Humana Inc (HUM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,489,000	2,806,000	2,933,000	3,367,000	2,707,000
Total stockholders’ equity	US$ in thousands	16,262,000	15,311,000	16,080,000	13,728,000	12,037,000
ROE		15.31%	18.33%	18.24%	24.53%	22.49%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,489,000K ÷ $16,262,000K
= 15.31%

Humana Inc.'s Return on Equity (ROE) has shown a declining trend over the past five years. From 2019 to 2020, there was a significant increase in ROE from 22.49% to 24.53%, indicating improved profitability and efficiency in generating returns for shareholders. However, this positive trend was reversed in the subsequent years, with ROE decreasing to 18.24% in 2021, 18.33% in 2022, and finally to 15.31% in 2023.

The decline in ROE could indicate challenges in maintaining profitability and optimizing the company's capital structure. It might be a result of increased competition, rising costs, or inefficiencies within the business operations. Investors and analysts may need to investigate the underlying factors driving this downward trend in ROE to assess the company's long-term financial health and sustainability.

Overall, Humana Inc.'s ROE performance reflects a mixed picture of both strengths and challenges, highlighting the importance of continuous monitoring and analysis to understand the company's financial performance and prospects.