Humana Inc (HUM)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.39	0.36	0.37	0.37	0.37	0.32	0.42	0.42	0.40	0.41	0.29	0.30	0.31	0.28	0.30	0.33	0.29	0.32	0.27	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 shown relatively stable trends over the past eight quarters, ranging between 0.40 to 0.46. The ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio typically suggests higher financial risk due to higher reliance on debt financing.

Humana Inc.'s average debt-to-capital ratio over these quarters is approximately 0.43, indicating that, on average, 43% of the company's capital structure is debt-financed. The consistency in the ratio suggests a consistent approach to capital structure management by the company.

It is important to note that a debt-to-capital ratio of 0.42 in Q4 2023 is slightly lower than the previous quarter, which may suggest a slight decrease in the company's reliance on debt financing or an increase in equity financing. This slight change may indicate a strategic shift in the company's capital structure. Additionally, the ratio remaining within a relatively narrow range indicates a stable financial position in terms of debt management for Humana Inc.