Humana (Humana) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Humana's EBIT for the three months ended in Dec. 2023 was $-445 Mil. Humana's Interest Expense for the three months ended in Dec. 2023 was $-146 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Humana's Interest Coverage or its related term are showing as below:

HUM' s Interest Coverage Range Over the Past 10 Years
Min: 7.86 Med: 11.8 Max: 17.61
Current: 7.86

HUM's Interest Coverage is ranked worse than
53.85% of 13 companies
in the Healthcare Plans industry
Industry Median: 7.86 vs HUM: 7.86

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Humana Interest Coverage Historical Data

The historical data trend for Humana's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Humana Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

15.28

17.25

11.29

9.90

7.86

Humana Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.34	15.28	11.52	10.63	-

Competitive Comparison

For the Healthcare Plans subindustry, Humana's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Humana Interest Coverage Distribution

For the Healthcare Plans industry and Healthcare sector, Humana's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Humana's Interest Coverage falls into.

Humana Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Humana's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Humana's Interest Expense was $-493 Mil. Its EBIT was $3,876 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,213 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3876	/	-493
	=	7.86

Humana's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Humana's Interest Expense was $-146 Mil. Its EBIT was $-445 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,213 Mil.

Humana did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Humana (NYSE:HUM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Humana Interest Coverage Related Terms

Thank you for viewing the detailed overview of Humana's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Humana (Humana) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Humana Inc (NYSE:HUM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HUM:Mexico HUM:Germany HUM:Germany H1UM34:Brazil

Address

500 West Main Street, Louisville, KY, USA, 40202

Website

http://www.humana.com

Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

Executives

Susan M Diamond	officer: Segment President, Home Bus.	500 W MAIN ST., LOUISVILLE KY 40202
Sanjay K Shetty	officer: President, CenterWell	500 W. MAIN STREET, LOUISVILLE KY 40202
George Ii Renaudin	officer: President, Medicare & Medicaid	500 W. MAIN SREET, LOUISVILLE KY 40202
Jones David A Jr/ky	director	C/O HUMANA INC, 500 WEST MAIN STREET, LOUISVILLE KY 40202
Timothy S. Huval	officer: Sr. Vice Pres & Chief HR Offic	500 W. MAIN STREET, LOUISVILLE KY 40202
Bruce D Broussard	officer: President	500 W. MAIN STREET, C/O HUMANA LAW DEPT., LOUISVILLE KY 40202
Joseph C Ventura	officer: Chief Legal Officer & Corp Sec	500 W MAIN STREET, LOUISVILLE KY 40202
William Kevin Fleming	officer: President, Hlthcare Svc Sgmt	500 WEST MAIN STREET, LOUISVILLE KY 40202
Timothy Alan Wheatley	officer: President, Retail Segment	500 WEST MAIN STREET, LOUISVILLE KY 40202
Samir Deshpande	officer: Chief Risk Officer	500 W MAIN STREET, LOUISVILLE KY 40202
Brad D Smith	director	1040 13TH AVE, HUNTINGTON WV 25701
John-paul W. Felter	officer: SVP, Chief Accting Off & Cont.	500 W MAIN ST, LOUISVILLE KY 40202
Michael A. Koeberlein	officer: SVP, Chief Accting Off & Cont.	500 W MAIN ST., LOUISVILLE KY 40202
David T Feinberg	director	1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Agwunobi, M.d. Andrew C.	officer: Seg. President, Home Solutions	HUMANA INC., 500 W MAIN STREET, LOUISVILLE KY 40202