Humana Inc (HUM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.63% | 86.01% | 87.74% | 86.88% | 91.16% |
| Operating profit margin | 3.77% | 4.09% | 3.79% | 6.46% | 4.92% |
| Pretax margin | 3.13% | 3.84% | 4.11% | 6.06% | 5.35% |
| Net profit margin | 2.34% | 3.02% | 3.53% | 4.36% | 4.17% |
Humana Inc.'s profitability ratios have shown a declining trend in recent years. The gross profit margin has remained stable at 100% over the past five years, indicating efficient cost management in generating revenue. However, the operating profit margin has decreased from 4.92% in 2019 to 3.77% in 2023, reflecting a decrease in operating efficiency.
Similarly, the pretax margin has also declined from 5.35% in 2019 to 3.12% in 2023, indicating a decrease in profitability before accounting for taxes. The net profit margin, which represents the bottom line profitability after all expenses, has also decreased from 4.17% in 2019 to 2.34% in 2023, reflecting a decrease in overall profitability.
Overall, the declining trend in profitability ratios for Humana Inc. raises concerns about its ability to generate and retain earnings effectively. This trend may indicate potential challenges in cost management, revenue generation, or operational efficiency that the company may need to address to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.53% | 8.83% | 7.10% | 14.26% | 10.98% |
| Return on assets (ROA) | 5.29% | 6.52% | 6.61% | 9.63% | 9.31% |
| Return on total capital | 14.42% | 16.30% | 14.06% | 25.05% | 21.83% |
| Return on equity (ROE) | 15.31% | 18.33% | 18.24% | 24.53% | 22.49% |
Humana Inc.'s profitability ratios indicate varying levels of performance over the past five years.
- Operating return on assets (Operating ROA): The Operating ROA fluctuated between 7.10% and 14.26% during this period, with a slight decrease from 2022 to 2023. This ratio measures the company's ability to generate operating income from its total assets.
- Return on assets (ROA): The ROA ranged from 5.29% to 9.63%, showing a general downward trend from 2019 to 2023. This ratio reflects the company's overall efficiency in generating profits from its assets.
- Return on total capital: The Return on total capital varied between 11.12% and 24.44%, with a significant drop from 2020 to 2021 and then a rebound in 2023. This ratio evaluates the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE): The ROE ranged from 15.31% to 24.53%, displaying a similar trend to the Return on total capital. It reflects the company's profitability in relation to shareholders' equity.
Overall, Humana Inc.'s profitability ratios suggest that the company has maintained solid returns over the years, although there have been fluctuations in performance. Further analysis of the company's financial statements and other metrics would provide a more comprehensive understanding of its profitability and financial health.