Humana Inc (HUM)

Debt-to-equity 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-equity ratio		0.63	0.59	0.66	0.44	0.41

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,213,000K ÷ $16,262,000K
= 0.63

The debt-to-equity ratio of Humana Inc. has exhibited some fluctuations over the past five years. The ratio stood at 0.49 in 2019 and increased to 0.51 in 2020 before experiencing a more significant jump to 0.80 in 2021. However, there was a downward trend in the following years, with the ratio decreasing to 0.75 in 2022 and further to 0.74 in 2023.

A debt-to-equity ratio of 0.74 in 2023 indicates that for every dollar of equity, the company had $0.74 in debt. This implies that Humana Inc. has relied more on debt financing compared to equity financing, although the trend showed some moderation in recent years.

The fluctuations in the debt-to-equity ratio suggest varying levels of financial leverage and risk exposure for the company. It is essential for stakeholders to monitor these changes to assess Humana Inc.'s ability to manage its debt levels effectively and sustain its financial health in the long term.