The business behind the dividend
| Measure | HUM | Median | Formula |
|---|---|---|---|
| Return on equity | 6.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 9.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.34bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $375.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 46.4% | 15.0% | Operating income ÷ revenue |
| Net margin | 20.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.70x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.29x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 2.00x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.75x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.78x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 6.7% | 7.4% | 15.3% | 18.3% | 18.2% | 24.5% | 22.5% | 16.6% | 24.9% | 5.7% | 16.6% |
| Return on capital employed | 9.0% | 9.1% | 14.4% | 14.4% | 11.0% | 24.5% | 18.0% | 19.1% | 29.2% | 12.0% | 14.4% |
| Operating margin | 46.4% | 57.8% | 99.5% | 79.6% | — | — | — | — | — | — | 79.6% |
| Net margin | 20.4% | 27.2% | 61.7% | 58.8% | 96.0% | — | — | — | — | 63.4% | 58.8% |
| Debt to equity | 0.70x | 0.72x | 0.72x | 0.73x | 0.78x | 0.49x | 0.47x | 0.60x | 0.48x | 0.35x | 0.60x |
| Current ratio | 2.00x | 1.76x | 1.59x | 1.52x | 1.62x | 1.77x | 1.82x | 1.68x | 1.85x | 2.07x | 1.76x |
| Cash conversion | 0.78x | 2.46x | 1.60x | 1.63x | 0.77x | 1.67x | 1.95x | 1.29x | 1.65x | 3.15x | 1.63x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Humana pays out less than 0 of them. The median for that group is 39.3%, against this company’s 114.7%.
Closest on free cash flow
- Iradimed (IRMD) 87.5%
- Baxter International (BAX) 104.8%
- Pfizer (PFE) 107.7%
- 3M (MMM) 111.9%
Same sector and same denominator, so the figures are comparable. All 44 in health care →