Humana Inc (HUM)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	46,479,000	47,065,000	43,055,000	44,358,000	34,969,000
Total stockholders’ equity	US$ in thousands	16,375,000	16,262,000	15,311,000	16,080,000	13,728,000
Financial leverage ratio		2.84	2.89	2.81	2.76	2.55

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $46,479,000K ÷ $16,375,000K
= 2.84

The financial leverage ratio of Humana Inc has shown a gradual increase over the past five years. Starting at 2.55 in December 31, 2020, the ratio has steadily risen to 2.84 by December 31, 2024. This indicates that the company's reliance on debt has increased over the period, which could potentially expose Humana Inc to higher financial risk. However, it's essential to conduct further analysis to understand the factors influencing this trend and evaluate the overall financial health and stability of the company.