What does medical costs mean?

These are the direct costs associated with providing healthcare services, including medical claims, pharmacy benefits, and clinical care delivery. This is the primary variable expense for a health insurer and is central to calculating the medical loss ratio.

Humana HUM Medical costs

Medical costs at other companies

UnitedHealth GroupUNH

$73.49B+0.1%

Segments

By segment

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Insurance$33.7B+26.3%

CenterWell$0—

Other financials

Income statement

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Revenue$39.6B+23.5%

Operating income$1.8B-12.9%

Net income$1.2B-4.7%

EPS (diluted)$9.83-4.6%

Balance sheet

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Cash & equivalents$5.0B+16.5%

Total debt$14.0B+5.2%

Total equity$18.6B+4.7%

Total assets$55.3B+8.5%

Cash flow

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Operating cash flow$1.3B+279%

CapEx$121.0M+27.4%

Free cash flow$1.1B+380%

Valuation

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Market cap$46.08B+59.9%

Enterprise value$55.13B+47.5%

P/E14.5×-1.8×

P/S0.3×+0.1×

Profitability

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Operating margin2.7%-1.7pp

Net margin3%-0.1pp

FCF margin4.2%—

Returns & leverage

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Return on equity18.2%+0.9pp

Debt / equity0.8×0.0×

Current ratio1.8×-0.1×

Questions, answered.

What does medical costs mean?: These are the direct costs associated with providing healthcare services, including medical claims, pharmacy benefits, and clinical care delivery. This is the primary variable expense for a health insurer and is central to calculating the medical loss ratio.