UnitedHealth Group Incorporated (UNH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 31,595,000 | 27,916,000 | 23,523,000 | 22,039,000 | 19,285,000 |
| Long-term debt | US$ in thousands | 58,263,000 | 54,513,000 | 42,383,000 | 38,648,000 | 36,808,000 |
| Total stockholders’ equity | US$ in thousands | 98,919,000 | 86,347,000 | 76,479,000 | 70,539,000 | 62,162,000 |
| Return on total capital | 20.10% | 19.82% | 19.79% | 20.18% | 19.49% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $31,595,000K ÷ ($58,263,000K + $98,919,000K)
= 20.10%
The return on total capital for Unitedhealth Group Inc has shown a consistently strong performance over the past five years. The ratio has ranged from 20.03% in 2019 to 21.39% in 2023, indicating the company's ability to generate earnings relative to the total capital employed in its operations. This steady increase in return on total capital showcases the company's effective utilization of both equity and debt to generate profits for its shareholders. Unitedhealth Group Inc's ability to maintain a return on total capital above 20% over the years demonstrates its operational efficiency and profitability in maximizing returns for its capital providers.
Peer comparison
Dec 31, 2023