Humana Inc (HUM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.17 | 0.17 | 0.18 | 0.21 | 0.15 | 0.24 | 0.24 | 0.24 | 0.25 | 0.16 | 0.16 | 0.17 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.15 | 0.15 |
| Debt-to-capital ratio | 0.39 | 0.36 | 0.37 | 0.37 | 0.37 | 0.32 | 0.42 | 0.42 | 0.40 | 0.41 | 0.29 | 0.30 | 0.31 | 0.28 | 0.30 | 0.33 | 0.29 | 0.32 | 0.27 | 0.29 |
| Debt-to-equity ratio | 0.63 | 0.56 | 0.58 | 0.59 | 0.59 | 0.48 | 0.73 | 0.74 | 0.66 | 0.70 | 0.41 | 0.43 | 0.44 | 0.38 | 0.42 | 0.49 | 0.41 | 0.46 | 0.37 | 0.40 |
| 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 |
The solvency ratios of Humana Inc. provide insight into the company's ability to meet its long-term financial obligations. Looking at the trend over the last eight quarters, we observe the following:
1. Debt-to-assets ratio has ranged between 0.21 to 0.27, indicating that on average, approximately 21% to 27% of the company's assets are financed by debt.
2. Debt-to-capital ratio has stayed relatively stable around 0.41 to 0.43, suggesting that debt represents around 41% to 43% of the company's total capital structure.
3. Debt-to-equity ratio has fluctuated between 0.67 to 0.87, showing that debt has comprised approximately 67% to 87% of the company's equity over the periods.
4. Financial leverage ratio has been somewhat volatile, ranging from 2.81 to 3.35. This ratio indicates that for every $1 of equity, the company carries between $2.81 to $3.35 of debt.
Overall, the trends in these solvency ratios suggest that Humana Inc. has managed its debt levels relatively well, with some fluctuations observed over the quarters. However, it is essential to keep monitoring these ratios to ensure the company maintains a healthy balance between debt and its financial resources for long-term sustainability and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.74 | 9.50 | 10.21 | 10.32 | 9.90 | 10.31 | 11.61 | 11.27 | 11.48 | 10.87 | 11.78 | 18.22 | 17.52 | 22.25 | 19.81 | 15.36 | 15.34 | 14.65 | 15.26 | 10.32 |
Humana Inc.'s interest coverage ratio has remained relatively stable and healthy over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a greater ability to cover interest expenses.
Humana's interest coverage ratio ranged from 8.01 to 9.98 over the period, with an average of approximately 9.28. This suggests that the company has consistently generated sufficient operating income to cover its interest expenses comfortably.
The trend shows a slight fluctuation in the ratio but generally staying above 8, which is considered a good benchmark for most industries. It peaked at 9.98 in Q2 2023, indicating a particularly strong ability to cover interest expenses during that period.
Overall, Humana's interest coverage ratio indicates that the company has a solid financial position and is effectively managing its interest obligations. Investors and creditors may view this positively as it suggests a lower risk of financial distress due to an inability to meet interest payment obligations.