Humana Inc (HUM)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,489,000 | 2,806,000 | 2,933,000 | 3,367,000 | 2,707,000 |
| Revenue | US$ in thousands | 106,374,000 | 92,870,000 | 83,064,000 | 77,155,000 | 64,888,000 |
| Net profit margin | 2.34% | 3.02% | 3.53% | 4.36% | 4.17% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $2,489,000K ÷ $106,374,000K
= 2.34%
Net profit margin, a key financial ratio indicating the percentage of each dollar of revenue that translates into net income, exhibited a declining trend for Humana Inc. over the past five years. The margin decreased from 4.17% in 2019 to 2.34% in 2023. This downward trajectory could indicate challenges in controlling costs or generating profits relative to revenue. The net profit margin of 2.34% in 2023 suggests that Humana Inc. retained $0.0234 in net income for every dollar of revenue generated, which may reflect tighter profit margins compared to previous years. Further investigation into the company's cost structures and revenue streams would be beneficial to understand the factors driving this trend and to assess the company's overall financial health and efficiency.
Peer comparison
Dec 31, 2023