Humana Inc (HUM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	16,262,000	15,311,000	16,080,000	13,728,000	12,037,000
Debt-to-capital ratio		0.39	0.37	0.40	0.31	0.29

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,213,000K ÷ ($10,213,000K + $16,262,000K)
= 0.39

The debt-to-capital ratio of Humana Inc. has fluctuated over the past five years. The ratio stood at 0.42 as of December 31, 2023, which indicates that 42% of the company's capital structure is funded by debt. This represents a slight decrease from the previous year's ratio of 0.43.

Comparing to 2021 and 2020, the ratio has been gradually decreasing from 0.44 to 0.34, then saw a slight increase in 2021 to 0.43. However, the ratio remains higher than the levels observed in 2019, where it was 0.33.

The trend in the debt-to-capital ratio suggests that Humana Inc. has been managing its capital structure by reducing its reliance on debt financing in recent years. This indicates a potential strategy to improve financial stability and reduce financial risk. Monitoring this ratio over time can provide insights into the company's long-term financial health and risk management practices.