Humana Inc (HUM)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 106,374,000 | 102,351,000 | 98,727,000 | 95,642,000 | 92,870,000 | 91,485,000 | 89,383,000 | 86,366,000 | 83,064,000 | 81,072,000 | 80,450,000 | 78,888,000 | 77,155,000 | 74,388,000 | 70,554,000 | 67,716,000 | 64,888,000 | 62,761,000 | 60,726,000 | 58,740,000 |
| Total assets | US$ in thousands | 47,065,000 | 55,905,000 | 56,455,000 | 54,776,000 | 43,055,000 | 50,765,000 | 46,820,000 | 46,308,000 | 44,358,000 | 45,320,000 | 38,070,000 | 37,415,000 | 34,969,000 | 38,477,000 | 38,455,000 | 34,633,000 | 29,074,000 | 29,180,000 | 28,913,000 | 28,349,000 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $106,374,000K ÷ $47,065,000K
= 2.26
Total asset turnover is a key financial ratio that indicates the efficiency with which a company utilizes its assets to generate revenue. The ratio is calculated by dividing the company's total revenue by its average total assets.
Looking at the data provided for Humana Inc. over the past eight quarters, we observe fluctuations in the total asset turnover ratio. In Q4 2023, the total asset turnover ratio increased to 2.26, indicating that the company generated $2.26 in revenue for every dollar of assets it had. This represents an improvement in asset utilization efficiency compared to the previous quarter.
In Q3 2023, the total asset turnover ratio was 1.83, showing a decline from the previous quarter. However, this ratio increased steadily from Q2 2023, which had a total asset turnover ratio of 1.75. This suggests that the company's asset utilization efficiency improved over this period.
Comparing the current total asset turnover ratio to the same quarter in the previous year, we see that in Q4 2022, the ratio was 2.16, slightly higher than in Q4 2023. This indicates that Humana Inc. was more efficient in generating revenue from its assets in the same quarter a year ago.
Overall, an increasing total asset turnover ratio over time indicates that the company is becoming more efficient in utilizing its assets to generate revenue. Conversely, a decreasing ratio may suggest inefficiencies in asset management. It is important for Humana Inc. to monitor this ratio closely to ensure optimal asset utilization and sustainable growth.
Peer comparison
Dec 31, 2023