Humana Inc (HUM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,207,000 | 2,489,000 | 2,806,000 | 2,933,000 | 3,367,000 |
| Total assets | US$ in thousands | 46,479,000 | 47,065,000 | 43,055,000 | 44,358,000 | 34,969,000 |
| ROA | 2.60% | 5.29% | 6.52% | 6.61% | 9.63% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,207,000K ÷ $46,479,000K
= 2.60%
Humana Inc's return on assets (ROA) has shown a declining trend over the years. As of December 31, 2020, the ROA was 9.63%, indicating that the company generated $9.63 in profit for every $100 of assets. However, by December 31, 2024, the ROA had decreased to 2.60%, signaling a decline in the company's ability to efficiently utilize its assets to generate profits.
This downward trend in ROA could indicate potential inefficiencies in the company's asset management or declining profitability relative to its asset base. It is important for stakeholders to closely monitor this metric to assess the company's overall financial performance and management effectiveness in utilizing its assets to create value for shareholders.
Peer comparison
Dec 31, 2024