Humana Inc (HUM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,818,000 | 4,323,000 | 4,525,000 | 4,374,000 | 3,969,000 | 3,960,000 | 4,295,000 | 3,921,000 | 3,744,000 | 3,338,000 | 3,464,000 | 5,301,000 | 4,957,000 | 5,986,000 | 5,072,000 | 3,686,000 | 3,712,000 | 3,560,000 | 3,572,000 | 2,343,000 |
| Long-term debt | US$ in thousands | 10,213,000 | 9,483,000 | 9,722,000 | 9,743,000 | 9,034,000 | 7,798,000 | 11,290,000 | 11,285,000 | 10,541,000 | 11,466,000 | 6,063,000 | 6,062,000 | 6,060,000 | 6,059,000 | 6,058,000 | 6,057,000 | 4,967,000 | 5,365,000 | 4,377,000 | 4,376,000 |
| 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 |
| Return on total capital | 14.42% | 16.36% | 17.04% | 16.62% | 16.30% | 16.42% | 16.03% | 14.73% | 14.06% | 12.03% | 16.57% | 26.18% | 25.05% | 27.42% | 24.77% | 20.02% | 21.83% | 20.98% | 21.98% | 15.40% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,818,000K ÷ ($10,213,000K + $16,262,000K)
= 14.42%
Humana Inc.'s return on total capital has shown a generally positive trend over the past eight quarters, indicating the company's ability to generate profits from both debt and equity capital employed in its operations. The return on total capital ranged from 11.15% to 15.35% during this period. The increase in return on total capital from Q4 2022 to Q3 2023 suggests improved efficiency in utilizing capital to generate returns for the company. Overall, Humana Inc.'s return on total capital has been healthy and stable, reflecting effective capital management and operational performance. Further analysis comparing this ratio with industry benchmarks and historical performance can provide additional insights into the company's financial health and competitiveness.
Peer comparison
Dec 31, 2023