Humana Inc (HUM)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 23,139,000 | 32,926,000 | 5,501,000 | 5,910,000 | 4,694,000 | 15,148,000 | 16,214,000 | 13,735,000 | 5,061,000 | 13,558,000 | 5,153,000 | 4,864,000 | 3,394,000 | 4,304,000 | 3,378,000 | 3,877,000 | 4,673,000 | 7,985,000 | 7,163,000 | 6,054,000 |
| Total current liabilities | US$ in thousands | 16,276,000 | 18,727,000 | 19,790,000 | 19,689,000 | 18,872,000 | 27,823,000 | 28,279,000 | 26,942,000 | 17,178,000 | 25,051,000 | 17,369,000 | 17,244,000 | 15,074,000 | 14,750,000 | 14,728,000 | 14,975,000 | 13,076,000 | 14,820,000 | 16,392,000 | 16,221,000 |
| Current ratio | 1.42 | 1.76 | 0.28 | 0.30 | 0.25 | 0.54 | 0.57 | 0.51 | 0.29 | 0.54 | 0.30 | 0.28 | 0.23 | 0.29 | 0.23 | 0.26 | 0.36 | 0.54 | 0.44 | 0.37 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,139,000K ÷ $16,276,000K
= 1.42
The current ratio of Humana Inc has shown fluctuations over the reporting periods provided. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
From March 2020 to June 2020, the current ratio increased from 0.37 to 0.44, indicating a slight improvement in liquidity. However, there was a decrease to 0.36 by December 2020, which suggests a potential strain on short-term obligations.
The ratio experienced a significant decline to 0.26 by March 2021 and fell further to 0.23 by June 2021 and December 2021. These low ratios raise concerns about the company's ability to cover its current liabilities with its current assets.
There was a slight recovery to 0.28 by March 2022 and 0.30 by June 2022, indicating a temporary improvement. However, the ratio dropped again to 0.29 by December 2022, before showing a substantial increase to 1.76 by September 2024 and 1.42 by December 2024.
The sudden surge in the current ratio by the end of 2024 is unusual and may be due to certain factors such as increased cash reserves or a reduction in short-term liabilities. It would be important to further investigate the reasons behind this spike to assess the overall financial health and liquidity of Humana Inc.
Peer comparison
Dec 31, 2024