Humana Inc (HUM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.26 | 1.29 | 1.16 | 1.15 | 1.13 | 1.09 | 1.11 | 1.06 | 1.10 | 1.07 | 1.05 | 1.04 | 1.10 | 1.22 | 1.14 | 1.14 | 1.32 | 1.40 | 1.22 | 1.06 |
| Cash ratio | 1.26 | 1.29 | 1.16 | 1.15 | 1.13 | 1.09 | 1.11 | 1.06 | 1.10 | 1.07 | 1.05 | 1.04 | 1.10 | 1.22 | 1.14 | 1.14 | 1.32 | 1.40 | 1.22 | 1.06 |
Humana Inc's liquidity ratios suggest a mixed performance over the analyzed periods.
1. The current ratio, which measures the company's ability to cover short-term liabilities with its short-term assets, shows fluctuations from low levels at times (e.g., 0.23 in June 2021) to healthier levels (e.g., 1.76 in September 2024). However, the ratio seems to have been generally below 1 throughout most of the periods, indicating potential difficulties in meeting short-term obligations without resorting to external financing.
2. The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displays variability. While the ratio generally stays above 1, implying a stronger ability to cover short-term obligations without relying on inventory, it does not exhibit a consistent upward or downward trend over the periods.
3. The cash ratio, representing the most conservative measure of liquidity by considering only the most liquid assets like cash and equivalents, maintains levels comfortably above 1 in all the periods. This suggests that Humana Inc has a sufficient amount of cash to cover its current liabilities without needing to rely on the conversion of other assets.
In summary, while Humana Inc's liquidity ratios have shown some improvements during certain periods, there have also been instances of lower liquidity levels. It is essential for the company to manage its liquidity effectively to ensure it can meet its short-term obligations without undue financial strain.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle for Humana Inc has consistently been 0.00 days for the period from March 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flow and working capital, with minimal delay between paying suppliers and receiving payments from customers. A shorter cash conversion cycle is generally advantageous as it allows the company to convert its investments in inventory and accounts receivable into cash quickly, optimizing liquidity and financial performance. Humana's ability to maintain a consistent and low cash conversion cycle reflects strong cash management practices and efficient operations.