Humana Inc (HUM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 81.84% | 62.56% | 41.38% | 18.50% | 18.52% | 17.79% | 17.18% | 16.69% | 36.15% | 57.18% | 78.08% | 100.00% | 100.00% | 100.00% | 100.00% |
| Operating profit margin | 2.18% | 2.40% | 2.89% | 3.23% | 3.77% | 4.38% | 4.51% | 4.42% | 4.09% | 4.08% | 3.57% | 3.72% | 3.79% | 3.38% | 4.89% | 6.51% | 6.46% | 7.65% | 6.72% | 5.05% |
| Pretax margin | 1.38% | 1.66% | 2.11% | 2.48% | 3.12% | 3.78% | 4.13% | 4.12% | 3.84% | 3.91% | 4.38% | 4.09% | 4.04% | 3.65% | 3.83% | 6.28% | 6.01% | 7.64% | 6.83% | 5.09% |
| Net profit margin | 1.02% | 1.18% | 1.53% | 1.82% | 2.34% | 2.95% | 3.42% | 3.26% | 3.02% | 3.07% | 3.52% | 3.51% | 3.53% | 3.30% | 3.09% | 4.72% | 4.36% | 5.58% | 4.96% | 3.86% |
Based on the data provided, we can observe the following trends in Humana Inc's profitability ratios:
1. Gross Profit Margin: The gross profit margin started at 100% in March 2020 and remained at this level until December 2020. Subsequently, there was a significant decrease in the gross profit margin, reaching a low of 16.69% in December 2021. However, there has been a gradual recovery since then, with the margin increasing to 100% by December 2023 and maintaining that level through December 2024.
2. Operating Profit Margin: The operating profit margin fluctuated over the period under consideration. It peaked at 7.65% in September 2020 and experienced a downward trend until December 2023, where it hit a low of 3.23%. This indicates a decrease in profitability from operational activities. By December 2024, the margin improved slightly to 2.18%.
3. Pretax Margin: The pretax margin followed a similar pattern to the operating profit margin, with fluctuations over time. The margin peaked at 7.64% in September 2020 and declined steadily until December 2024, where it reached 1.38%. This downward trend suggests a decrease in profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin, which indicates the profitability after all expenses, also showed a decline over the period. It started at 3.86% in March 2020, peaked at 5.58% in September 2020, and then decreased to 1.02% by December 2024. This trend highlights a decrease in profitability net of all costs and taxes.
In summary, the profitability ratios of Humana Inc have shown variability and a downward trend in profitability from 2020 to 2024. It's important for the company to carefully manage its costs and revenue generation to improve its profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.60% | 2.72% | 3.42% | 3.97% | 5.29% | 5.39% | 5.98% | 5.68% | 6.51% | 5.53% | 6.72% | 6.55% | 6.61% | 5.90% | 6.52% | 9.95% | 9.63% | 10.79% | 9.11% | 7.55% |
| Return on total capital | 15.65% | 15.70% | 19.40% | 21.88% | 24.68% | 25.94% | 27.29% | 26.43% | 25.92% | 24.36% | 27.73% | 25.60% | 23.28% | 20.74% | 23.57% | 35.82% | 36.63% | 36.38% | 32.87% | 27.67% |
| Return on equity (ROE) | 7.37% | 7.74% | 10.26% | 12.34% | 15.31% | 17.79% | 20.05% | 18.79% | 18.32% | 17.26% | 20.30% | 19.81% | 18.24% | 16.44% | 16.72% | 26.23% | 24.53% | 26.34% | 24.29% | 21.16% |
Humana Inc's profitability ratios show fluctuating trends over the periods in consideration.
1. Operating Return on Assets (Operating ROA): The Operating ROA started at 9.87% in March 2020, increased to a peak of 14.80% in September 2020, but has since declined. The ratio stood at 7.05% in March 2024. This indicates that the company's operating earnings generated from its assets have been variable over time.
2. Return on Assets (ROA): The ROA also follows a similar trend as the Operating ROA, with a gradual decline over the periods. Starting at 7.55% in March 2020, the ROA decreased to 2.60% by December 2024. This indicates that the overall profitability generated from Humana's assets has decreased over time.
3. Return on Total Capital: The Return on Total Capital shows a peak at 36.63% in December 2020 before declining to 15.65% in December 2024. This ratio suggests that the returns generated on the total capital employed by the company have decreased significantly over the periods.
4. Return on Equity (ROE): The ROE also displays a declining trend, starting at 21.16% in March 2020 and dropping to 7.37% by December 2024. This indicates that the returns generated for the company's equity holders have decreased, reflecting potential challenges in generating profits for shareholders.
Overall, the profitability ratios of Humana Inc show a downward trend over the periods analyzed, indicating a potential decline in the company's overall profitability and effectiveness in utilizing its assets and capital to generate returns.