Humana Inc (HUM)
Working capital 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 current assets | US$ in thousands | 29,986,000 | 38,253,000 | 38,759,000 | 37,532,000 | 26,183,000 | 33,711,000 | 27,217,000 | 26,840,000 | 24,893,000 | 25,815,000 | 25,790,000 | 25,526,000 | 23,641,000 | 27,031,000 | 27,868,000 | 24,551,000 | 19,888,000 | 20,324,000 | 20,160,000 | 19,673,000 |
| Total current liabilities | US$ in thousands | 18,872,000 | 27,823,000 | 28,279,000 | 26,942,000 | 17,178,000 | 25,051,000 | 17,839,000 | 17,532,000 | 15,331,000 | 15,027,000 | 15,051,000 | 15,300,000 | 13,394,000 | 14,905,000 | 16,455,000 | 14,830,000 | 10,929,000 | 11,106,000 | 11,539,000 | 11,927,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $106,374,000K ÷ ($29,986,000K – $18,872,000K)
= 9.57
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
In the case of Humana Inc., the working capital turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from a low of 9.03 in Q1 2023 to a high of 10.56 in Q3 2022. This indicates some variability in the company's ability to convert its working capital into sales revenue.
The average working capital turnover for Humana Inc. over the eight quarters is approximately 9.67. This suggests that, on average, the company generates sales revenue 9.67 times for every dollar of working capital it invests.
Overall, Humana Inc. has maintained a relatively high working capital turnover ratio, which generally signifies effective management of its working capital to support the generation of sales revenue. However, the fluctuation in the ratio over time may indicate changes in the company's operating efficiency or sales dynamics that warrant further investigation.
Peer comparison
Dec 31, 2023