Humana Inc (HUM)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 2,489,000 | 3,015,000 | 3,378,000 | 3,115,000 | 2,806,000 | 2,807,000 | 3,143,000 | 3,035,000 | 2,933,000 | 2,673,000 | 2,482,000 | 3,722,000 | 3,367,000 | 4,153,000 | 3,502,000 | 2,614,000 | 2,707,000 | 2,550,000 | 2,505,000 | 1,758,000 |
| Total stockholders’ equity | US$ in thousands | 16,262,000 | 16,949,000 | 16,834,000 | 16,577,000 | 15,311,000 | 16,317,000 | 15,510,000 | 15,342,000 | 16,080,000 | 16,282,000 | 14,843,000 | 14,190,000 | 13,728,000 | 15,768,000 | 14,416,000 | 12,355,000 | 12,037,000 | 11,601,000 | 11,872,000 | 10,841,000 |
| ROE | 15.31% | 17.79% | 20.07% | 18.79% | 18.33% | 17.20% | 20.26% | 19.78% | 18.24% | 16.42% | 16.72% | 26.23% | 24.53% | 26.34% | 24.29% | 21.16% | 22.49% | 21.98% | 21.10% | 16.22% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,489,000K ÷ $16,262,000K
= 15.31%
The return on equity (ROE) of Humana Inc. has shown a relatively stable trend over the past eight quarters. The ROE ranged from a low of 15.31% in Q4 2023 to a high of 20.29% in Q2 2022. Overall, the ROE for the company has been consistently above 15% during this period, indicating that Humana Inc. is effectively generating profit from the shareholders' equity invested in the company.
The variation in ROE can be attributed to factors such as changes in net income, total equity, and financial leverage. The upward trend in ROE from Q1 2022 to Q2 2023 indicates an improvement in the company's profitability and efficiency in utilizing shareholder equity to generate returns.
While the ROE fluctuated slightly quarter by quarter, the company's ability to maintain ROE above 15% demonstrates a healthy financial performance and efficient capital utilization. Shareholders can view this positively as it signifies the company's ability to generate profits from their investments. However, it would be essential for stakeholders to monitor the trend in ROE over time to ensure sustained and consistent performance.
Peer comparison
Dec 31, 2023