Humana Inc (HUM)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,325,000 | 3,568,000 | 3,418,000 | 4,674,000 | 3,470,000 |
| Revenue | US$ in thousands | 106,374,000 | 92,870,000 | 83,064,000 | 77,155,000 | 64,888,000 |
| Pretax margin | 3.13% | 3.84% | 4.11% | 6.06% | 5.35% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,325,000K ÷ $106,374,000K
= 3.13%
The pretax margin of Humana Inc. has shown a decreasing trend over the past five years. In 2023, the pretax margin was 3.12%, down from 3.84% in 2022 and 4.12% in 2021. This decline indicates that the company's profitability before accounting for taxes has been weakening. Comparing to 2020 and 2019 where the pretax margins were 6.06% and 5.35% respectively, the current pretax margin is significantly lower, suggesting potential challenges in managing costs or generating revenue efficiently. Further analysis of the company's cost structure and revenue streams may be necessary to understand the factors contributing to this decline in pretax margin.
Peer comparison
Dec 31, 2023