UnitedHealth Group Incorporated (UNH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,670,000 | 28,545,000 | 28,435,000 | 23,970,000 | 22,405,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 92,658,000 | 88,756,000 | 77,772,000 | 71,760,000 | 65,491,000 |
| Return on total capital | 6.12% | 32.16% | 36.56% | 33.40% | 34.21% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,670,000K ÷ ($—K + $92,658,000K)
= 6.12%
UnitedHealth Group Incorporated's return on total capital has shown fluctuations over the years based on the provided data. The return on total capital was 34.21% as of December 31, 2020, which slightly decreased to 33.40% by December 31, 2021. However, it rebounded and increased to 36.56% by December 31, 2022, indicating improved capital efficiency.
Subsequently, there was a decline in return on total capital to 32.16% by December 31, 2023, which may suggest some challenges in capital utilization efficiency during that period. The most significant drop was observed by December 31, 2024, with the return on total capital plummeting to 6.12%. This sharp decline could signal potential issues in capital allocation or operational performance impacting overall profitability.
In conclusion, it is essential for UnitedHealth Group to closely monitor and manage its capital allocation strategies to maintain or improve its return on total capital and ensure sustainable financial performance in the long term.
Peer comparison
Dec 31, 2024