Humana Inc (HUM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 16,375,000 | 16,262,000 | 15,311,000 | 16,080,000 | 13,728,000 |
| ROE | 7.37% | 15.31% | 18.33% | 18.24% | 24.53% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,207,000K ÷ $16,375,000K
= 7.37%
Humana Inc's return on equity (ROE) has shown a declining trend over the past five years. Starting at 24.53% on December 31, 2020, the ROE decreased to 18.24% by December 31, 2021. This downward trajectory continued with ROE figures of 18.33% on December 31, 2022, and 15.31% on December 31, 2023. Notably, there was a significant drop to 7.37% by December 31, 2024.
The declining ROE indicates that the company's ability to generate profit from its shareholders' equity has weakened over the years. This trend may raise concerns among investors and stakeholders about the company's financial performance and efficiency in utilizing its equity to generate returns. It suggests that Humana Inc may be facing challenges in generating sufficient earnings relative to its shareholders' investments, which could impact its overall financial health and long-term sustainability.
Peer comparison
Dec 31, 2024