Humana Inc (HUM)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,627,000 | 3,320,000 | 3,564,000 | 3,419,000 | 4,674,000 |
| Revenue | US$ in thousands | 117,761,000 | 106,374,000 | 92,870,000 | 83,064,000 | 77,155,000 |
| Pretax margin | 1.38% | 3.12% | 3.84% | 4.12% | 6.06% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,627,000K ÷ $117,761,000K
= 1.38%
The pretax margin of Humana Inc has exhibited a downward trend over the five-year period from December 31, 2020 to December 31, 2024. Starting at 6.06% in 2020, the pretax margin decreased to 4.12% in 2021, further dropping to 3.84% in 2022, 3.12% in 2023, and ultimately reaching 1.38% by the end of 2024. This decline suggests that the company's profitability before taxes has weakened over time, which could be attributed to various factors such as increasing operating expenses, declining revenues, or inefficiencies in cost management. It is essential for Humana Inc to closely monitor and address the factors contributing to this decline in pretax margin to sustain and improve its financial performance in the future.
Peer comparison
Dec 31, 2024