Humana Inc (HUM)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,013,000 | 4,485,000 | 4,451,000 | 4,230,000 | 3,800,000 | 3,737,000 | 3,193,000 | 3,214,000 | 3,148,000 | 2,741,000 | 3,936,000 | 5,135,000 | 4,986,000 | 5,694,000 | 4,739,000 | 3,419,000 | 3,192,000 | 3,347,000 | 3,440,000 | 3,187,000 |
| Total assets | US$ in thousands | 47,065,000 | 55,905,000 | 56,455,000 | 54,776,000 | 43,055,000 | 50,765,000 | 46,820,000 | 46,308,000 | 44,358,000 | 45,320,000 | 38,070,000 | 37,415,000 | 34,969,000 | 38,477,000 | 38,455,000 | 34,633,000 | 29,074,000 | 29,180,000 | 28,913,000 | 28,349,000 |
| Operating ROA | 8.53% | 8.02% | 7.88% | 7.72% | 8.83% | 7.36% | 6.82% | 6.94% | 7.10% | 6.05% | 10.34% | 13.72% | 14.26% | 14.80% | 12.32% | 9.87% | 10.98% | 11.47% | 11.90% | 11.24% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,013,000K ÷ $47,065,000K
= 8.53%
Operating return on assets (Operating ROA) is a key financial ratio used to evaluate a company's profitability and efficiency in generating earnings from its assets. In the case of Humana Inc., the Operating ROA has fluctuated over the past eight quarters, ranging from 6.82% to 8.83%.
The trend analysis of Humana Inc.'s Operating ROA reveals an overall stability with some variability. The ratio has generally shown an upward trend from Q1 2022 to Q4 2022, peaking at 8.83% in the fourth quarter of 2022. However, in the subsequent quarters of 2023, the Operating ROA showed a gradual decline, reaching its lowest point of 7.72% in Q1 2023.
Despite the fluctuations, Humana Inc.'s Operating ROA remains relatively strong, consistently above 7% throughout the period under review. This indicates that the company is effectively utilizing its assets to generate operating profits. However, the recent declining trend in the Operating ROA may warrant further analysis to understand the factors contributing to the decrease and evaluate the company's operational efficiency and profitability in the upcoming periods.
Peer comparison
Dec 31, 2023