UNH Financial Report analysis

UnitedHealth Group's financial report indicates a challenging period with significant losses and operational inefficiencies. 1. **Significant Losses**: UnitedHealth Group reported a net loss of $1.22 billion and a diluted EPS of $-1.53 for the quarter ending March 31, 2024. This is a notable decline from the previous year's net income of $23.86 billion and diluted EPS of $25.12. |Ticker|Name|Total Revenue|Net Income|Diluted EPS|Date|code|market_code| |---|---|---|---|---|---|---|---| |UNH.N|UnitedHealth Group|9.9796E10|-1.221E9|-1.53|2024 Q1|UNH|169| 2. **Revenue Growth**: Despite the losses, the company's total revenue grew by 8.56% year-on-year. This indicates that the company is still able to generate revenue growth, albeit with lower profitability. |Ticker|Name|Net Income year-on-year growth rate|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Date|code|market_code| |---|---|---|---|---|---|---|---| |UNH.N|UnitedHealth Group|-121.14651887772774|8.555329540633737|-126.24356775300171|20240331|UNH|169| 3. **Profitability Concerns**: The company's operating profit margin is 7.1%, net profit margin is -1.22%, and gross profit margin is 8.95%. These figures suggest that the company is facing operational inefficiencies and is unable to convert revenue into profit effectively. |Ticker|Name|Operating Profit Margin|Net Profit Margin|Gross Profit Margin|Date|code|market_code| |---|---|---|---|---|---|---|---| |UNH.N|UnitedHealth Group|7.101487033548438|-1.2235|8.9463|20240331|UNH|169| 4. **Debt and Cash Flow**: The company's debt-to-equity ratio is high at 193.25%, and free cash flow is negative at $-1038.59 billion. This indicates that the company is relying heavily on debt financing and is not generating positive cash flow from operations. 5. **Medical Care Ratio and Operations**: The full-year medical care ratio was 83.2%, reflecting increased costs in outpatient care and business mix. The company's operating cost ratio remained consistent at 14.7%, indicating that despite efforts to manage costs, growth in service businesses and investment in growth are offsetting these savings. In conclusion, UnitedHealth Group is currently facing substantial financial challenges, including significant losses, operational inefficiencies, and high levels of debt. While the company has been able to maintain revenue growth, the decline in profitability and negative cash flow pose concerns about its short-term financial health. It is crucial for the company to address these issues to ensure long-term sustainability and return to profitability.