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UnitedHealth Group Financial Strength

: 7 (As of Jun. 2022)
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UnitedHealth Group has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

UnitedHealth Group's Interest Coverage for the quarter that ended in Jun. 2022 was 14.64. UnitedHealth Group's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.16. As of today, UnitedHealth Group's Altman Z-Score is 4.12.


Competitive Comparison

For the Healthcare Plans subindustry, UnitedHealth Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where UnitedHealth Group's Financial Strength falls into.



UnitedHealth Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

UnitedHealth Group's Interest Expense for the months ended in Jun. 2022 was $-467 Mil. Its Operating Income for the months ended in Jun. 2022 was $6,837 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $45,799 Mil.

UnitedHealth Group's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*6837/-467
=14.64

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

UnitedHealth Group's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5592 + 45799) / 320148
=0.16

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

UnitedHealth Group has a Z-score of 4.12, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.12 is strong.

* 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.


UnitedHealth Group  (NYSE:UNH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

UnitedHealth Group has the Financial Strength Rank of 7.


UnitedHealth Group Financial Strength Related Terms

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


UnitedHealth Group Business Description

UnitedHealth Group logo
Address
9900 Bren Road East, UnitedHealth Group Center, Minnetonka, MN, USA, 55343
UnitedHealth Group is one of the largest private health insurers, providing medical benefits to 50 million members globally, including 5 million outside the U.S. at the end of 2021. 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
Mcsweeney Erin officer: EVP Chief People Officer EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Bondy Rupert M officer: EVP & Chief Legal Officer C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Garcia Paul R director 214 N TRYON STREET CHARLOTTE NC 28202
Thompson Brian R officer: CEO, UnitedHealthcare C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Friedrich Matthew W. officer: EVP & Chief Legal Officer COGNIZANT TECHNOLOGY SOLUTIONS CORP. 500 FRANK W. BURR BLVD TEANECK NJ 07666
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: President & CEO, UHC C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Noseworthy John H director 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Mcnabb Frederick William Iii director C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN-008-T502 MINNETONKA MN 55343
Nelson Steven H officer: EVP & CEO, UnitedHealthcare 21650 OXNARD STREET WOODLAND HILLS CA 91367
Witty Andrew director 79 TW ALEXANDER DRIVE 4501 RESEARCH COMMONS, SUITE 100 RESEARCH TRIANGLE PARK NC 27709
Montgomery Rice Valerie Md director C/O UNITEDHEALTH GROUP 9900 BREN ROAD EAST, MN008-T502 MINNETONKA MN 55343
Flynn Timothy Patrick director JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Rex John F officer: EVP Chief Financial Officer 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

UnitedHealth Group Headlines

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