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UnitedHealth Group ROE %

: 23.47% (As of Sep. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. UnitedHealth Group's annualized net income attributable to common stockholders for the quarter that ended in Sep. 2021 was $16,344 Mil. UnitedHealth Group's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was $69,646 Mil. Therefore, UnitedHealth Group's annualized ROE % for the quarter that ended in Sep. 2021 was 23.47%.

The historical rank and industry rank for UnitedHealth Group's ROE % or its related term are showing as below:

NYSE:UNH' s ROE % Range Over the Past 10 Years
Min: 17.4   Med: 19.23   Max: 25.32
Current: 22.93

17.4
25.32

During the past 13 years, UnitedHealth Group's highest ROE % was 25.32%. The lowest was 17.40%. And the median was 19.23%.

NYSE:UNH's ROE % is ranked higher than
83% of the 23 Companies
in the Healthcare Plans industry.

( Industry Median: 8.15 vs. NYSE:UNH: 22.93 )

UnitedHealth Group ROE % Historical Data

The historical data trend for UnitedHealth Group's ROE % 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.

* Premium members only.

UnitedHealth Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.46 24.54 24.10 25.32 25.02

UnitedHealth Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.69 13.54 29.49 25.20 23.47

Competitive Comparison

For the Healthcare Plans subindustry, UnitedHealth Group's ROE %, along with its competitors' market caps and ROE % 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.

   

UnitedHealth Group ROE % Distribution

For the Healthcare Plans industry and Healthcare sector, UnitedHealth Group's ROE % distribution charts can be found below:

* The bar in red indicates where UnitedHealth Group's ROE % falls into.



UnitedHealth Group ROE % Calculation

UnitedHealth Group's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=15403/( (57616+65491)/ 2 )
=15403/61553.5
=25.02 %

UnitedHealth Group's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=16344/( (69014+70278)/ 2 )
=16344/69646
=23.47 %

* 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.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Sep. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


UnitedHealth Group  (NYSE:UNH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=16344/69646
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(16344 / 287336)*(287336 / 211668.5)*(211668.5 / 69646)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.69 %*1.3575*3.0392
=ROA %*Equity Multiplier
=7.72 %*3.0392
=23.47 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=16344/69646
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (16344 / 21160) * (21160 / 20836) * (20836 / 287336) * (287336 / 211668.5) * (211668.5 / 69646)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7724 * 1.0156 * 7.25 % * 1.3575 * 3.0392
=23.47 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Sep. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Sep. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


UnitedHealth Group ROE % Related Terms

Thank you for viewing the detailed overview of UnitedHealth Group's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


UnitedHealth Group Business Description

UnitedHealth Group logo
Industry
Healthcare » Healthcare Plans NAICS : 524114 SIC : 6324
Address
9900 Bren Road East, UnitedHealth Group Center, Minnetonka, MN, USA, 55343
UnitedHealth Group is the largest private health insurance provider in the United States, providing medical benefits to 48 million members across its U.S. and international businesses at the end of 2020. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in managed care. Along with its insurance assets, UnitedHealth's continued investments in its Optum franchises have created a healthcare services colossus that spans everything from medical and pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.
Executives
Renwick Glenn M director 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Flynn Timothy Patrick director JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Wilensky Gail R director C/O QUEST DIAGNOSTICS 500 PLAZA DRIVE SECAUCUS NJ 07094
Hooper Michele J director C/O PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272
Montgomery Rice Valerie Md director C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Hemsley Stephen J director 200 WASHINGTON AVE N SUITE 200 MINNEAPOLIS MN 55401
Burke Richard T director 3962 TOMAHAWK TRAIL MEDINA MN 55340
Mcnabb Frederick William Iii director C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN-008-T502 MINNETONKA MN 55343
Noseworthy John H director 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Rex John F officer: EVP Chief Financial Officer C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Lewis Patricia L officer: EVP and Chief HR Officer C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Mcmahon Dirk C officer: Chief Executive Officer, UHC C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Roos Thomas E officer: Chief Accounting Officer C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Short Marianne D officer: EVP & Chief Legal Officer C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST MINNETONKA MN 55343
Wichmann David S director, officer: Chief Executive Officer UNITEDHEALTH GROUP INC 9900 BREN RD E MINNETONKA MN 55343

UnitedHealth Group Headlines

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