Humana Inc (HUM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.59 | 1.52 | 1.62 | 1.77 | 1.82 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $29,986,000K ÷ $18,872,000K
= 1.59
Humana Inc.'s current ratio has shown a declining trend over the past five years, from 1.82 in 2019 to 1.59 in 2023. This indicates a decrease in the company's ability to cover its short-term liabilities with its current assets. The ratio peaked at 1.82 in 2019, reflecting strong liquidity and short-term solvency, but has since decreased. While the current ratio remains above 1, with values ranging from 1.52 to 1.77 over the last four years, it suggests that Humana Inc. still has an adequate level of current assets to cover its short-term obligations. However, the decreasing trend may signal a potential liquidity concern that warrants further investigation and monitoring.
Peer comparison
Dec 31, 2023