Humana Inc (HUM)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	52.27	56.11	69.09	30.78	55.48	56.86	26.53	27.21	45.79	43.15	33.00	35.92	67.80	65.54	31.53	33.71	61.45	74.01	67.17	30.05
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	9.57	9.81	9.42	9.03	10.31	10.56	9.53	9.28	8.69	7.52	7.49	7.71	7.53	6.13	6.18	6.97	7.24	6.81	7.04	7.58

Based on the activity ratios for Humana Inc., we can observe the following:

1. Receivables Turnover: The company's receivables turnover ratio has shown fluctuations over the quarters, ranging from 30.78 to 69.09. This indicates the number of times Humana is able to collect its accounts receivable during a specific period. A higher turnover implies a more efficient collection process. It is noteworthy that there has been a general trend of improvement in this ratio over the quarters.

2. Working Capital Turnover: The working capital turnover ratio for Humana has been relatively stable, ranging from 9.03 to 10.56. This ratio measures the efficiency of using working capital to generate sales. A higher turnover indicates that the company is efficiently using its working capital to support its operations. Humana's consistent performance in this ratio suggests effective management of its working capital.

Overall, the analysis of Humana Inc.'s activity ratios indicates that the company has been fairly efficient in managing its receivables and working capital, which are crucial aspects of its operational activities. These ratios provide insights into the company's ability to collect receivables promptly and utilize its working capital effectively to support its business operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	6.98	6.50	5.28	11.86	6.58	6.42	13.76	13.41	7.97	8.46	11.06	10.16	5.38	5.57	11.58	10.83	5.94	4.93	5.43	12.15
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect on its accounts receivable. In the most recent quarter, Q4 2023, Humana Inc. had a DSO of 6.98 days, which indicates that on average, it takes the company approximately 7 days to collect its sales revenue. This is a slight increase from the previous quarter, indicating a potential slowdown in collections efficiency.

Days of Inventory on Hand (DOH) measures how long a company's inventory is held before it is sold. Unfortunately, the data for Humana Inc. over the provided quarters is not available in the table.

Number of Days of Payables measures how many days, on average, a company takes to pay its suppliers. The data for Humana Inc. is missing for all the quarters provided.

Overall, the analysis of Humana Inc.'s activity ratios based on the available data suggests that the company has been efficient in collecting its sales revenue, with a relatively low DSO when compared to industry standards. However, further information on inventory and payables turnover would provide a more comprehensive view of the company's overall efficiency in managing its working capital.

Long-term

	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
Fixed asset turnover	35.11	30.63	29.84	29.57	28.83	28.43	28.64	27.08	27.03	27.98	29.91	31.47	32.54	33.39	33.31	33.47	33.19	33.67	33.81	33.49
Total asset turnover	2.26	1.83	1.75	1.75	2.16	1.80	1.91	1.87	1.87	1.79	2.11	2.11	2.21	1.93	1.83	1.96	2.23	2.15	2.10	2.07

The fixed asset turnover ratio for Humana Inc. has shown a general increasing trend over the past eight quarters, indicating that the company is generating more revenue for each dollar invested in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been somewhat volatile, with fluctuations across the quarters. However, the ratio has generally been above 1, indicating that the company is generating a reasonable level of sales in relation to its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Humana Inc. is effectively utilizing its assets to generate revenue, with the fixed asset turnover ratio showing a more consistent improvement over time.