Humana Inc (HUM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,562,000 | 4,013,000 | 3,800,000 | 3,148,000 | 4,986,000 |
| Total assets | US$ in thousands | 46,479,000 | 47,065,000 | 43,055,000 | 44,358,000 | 34,969,000 |
| Operating ROA | 5.51% | 8.53% | 8.83% | 7.10% | 14.26% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,562,000K ÷ $46,479,000K
= 5.51%
Operating Return on Assets (Operating ROA) is a financial ratio that measures a company's ability to generate operating profit from its assets. Looking at the data provided for Humana Inc, we can observe a trend in the company's operating ROA over the years:
1. As of December 31, 2020, Humana Inc reported an Operating ROA of 14.26%, indicating that the company generated $0.1426 in operating profit for every dollar of assets it had.
2. By December 31, 2021, the Operating ROA declined to 7.10%, showing a decrease in the company's ability to generate operating profit compared to the previous year.
3. In the following years, Humana Inc's Operating ROA continued to decline, reaching 8.83% by December 31, 2022, and further dropping to 8.53% by December 31, 2023.
4. The trend of declining Operating ROA persisted as of December 31, 2024, with the ratio dropping to 5.51%. This indicates a decrease in the efficiency of Humana Inc in generating operating profit relative to its assets.
Overall, the decreasing trend in Humana Inc's Operating ROA suggests that the company might be facing challenges in effectively utilizing its assets to generate operating profit. Further analysis of the company's operating performance and asset management strategies may be necessary to understand the factors contributing to this decline and to identify areas for improvement.
Peer comparison
Dec 31, 2024