Humana Inc (HUM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.76 | 1.59 | 0.29 | 0.22 | 0.35 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $29,815,000K ÷ $16,939,000K
= 1.76
Humana Inc's current ratio reflects its ability to meet its short-term obligations with its current assets. The current ratio has shown fluctuations over the years, decreasing from 0.35 in 2020 to 0.22 in 2021, then increasing to 0.29 in 2022. The ratio significantly improved to 1.59 in 2023 and further to 1.76 in 2024.
The low current ratios in 2020 and 2021 may indicate potential liquidity concerns and difficulty in meeting short-term obligations. However, the subsequent increase in the ratio in 2022 suggests a positive trend towards better liquidity management. The substantial improvement in the current ratio in 2023 and 2024 indicates a healthier financial position, with the company being more capable of covering its short-term liabilities with current assets.
Overall, the upward trend in the current ratio over the years suggests that Humana Inc has potentially enhanced its liquidity and financial stability, which can be beneficial for the company's operations and potential growth opportunities.
Peer comparison
Dec 31, 2024