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.
Peer comparison
Dec 31, 2023