Humana Inc (HUM)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 2,562,000 2,757,000 3,235,000 3,530,000 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
Total assets US$ in thousands 46,479,000 50,007,000 50,093,000 50,091,000 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
Operating ROA 5.51% 5.51% 6.46% 7.05% 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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,562,000K ÷ $46,479,000K
= 5.51%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its operating assets. It is calculated by dividing operating income by average total assets.

Analyzing the Operating ROA trend for Humana Inc from March 2020 to December 2024 reveals fluctuations in the company's ability to generate profits from its operating assets. The ratio started at 9.87% in March 2020 and peaked at 14.80% in September 2020, indicating a strong performance during that period.

However, the ratio then experienced a decline, reaching a low point of 5.51% in both September and December 2024. This downward trend suggests potential challenges in efficiently utilizing the company's operating assets to generate profits during these quarters.

Overall, the Operating ROA for Humana Inc shows variability over the analyzed period, with fluctuations indicating changes in the company's operational efficiency and profitability. Monitoring this ratio can provide insights into the company's ability to effectively leverage its assets for generating earnings.