Humana Inc (HUM) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $401 million, or $ 2.68 a share in the quarter, against a net profit of $101 million, or $0.67 a share in the last year period. On an adjusted basis, earnings per share were at $2.09 for the quarter compared with $1.54 in the same period last year.
Revenue during the quarter dropped 3.61 percent to $12,878 million from $13,361 million in the previous year period. Net premium earned for the quarter declined 3.10 percent or $402 million to $12,560 million.
Total expenses move up marginally
Operating loss for the quarter was $438 million, compared with an operating income of $289 million in the previous year period.
“We are proud of our strong 2016 operating results, particularly given the complex operating environment during the extended transaction process,” said Bruce D. Broussard, Humana’s president and chief executive officer. “These results and the current strength of the company are the result of deep clinical engagement with our members, tireless work to simplify the member experience, our partnership with providers and the dedication of our more than 50,000 associates.”
Operating cash flow improves significantly
Humana Inc has generated cash of $1,936 million from operating activities during the year, up 123.04 percent or $1,068 million, when compared with the last year.
The company has spent $1,362 million cash to meet investing activities during the year as against cash inflow of $320 million in the last year.
Cash flow from financing activities was $732 million for the year as against cash outgo of $552 million in the last year period.
Cash and cash equivalents stood at $3,877 million as on Dec. 31, 2016, up 50.80 percent or $1,306 million from $2,571 million on Dec. 31, 2015.
Assets outpace liabilities growth
Total assets increased 2.80 percent or $691 million to $25,396 million on Dec. 31, 2016. On the other hand, total liabilities were at $14,711 million as on Dec. 31, 2016, up 2.45 percent or $352 million from year-ago.
Return on assets was negative at 1.39 percent in the quarter against a positive 0.60 percent in the last year period. Return on equity was negative at 3.75 percent in the quarter against a positive 0.98 percent in the last year period.
Investments move up
Investments stood at $9,798 million as on Dec. 31, 2016, up 7.55 percent or $688 million from year-ago.
Total debt was at $4,304 million as on Dec. 31, 2016, down 2.05 percent or $90 million from year-ago. Shareholders equity stood at $10,685 million as on Dec. 31, 2016, up 3.28 percent or $339 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.40 percent in the quarter from 0.42 percent in the last year period.
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