UnitedHealth Group Incorporated (UNH)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.22 | 3.00 | 3.37 | 3.28 | 3.14 | 3.34 | 3.40 | 3.49 | 3.16 | 3.26 | 3.16 | 3.04 | 2.96 | 3.03 | 3.05 | 3.09 | 3.01 | 2.93 | 3.03 | 3.32 |
The solvency ratios of UnitedHealth Group Incorporated, based on the provided data, indicate a consistently low level of indebtedness and strong financial stability over the reported periods.
- Debt-to-assets ratio: The ratio remains at 0.00 throughout all the periods, implying that the company has no debt in relation to its total assets. This reflects a strong ability to cover obligations with its existing assets.
- Debt-to-capital ratio: Similarly, the ratio remains at 0.00 consistently across all periods, indicating that the company is not reliant on debt financing to fund its operations or investments.
- Debt-to-equity ratio: The 0.00 ratio throughout all the periods signals that the company's capital structure is not leveraged with debt, posing minimal financial risk and demonstrating a healthy financial position.
- Financial leverage ratio: The ratio ranges from 2.93 to 3.49 during the reported periods, depicting a modest level of financial leverage. This suggests that the company has a conservative approach to leveraging its capital, balancing debt and equity to maintain financial stability.
Overall, UnitedHealth Group Incorporated's solvency ratios indicate a prudent financial management strategy, with minimal reliance on debt and a strong capacity to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.05 | 6.08 | 6.16 | 6.88 | 9.30 | 9.88 | 10.99 | 12.25 | 13.59 | 14.66 | 14.45 | 14.26 | 14.44 | 13.46 | 13.03 | 14.88 | 13.47 | 14.12 | 13.89 | 11.40 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt with its operating income. In the case of UnitedHealth Group Incorporated, over the last few years, the interest coverage ratio has shown a generally favorable trend.
The interest coverage ratio for UnitedHealth Group Incorporated improved from 11.40 as of March 31, 2020, to a high of 14.88 as of March 31, 2021, indicating the company had more than sufficient operating income to cover its interest expenses during that period.
Although there were slight fluctuations in the interest coverage ratio in the subsequent quarters, it stayed relatively healthy, ranging between 13.03 and 14.66 up to September 30, 2022. However, towards the end of 2023 and into 2024, the interest coverage ratio declined, dropping to 5.05 as of December 31, 2024.
This downward trend in the interest coverage ratio from the end of 2023 onwards may raise concerns about UnitedHealth Group Incorporated's ability to comfortably meet its interest payments with its operating income. It is important for the company to closely monitor and manage its financial obligations to ensure its ability to service its debt in the future.
See also:
UnitedHealth Group Incorporated Solvency Ratios (Quarterly Data)