UnitedHealth Group Incorporated (UNH)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.21 0.21 0.21 0.21 0.22 0.19 0.20 0.18 0.20 0.20 0.21 0.18 0.20 0.21 0.21 0.19 0.21 0.22 0.21 0.21
Debt-to-capital ratio 0.37 0.38 0.39 0.40 0.39 0.35 0.36 0.34 0.36 0.37 0.38 0.35 0.35 0.36 0.37 0.37 0.37 0.39 0.37 0.38
Debt-to-equity ratio 0.59 0.62 0.64 0.67 0.63 0.55 0.56 0.53 0.55 0.58 0.60 0.53 0.55 0.57 0.58 0.58 0.59 0.64 0.59 0.61
Financial leverage ratio 2.77 3.00 3.04 3.13 2.85 2.93 2.84 2.85 2.77 2.85 2.87 2.91 2.80 2.73 2.82 3.07 2.80 2.91 2.88 2.85

Unitedhealth Group Inc's solvency ratios indicate the extent to which the company relies on debt to finance its operations and the level of financial risk it carries.

The debt-to-assets ratio has remained relatively stable around 0.23 to 0.25 over the past year, suggesting that roughly 23-25% of the company's total assets are funded by debt. This indicates a moderate level of leverage and indicates that a significant portion of the company's assets are financed by equity.

The debt-to-capital ratio has also shown consistency, hovering between 0.41 and 0.46, implying that around 41-46% of the company's total capital is derived from debt. This ratio provides insights into the company's long-term financial health and ability to cover its debt obligations.

The debt-to-equity ratio has fluctuated more significantly, varying between 0.65 and 0.87 in recent quarters. This indicates that the company's reliance on debt relative to equity has changed, with the ratio reaching its highest point in Q1 2023. A higher debt-to-equity ratio suggests higher financial risk, as the company has a greater reliance on debt financing.

Finally, the financial leverage ratio has also experienced fluctuations, ranging from 3.04 to 3.49. This ratio measures the company's total assets relative to shareholders' equity and provides insights into the company's ability to meet its financial obligations.

Overall, Unitedhealth Group Inc's solvency ratios demonstrate a moderate level of leverage and a consistent reliance on debt financing. Changes in these ratios should be monitored to assess the company's evolving financial risk profile and debt management strategies.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 9.73 9.98 10.77 12.02 13.34 14.40 14.18 13.99 14.17 13.18 12.75 14.63 13.25 13.91 13.68 11.18 11.32 11.39 11.82 12.05

Unitedhealth Group Inc's interest coverage has shown a declining trend over the past quarters, with the ratio decreasing from 14.66 in Q3 2022 to 9.97 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has decreased. Lower interest coverage may suggest a higher risk of default on its debt obligations. However, it is important to note that the interest coverage ratios are still above 1, indicating that the company is generating sufficient earnings to cover its interest expenses. Overall, Unitedhealth Group Inc should closely monitor its interest coverage ratio to ensure it remains at a healthy level and to manage its debt effectively.

See also:

UnitedHealth Group Incorporated Solvency Ratios (Quarterly Data)