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.
Peer comparison
Dec 31, 2023