195 million USD by September 30, followed by another negative figure in December 31, 2022 (-15 million USD). The period from March 31, 2023, onwards shows a downward trajectory with recurring losses and lower positive results, the most recent quarter ending at 480 million USD as of September 30, 2024.
- Stockholders’ Equity
- Stockholders’ equity demonstrates an overall growth trend over the entire period. Starting from 10,841 million USD as of March 31, 2019, equity steadily rises to a peak of 16,260 million USD by September 30, 2021. A slight reduction is seen by December 31, 2021 (16,080 million USD) and through 2022, where values fluctuate in a narrow range between 15,311 and 16,254 million USD. From 2023 through September 30, 2024, equity levels experience moderate volatility but maintain an upward tendency, reaching 17,565 million USD in the latest quarter. Despite periodic declines, the general movement indicates strengthened equity base over time.
- Return on Equity (ROE)
- ROE values are only provided starting from March 31, 2020, and illustrate a downward trend over the course of the reported quarters. Initial ROE figures are quite high, exceeding 22% and reaching a maximum of 26.34% in December 31, 2020. Afterward, a consistent decline is observed with several fluctuations, notable drops to around 16% in the period through December 31, 2021, and a slow recovery to nearly 20% by September 30, 2022. Thereafter, ROE decreases steadily, falling to a low of 7.74% by the quarter ending September 30, 2024. This decline mirrors the instability and negative net income results observed in recent periods, indicating decreasing profitability relative to equity.
- Overall Financial Trends and Insights
- The analysis reveals that net income has experienced significant volatility, including multiple quarters of losses, particularly after 2020. Meanwhile, stockholders' equity has consistently increased, suggesting ongoing investments or retained earnings despite earnings instability. The declining ROE indicates diminishing efficiency in generating profit from equity over time, likely linked to the erratic net income performance. The combination of these factors points to a period of financial uncertainty with challenges in maintaining consistent profitability while continuing to build equity.
Return on Assets (ROA)
Humana Inc., ROA calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income attributable to Humana | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
ROA = 100
× (Net income attributable to HumanaQ3 2024
+ Net income attributable to HumanaQ2 2024
+ Net income attributable to HumanaQ1 2024
+ Net income attributable to HumanaQ4 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Humana
- The net income shows significant fluctuations over the quarters. Initial values in 2019 ranged from 512 to 940 million USD, with a notable increase in mid-2020 reaching as high as 1828 million USD. However, there was a sharp decline to a negative net income of -274 million USD at the end of 2020. In 2021, net income recovered and peaked at 1531 million USD in the third quarter but then fell again, recording a negative net income in the last quarter. The 2022 figures demonstrated a recovery with an overall upward trend, reaching around 1195 million USD before dipping slightly. The period from 2023 to early 2024 shows more pronounced volatility, with alternating positive and negative quarters, including a low of -541 million USD and a high near 1239 million USD. The most recent data indicates a declining trend with net income contracting to 480 million USD by the third quarter of 2024.
- Total Assets
- Total assets increased steadily from 2019 through 2021, rising from approximately 28 billion USD to over 45 billion USD, indicating asset growth and expansion during this period. Thereafter, assets remained elevated but exhibited volatility, with peaks around 56 billion USD in 2023 followed by declines towards the end of 2023 and into 2024, stabilizing around 50 billion USD by the third quarter of 2024. Despite fluctuations, the overall long-term trend indicates asset base growth over the analyzed period.
- Return on Assets (ROA)
- Return on Assets (ROA) was recorded starting in March 2020 and shows a downward trend through mid-2024. Early ROA values in 2020 were strong, ranging from approximately 7.5% to 10.8%. This measure weakened gradually over the quarters, falling to levels below 6% during 2022 and continuing its decline in 2023 and 2024. By the latest period, ROA dropped to around 2.7%, reflecting decreasing efficiency in generating earnings from the asset base. The decline in ROA aligns with the volatility and reductions observed in net income despite a relatively stable asset base in recent periods.