Analysis of Short-term (Operating) Activity Ratios
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
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | UnitedHealth Group Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | UnitedHealth Group Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | UnitedHealth Group Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
UnitedHealth Group Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues, customers | 367,533) | 322,132) | 285,273) | 255,639) | 240,269) | |
| Accounts receivable, net of allowances | 21,276) | 17,681) | 14,216) | 12,870) | 11,822) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 17.27 | 18.22 | 20.07 | 19.86 | 20.32 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.11 | 7.02 | 6.64 | 5.40 | 5.88 | |
| Cigna Group | 17.06 | 18.64 | 19.35 | 19.47 | 20.05 | |
| CVS Health Corp. | 10.12 | 11.79 | 11.91 | 12.32 | 13.04 | |
| Elevance Health Inc. | 18.08 | 18.81 | 20.66 | 19.72 | 18.20 | |
| Humana Inc. | 51.75 | 55.25 | 45.69 | 66.78 | 60.97 | |
| Intuitive Surgical Inc. | 6.30 | 6.60 | 7.30 | 6.75 | 6.94 | |
| Medtronic PLC | 5.21 | 5.71 | 5.51 | 6.22 | 4.91 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 13.47 | 14.72 | 14.99 | 15.09 | 14.97 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.04 | 9.74 | 9.53 | 9.60 | 9.90 | |
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).
1 2023 Calculation
Receivables turnover = Revenues, customers ÷ Accounts receivable, net of allowances
= 367,533 ÷ 21,276 = 17.27
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | UnitedHealth Group Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
UnitedHealth Group Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Medical costs | 241,894) | 210,842) | 186,911) | 159,396) | 156,440) | |
| Medical costs payable | 32,395) | 29,056) | 24,483) | 21,872) | 21,690) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 7.47 | 7.26 | 7.63 | 7.29 | 7.21 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.19 | 4.15 | 4.21 | 3.80 | 4.07 | |
| Cigna Group | 6.75 | 7.31 | 7.68 | 7.75 | 9.34 | |
| CVS Health Corp. | 20.36 | 18.07 | 19.14 | 19.72 | 20.13 | |
| Elevance Health Inc. | 7.72 | 7.47 | 7.59 | 7.75 | 9.25 | |
| Humana Inc. | 8.63 | 8.17 | 8.35 | 7.57 | 8.97 | |
| Intuitive Surgical Inc. | 12.69 | 13.78 | 14.45 | 18.35 | 11.08 | |
| Medtronic PLC | 4.03 | 4.46 | 4.98 | 4.72 | 4.69 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.17 | 8.91 | 9.25 | 9.16 | 9.95 | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.85 | 7.53 | 7.68 | 7.52 | 8.05 | |
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).
1 2023 Calculation
Payables turnover = Medical costs ÷ Medical costs payable
= 241,894 ÷ 32,395 = 7.47
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | UnitedHealth Group Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Working Capital Turnover
UnitedHealth Group Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 78,437) | 69,069) | 61,758) | 53,718) | 42,634) | |
| Less: Current liabilities | 99,054) | 89,237) | 78,292) | 72,420) | 61,782) | |
| Working capital | (20,617) | (20,168) | (16,534) | (18,702) | (19,148) | |
| Revenues, customers | 367,533) | 322,132) | 285,273) | 255,639) | 240,269) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.54 | 4.48 | 3.87 | 4.06 | 6.64 | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | 7.83 | 8.37 | 7.23 | 6.39 | 6.11 | |
| Humana Inc. | 9.47 | 10.27 | 8.67 | 7.42 | 7.19 | |
| Intuitive Surgical Inc. | 1.14 | 1.29 | 1.22 | 0.77 | 1.23 | |
| Medtronic PLC | 2.47 | 2.97 | 2.15 | 2.48 | 2.26 | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 86.58 | 72.82 | 40.87 | 44.34 | 59.48 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 22.08 | 20.51 | 14.48 | 14.33 | 9.16 | |
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).
1 2023 Calculation
Working capital turnover = Revenues, customers ÷ Working capital
= 367,533 ÷ -20,617 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
UnitedHealth Group Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 17.27 | 18.22 | 20.07 | 19.86 | 20.32 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 21 | 20 | 18 | 18 | 18 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 60 | 52 | 55 | 68 | 62 | |
| Cigna Group | 21 | 20 | 19 | 19 | 18 | |
| CVS Health Corp. | 36 | 31 | 31 | 30 | 28 | |
| Elevance Health Inc. | 20 | 19 | 18 | 19 | 20 | |
| Humana Inc. | 7 | 7 | 8 | 5 | 6 | |
| Intuitive Surgical Inc. | 58 | 55 | 50 | 54 | 53 | |
| Medtronic PLC | 70 | 64 | 66 | 59 | 74 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 27 | 25 | 24 | 24 | 24 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 40 | 37 | 38 | 38 | 37 | |
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).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 17.27 = 21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | UnitedHealth Group Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
UnitedHealth Group Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 7.47 | 7.26 | 7.63 | 7.29 | 7.21 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 49 | 50 | 48 | 50 | 51 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 87 | 88 | 87 | 96 | 90 | |
| Cigna Group | 54 | 50 | 48 | 47 | 39 | |
| CVS Health Corp. | 18 | 20 | 19 | 19 | 18 | |
| Elevance Health Inc. | 47 | 49 | 48 | 47 | 39 | |
| Humana Inc. | 42 | 45 | 44 | 48 | 41 | |
| Intuitive Surgical Inc. | 29 | 26 | 25 | 20 | 33 | |
| Medtronic PLC | 91 | 82 | 73 | 77 | 78 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 40 | 41 | 39 | 40 | 37 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 47 | 48 | 48 | 49 | 45 | |
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).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.47 = 49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |