Humana Inc (HUM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,213,000 | 9,034,000 | 10,541,000 | 6,060,000 | 4,967,000 |
| Total assets | US$ in thousands | 47,065,000 | 43,055,000 | 44,358,000 | 34,969,000 | 29,074,000 |
| Debt-to-assets ratio | 0.22 | 0.21 | 0.24 | 0.17 | 0.17 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $10,213,000K ÷ $47,065,000K
= 0.22
The debt-to-assets ratio of Humana Inc. has shown a decreasing trend over the past five years, declining from 0.26 in 2019 to 0.20 in both 2020 and 2021, before slightly increasing to 0.27 in 2022 and then decreasing again to 0.26 by the end of 2023.
A lower debt-to-assets ratio indicates that the company relies less on debt financing relative to its total assets, which could imply a lower financial risk and greater financial stability. Humana Inc.'s decreasing debt-to-assets ratio could suggest that the company has been managing its debt levels effectively during this period.
However, it is important to note that the debt-to-assets ratio is only one aspect of a company's financial health, and it should be analyzed in conjunction with other financial ratios and qualitative factors to provide a comprehensive assessment of Humana Inc.'s overall financial position and performance.
Peer comparison
Dec 31, 2023