Aureus
FRed Flag

Humana Inc.(HUM)

F

Financial data as of Dec 31, 2025Declining · Healthcare

FCF Margin0.3%Free Cash Flow / Revenue
Cash Conversion77.5%Operating CF / Net Income
Free Cash Flow$375.0M
Revenue$129.7B
Net Cash-$8.2BNet debt position
Debt / FCF33.0xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth-171.8%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (33.0x)
→
-1Current ratio below 1.0 (0.00)
→
-1Significant YoY FCF decline (-171.8%)
→
-0.5Highly volatile FCF (consistency: 17.81)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (0.3%)
  • Heavy debt position ($8.2B net debt, 33.0x FCF)
  • High debt-to-FCF ratio (33.0x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Significant YoY FCF decline (-171.8%)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin0.3%
Net Margin0.9%
Operating CF Margin0.7%
CapEx Ratio0.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.2BNet debt position
Debt / FCF33.0xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity0.70Low leverage

Quarterly FCF Trend

-171.8% YoYDeclining (-171.8%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameHumana Inc.
SectorHealthcare
Free Cash Flow$375.0M
Revenue$129.7B
Net Income$1.2B
Operating Cash Flow$921.0M
Capital Expenditure$546.0M
FCF Margin0.3%
Cash Conversion Rate77.5%
Net Margin0.9%
Total Debt$12.4B
Total Cash$4.2B
Net Cash-$8.2B
Current Ratio0.00
Debt / Equity0.70
Debt / FCF33.0x
YoY FCF Growth-171.8%
Positive Quarters3 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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