Humana Inc (HUM)

Financial leverage 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
Total assets	US$ in thousands	47,065,000	55,905,000	56,455,000	54,776,000	43,055,000	50,765,000	46,820,000	46,308,000	44,358,000	45,320,000	38,070,000	37,415,000	34,969,000	38,477,000	38,455,000	34,633,000	29,074,000	29,180,000	28,913,000	28,349,000
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
Financial leverage ratio		2.89	3.30	3.35	3.30	2.81	3.11	3.02	3.02	2.76	2.78	2.56	2.64	2.55	2.44	2.67	2.80	2.42	2.52	2.44	2.61

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $47,065,000K ÷ $16,262,000K
= 2.89

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting higher financial risk.

Humana Inc.'s financial leverage ratio has shown some variability over the past eight quarters, ranging from 2.81 to 3.35. The trend indicates that the company's reliance on debt to support its operations has been increasing overall.

The spike in the financial leverage ratio in Q2 2023 to 3.35 suggests a significant increase in debt compared to equity in that period. This could be due to various reasons such as financing for acquisitions, expansion, or other strategic initiatives.

It is essential for investors and analysts to monitor the financial leverage ratio of Humana Inc. closely as a high ratio may indicate increased financial risk, potential liquidity issues, and higher interest expense, which can impact the company's overall financial health and sustainability in the long run.