Humana Inc (HUM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 117,761,000 | 106,374,000 | 92,870,000 | 83,064,000 | 77,155,000 |
| Total current assets | US$ in thousands | 29,815,000 | 29,986,000 | 5,061,000 | 3,394,000 | 4,673,000 |
| Total current liabilities | US$ in thousands | 16,939,000 | 18,872,000 | 17,178,000 | 15,331,000 | 13,394,000 |
| Working capital turnover | 9.15 | 9.57 | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $117,761,000K ÷ ($29,815,000K – $16,939,000K)
= 9.15
Based on the provided data on Humana Inc's working capital turnover, we see that the company did not report this ratio for the years 2020 and 2021. However, for the years 2022, 2023, and 2024, the working capital turnover was 9.57, 9.15 respectively.
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A high working capital turnover ratio indicates that the company is effectively managing its working capital in relation to its sales.
In the case of Humana Inc, the trend of the working capital turnover ratio being around 9.0 indicates that the company is efficiently using its working capital to generate revenue in recent years. This suggests that Humana Inc is effectively managing its current assets and liabilities to support its operations and generate sales.
It is important for the company to continue monitoring and managing its working capital effectively to ensure continued operational efficiency and financial stability.
Peer comparison
Dec 31, 2024