Humana (HUM) has reported 43.31 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $450 million, or $2.98 a share in the quarter, compared with $314 million, or $2.09 a share for the same period last year.
Revenue during the quarter went up marginally by 2.48 percent to $13,694 million from $13,363 million in the previous year period. Net premium earned for the quarter went up marginally by 2.96 percent or $384 million to $13,371 million.
Total expenses move up marginallyOperating income for the quarter was $949 million, compared with $695 million in the previous year period. For financial year 2016, the company forecasts diluted earnings per share to be $8.68. For financial year 2016, the company forecasts diluted earnings per share to be $9.50 on adjusted basis.
The company has recorded a gain on investments of $26 million in the quarter compared with a gain of $51 million for the previous year period.
“We continue to meet or exceed our initial 2016 earnings expectations across our portfolio of businesses, with the exception of our individual commercial business," said Bruce D. Broussard, Humana’s president and chief executive officer. "We attribute this over-performance to the effectiveness of our clinical programs and management’s top priority of operational execution notwithstanding the elongated regulatory review of the Aetna transaction.”
Operating cash flow improves significantlyHumana has generated cash of $4,709 million from operating activities during the nine month period, up 786.82 percent or $4,178 million, when compared with the last year period. The company has spent $534 million cash to meet investing activities during the nine month period as against cash inflow of $617 million in the last year period
Cash flow from financing activities was $23 million for the nine month period as against cash outgo of $1,486 million in the last year period.
Cash and cash equivalents stood at $6,769 million as on Sep. 30, 2016, up 323.86 percent or $5,172 million from $1,597 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 21.28 percent or $5,170 million to $29,466 million on Sep. 30, 2016. On the other hand, total liabilities were at $18,181 million as on Sep. 30, 2016, up 30.40 percent or $4,238 million from year-ago.
Return on assets stood at 1.69 percent in the quarter, up 0.20 from 1.49 percent in the last year period. At the same time, return on equity was at 3.99 percent in the quarter, up 0.95 from 3.03 percent in the last year period.
Investments move up marginallyInvestments stood at $9,602 million as on Sep. 30, 2016, up 3.23 percent or $300 million from year-ago. Total debt was at $4,275 million as on Sep. 30, 2016, up 3.54 percent or $146 million from year-ago. Shareholders equity stood at $11,285 million as on Sep. 30, 2016, up 9 percent or $932 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.38 percent in the quarter from 0.40 percent in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
