UnitedHealth Group Incorporated (UNH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.22 | 3.08 | 3.16 | 2.96 | 3.01 |
Based on the provided data, UnitedHealth Group Incorporated's solvency ratios indicate a strong financial position with low leverage and debt levels.
1. Debt-to-assets ratio: The Debt-to-assets ratio for UnitedHealth Group has consistently been 0.00 for all reported years. This implies that the company has no debt in relation to its total assets, suggesting strong financial stability and the ability to cover obligations without relying on external borrowing.
2. Debt-to-capital ratio: Similarly, the Debt-to-capital ratio has also been 0.00 across all the years. This signifies that the company does not rely on debt to finance its operations in relation to its overall capital structure, which is a positive indicator of financial health.
3. Debt-to-equity ratio: The Debt-to-equity ratio has also been reported as 0.00 for all the years, indicating that the company's equity is sufficient to cover any outstanding debt obligations without resorting to additional borrowing. This implies a low risk of default and a strong financial position.
4. Financial leverage ratio: The Financial leverage ratio has ranged from 2.96 to 3.22 over the reported years, with the highest value recorded in 2024. This ratio indicates the proportion of the company's assets that are financed by debt, with a higher value suggesting higher financial leverage. Despite the slight variations, the ratios are within a reasonable range and do not raise concerns about the company's ability to meet its financial obligations.
In conclusion, based on the solvency ratios provided, UnitedHealth Group Incorporated demonstrates a stable and strong financial position with minimal debt levels and prudent capital structure management, indicating a low risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.45 | 8.79 | 13.59 | 14.44 | 13.47 |
Based on the information provided, UnitedHealth Group Incorporated's interest coverage has been consistently healthy over the past few years. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
In 2020, the interest coverage ratio was at 13.47, indicating that UnitedHealth Group was generating 13.47 times more earnings before interest and tax than the interest expenses incurred during that period. This level of coverage suggests that the company had a strong ability to service its debt obligations.
The interest coverage ratio improved in 2021 to 14.44, and remained relatively stable in 2022 at 13.59. These numbers reflect a continued ability of the company to comfortably cover its interest payments with its operating income.
However, there was a notable decline in interest coverage in 2023, with the ratio dropping to 8.79. This decrease may indicate a potential strain on UnitedHealth Group's ability to cover its interest expenses with its operating earnings during that period.
The situation worsened significantly in 2024, with the interest coverage ratio falling sharply to 1.45. This suggests that the company's operating income may have been insufficient to cover its interest obligations, raising concerns about its financial health and ability to service debt.
Overall, while the interest coverage ratios for UnitedHealth Group were generally strong in the earlier years, the significant decline in 2023 and 2024 signals a potential increase in financial risk due to lower earnings relative to interest expenses. Investors and stakeholders may need to monitor this trend closely to assess the company's financial stability and debt servicing capacity in the future.