UnitedHealth Group Incorporated (UNH)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	34.78	24.25	26.45	—	—
Receivables turnover	9.54	10.65	10.24	10.12	11.28
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	—	—

The table provided shows the activity ratios of Unitedhealth Group Inc over the past five years.

1. Receivables Turnover:
- Receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period.
- Unitedhealth Group Inc's receivables turnover has shown a declining trend over the past five years, from 11.28 in 2019 to 9.54 in 2023.
- A decreasing receivables turnover ratio may indicate a prolonged collection period for receivables, potentially affecting the company's cash flow and liquidity.
- The company may need to assess its credit and collection policies to improve the efficiency of its receivables turnover.

2. Inventory Turnover:
- The data provided does not include the inventory turnover ratio, which typically measures the number of times a company sells and replaces its inventory during a period.
- Without this ratio, it is challenging to assess how efficiently Unitedhealth Group Inc manages its inventory levels.

3. Payables Turnover:
- Payables turnover ratio evaluates how quickly a company pays its suppliers or creditors.
- The table does not provide the payables turnover ratio for Unitedhealth Group Inc, making it difficult to evaluate the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- Working capital turnover ratio measures a company's efficiency in utilizing its working capital to generate revenue.
- The data does not include the working capital turnover ratio for Unitedhealth Group Inc, limiting the insight into how effectively the company utilizes its working capital resources to drive sales.

In summary, while we have information on the receivables turnover ratio for Unitedhealth Group Inc, the absence of inventory turnover, payables turnover, and working capital turnover ratios prevents a comprehensive analysis of the company's overall activity efficiency. It is essential for the company to monitor and manage these ratios to optimize its working capital management and operational performance.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	10.50	15.05	13.80	—	—
Days of sales outstanding (DSO)	days	38.28	34.29	35.64	36.06	32.35
Number of days of payables	days	—	—	—	—	—

Days of inventory on hand (DOH) is not provided in the data, so we cannot analyze this specific activity ratio for Unitedhealth Group Inc.

Days of sales outstanding (DSO) measures the average number of days it takes for a company to collect revenue after a sale is made. The trend for Unitedhealth Group Inc shows an increase in DSO from 32.35 days in 2019 to 38.28 days in 2023. This indicates that the company is taking longer to collect payments from customers over the years, which may suggest potential issues with credit policies or customer payment terms.

Number of days of payables is not provided in the data, so we cannot analyze this specific activity ratio for Unitedhealth Group Inc.

Overall, based on the available data, Unitedhealth Group Inc's days of sales outstanding has been increasing over the years, which could potentially impact its cash flow and liquidity position. Further analysis would be needed to understand the reasons behind this trend and its potential impact on the company's financial performance.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	32.46	32.01	32.07	29.81	27.82
Total asset turnover	1.36	1.32	1.36	1.30	1.39

Unitedhealth Group Inc's fixed asset turnover ratio has remained consistently high over the past five years, with values ranging from 27.82 to 32.46. This indicates that the company generates substantial revenue relative to its investment in fixed assets, suggesting effective utilization of these assets to generate sales.

On the other hand, the total asset turnover ratio has also shown a stable trend, fluctuating between 1.30 and 1.39. This ratio reflects the company's ability to generate sales in relation to its total assets. Overall, Unitedhealth Group Inc's total asset turnover ratio suggests a consistent level of efficiency in utilizing its total assets to generate revenue.

In summary, both the fixed asset turnover and total asset turnover ratios portray a picture of efficiency in the company's management of its assets to drive sales growth over the specified period.