UnitedHealth Group Incorporated (UNH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.20 | 0.20 | 0.21 |
| Debt-to-capital ratio | 0.37 | 0.39 | 0.36 | 0.35 | 0.37 |
| Debt-to-equity ratio | 0.59 | 0.63 | 0.55 | 0.55 | 0.59 |
| Financial leverage ratio | 2.77 | 2.85 | 2.77 | 2.80 | 2.80 |
Unitedhealth Group Inc has maintained a relatively stable debt-to-assets ratio over the past five years, ranging between 0.22 to 0.23. This indicates that the company's proportion of assets financed by debt has remained consistent.
The debt-to-capital ratio has fluctuated slightly, with a decreasing trend from 0.43 in 2022 to 0.41 in 2023. This ratio indicates the percentage of the company's capital structure that is financed by debt, and the declining trend suggests a slight improvement in the company's ability to utilize capital from sources other than debt.
The debt-to-equity ratio has also shown some variability, moving between 0.64 to 0.74 over the five-year period. This ratio reflects the extent to which the company relies on debt versus equity for financing, and the fluctuations suggest some changes in the company's capital structure composition.
The financial leverage ratio, which measures the company's total assets in relation to its equity, has shown a relatively stable pattern around 3. This indicates that the company has sustained a consistent level of financial leverage over the years.
Overall, Unitedhealth Group Inc appears to have a moderate level of solvency, as indicated by the relatively stable solvency ratios with minor fluctuations. The company's capital structure is reasonably well-balanced between debt and equity, reflecting a sound financial position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.73 | 13.34 | 14.17 | 13.25 | 11.32 |
The interest coverage ratio of Unitedhealth Group Inc has shown a slight decline over the past five years. The ratio was 11.55 in 2019, which increased to 13.47 in 2020 and further to 14.44 in 2021. However, it has decreased in the most recent years from 13.59 in 2022 to 9.97 in 2023.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income. Although the ratio has decreased in the recent year, it still remains at a relatively healthy level, implying that Unitedhealth Group Inc has sufficient earnings to cover its interest expenses. It is important for investors and creditors to monitor this ratio to ensure the company's ability to manage its debt obligations effectively.