UNH

Key Performance Metrics

  • The review of the Net Profit Margin showed a fluctuating trend. It decreased from 5.99% in 2020 to 3.6% in 2024.
  • The average EBIT Margin during this period was 8.5%.
  • In the current year, UNITED HEALTH was able to cover its interest liabilities 8.3 times, compared to 13.47 times in 2020.
  • The Asset Turnover increased to 1.34 times in 2024, up from 1.30 in 2020, indicating a consistent performance in utilizing assets relative to revenue.

 

Profitability

  • The revenue of United Health has shown consistent year-on-year growth. It increased by 9% from 2020 to 2021, followed by a further rise of 12.71% from 2021 to 2022. Additionally, there was a 7.7% increase recorded between 2023 and 2024, which is the current period.
  • United Health’s profitability performance is also strong, as evidenced by a notable return on capital employed throughout the analysis period.

 

Liquidity

  • The company’s liquidity results appear poor, with the current ratio rising from 0.79:1 to 0.83:1 over the last year. This indicates that the company lacks sufficient assets to cover its current liabilities.

 

Capital Structure

  • UNITED HEALTH is financed through both equity and debt. The debt-to-equity (D/E) ratio has been declining year on year. The company’s gearing position appears high, standing at 204% this year.

 

Source: UNITED HEALTH Annual Report

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