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Humana Interest Coverage

: 12.11 (As of Jun. 2022)
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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 Jun. 2022 was $1,223 Mil. Humana's Interest Expense for the three months ended in Jun. 2022 was $-101 Mil. Humana's interest coverage for the quarter that ended in Jun. 2022 was 12.11. 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: 9.21   Med: 14.4   Max: 19.2
Current: 11.59


HUM's Interest Coverage is ranked better than
66.67% of 12 companies
in the Healthcare Plans industry
Industry Median: 9.80 vs HUM: 11.59

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.

* Premium members only.

Humana Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.61 10.46 15.28 17.25 11.29

Humana Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 10.34 19.59 0.34 14.56 12.11

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Humana's Interest Expense was $-326 Mil. Its EBIT was $3,680 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,541 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*3680/-326
=11.29

Humana's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Humana's Interest Expense was $-101 Mil. Its EBIT was $1,223 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,290 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1223/-101
=12.11

* 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 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 Business Description

Humana logo
Address
500 West Main Street, Louisville, KY, USA, 40202
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. Humana offers employer-based plans primarily for small businesses along with specialty insurance offerings such as dental, vision, and life. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
Executives
Koeberlein Michael A. officer: SVP, Chief Accting Off & Cont. 500 W MAIN ST. LOUISVILLE KY 40202
Agwunobi, M.d. Andrew C. officer: Seg. President, Home Solutions HUMANA INC. 500 W MAIN STREET LOUISVILLE KY 40202
Feinberg David T director 12525 CHADRON AVENUE HAWTHORNE CA 90250
Schick Susan D. officer: Seg Pres. Grp. & Military Bus. 500 W. MAIN ST. LOUISVILLE KY 40202
Mesquita Jorge S. director C/O KRAFT FOODS INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Klevorn Marcy S director ONE AMERICAN ROAD DEARBORN MI 48126
Bono Raquel C. director 500 W MAIN ST. LOUISVILLE KY 40202
Frederick Wayne A.i. director 500 W MAIN ST. LOUISVILLE KY 40202
Garratt John W director 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Katz Karen director
Diamond Susan M officer: Segment President, Home Bus. 500 W MAIN ST. LOUISVILLE KY 40202
Shrank William H officer: Chief Medical Officer 500 WEST MAIN ST LOUISVILLE KY 40202
Ventura Joseph C officer: Chief Legal Officer & Corp Sec 500 W MAIN STREET LOUISVILLE KY 40202
Agrawal Vishal officer: Chief Strategy Officer 500 W MAIN ST LOUISVILLE KY 40202
Cox Heather officer: Chief Digital & Analytics Off. 804 CARNEGIE CENTER PRINCETON NJ 08540

Humana Headlines

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