Humana Inc (HUM)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	106,374,000	92,870,000	83,064,000	77,155,000	64,888,000
Total current assets	US$ in thousands	29,986,000	26,183,000	24,893,000	23,641,000	19,888,000
Total current liabilities	US$ in thousands	18,872,000	17,178,000	15,331,000	13,394,000	10,929,000
Working capital turnover		9.57	10.31	8.69	7.53	7.24

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $106,374,000K ÷ ($29,986,000K – $18,872,000K)
= 9.57

Humana Inc.'s working capital turnover has demonstrated a positive trend over the past five years, indicating the company's efficiency in utilizing its working capital to generate revenue. The ratio has increased from 7.24 in 2019 to 9.57 in 2023, showcasing an improving efficiency in managing working capital.

A higher working capital turnover ratio suggests that the company is efficiently utilizing its current assets and liabilities to support its operations and generate sales. This can be interpreted as a positive sign of effective management of working capital, which is crucial for sustaining the company's day-to-day operations.

The consistent increase in the working capital turnover ratio from 2019 to 2023 reflects Humana Inc.'s ability to optimize its working capital management practices over the years. This trend indicates that the company has been successful in maintaining a balance between its current assets and liabilities while maximizing its operational efficiency.

Overall, the upward trajectory of Humana Inc.'s working capital turnover ratio signifies an improvement in the company's overall financial efficiency and management of working capital resources.