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.