UnitedHealth Group Bonds
| UNH Stock | USD 487.30 1.12 0.23% |
UnitedHealth Group holds a debt-to-equity ratio of 0.586. As of now, UnitedHealth Group's Long Term Debt is increasing as compared to previous years. The UnitedHealth Group's current Long Term Debt Total is estimated to increase to about 65.8 B, while Short and Long Term Debt is projected to decrease to under 3.9 B. UnitedHealth Group's financial risk is the risk to UnitedHealth Group stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
UnitedHealth Group's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. UnitedHealth Group's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps UnitedHealth Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect UnitedHealth Group's stakeholders.
For most companies, including UnitedHealth Group, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running UnitedHealth Group Incorporated the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book 4.5621 | Book Value 100.184 | Operating Margin 0.0795 | Profit Margin 0.0405 | Return On Assets 0.0709 |
UnitedHealth |
UnitedHealth Group Bond Ratings
UnitedHealth Group Incorporated bond ratings play a critical role in determining how much UnitedHealth Group have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for UnitedHealth Group's borrowing costs.| Piotroski F Score | 6 Healthy |
| Beneish M Score | -2.29 Unlikely Manipulator |
UnitedHealth Group Debt to Cash Allocation
As UnitedHealth Group Incorporated follows its natural business cycle, the capital allocation decisions will not magically go away. UnitedHealth Group's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has 67.44 B in debt with debt to equity (D/E) ratio of 0.59, which is OK given its current industry classification. UnitedHealth Group has a current ratio of 0.76, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist UnitedHealth Group until it has trouble settling it off, either with new capital or with free cash flow. So, UnitedHealth Group's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like UnitedHealth Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for UnitedHealth to invest in growth at high rates of return. When we think about UnitedHealth Group's use of debt, we should always consider it together with cash and equity.UnitedHealth Group Total Assets Over Time
UnitedHealth Group Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the UnitedHealth Group's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of UnitedHealth Group, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a an UnitedHealth Group debt ratio should be compared their industry average or other competing firms.UnitedHealth Group Corporate Bonds Issued
UnitedHealth Group issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. UnitedHealth Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most UnitedHealth bonds can be classified according to their maturity, which is the date when UnitedHealth Group Incorporated has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
UnitedHealth Net Debt
Net Debt |
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Understaning UnitedHealth Group Use of Financial Leverage
UnitedHealth Group financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures UnitedHealth Group's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of UnitedHealth Group assets, the company is considered highly leveraged. Understanding the composition and structure of overall UnitedHealth Group debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to UnitedHealth Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of UnitedHealth Group's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Net Debt | 42 B | 44.1 B | |
| Short and Long Term Debt Total | 67.4 B | 70.8 B | |
| Short Term Debt | 5.3 B | 5.6 B | |
| Long Term Debt | 58.3 B | 61.2 B | |
| Long Term Debt Total | 62.7 B | 65.8 B | |
| Short and Long Term Debt | 4.3 B | 3.9 B | |
| Net Debt To EBITDA | 1.16 | 1.21 | |
| Debt To Equity | 0.72 | 0.62 | |
| Interest Debt Per Share | 72.01 | 75.61 | |
| Debt To Assets | 0.23 | 0.13 | |
| Long Term Debt To Capitalization | 0.40 | 0.21 | |
| Total Debt To Capitalization | 0.42 | 0.24 | |
| Debt Equity Ratio | 0.72 | 0.62 | |
| Debt Ratio | 0.23 | 0.13 | |
| Cash Flow To Debt Ratio | 0.46 | 0.43 |
UnitedHealth Group Investors Sentiment
The influence of UnitedHealth Group's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in UnitedHealth. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to UnitedHealth Group's public news can be used to forecast risks associated with an investment in UnitedHealth. The trend in average sentiment can be used to explain how an investor holding UnitedHealth can time the market purely based on public headlines and social activities around UnitedHealth Group Incorporated. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
UnitedHealth Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for UnitedHealth Group's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average UnitedHealth Group's news discussions. The higher the estimated score, the more favorable is the investor's outlook on UnitedHealth Group.
UnitedHealth Group Implied Volatility | 37.67 |
UnitedHealth Group's implied volatility exposes the market's sentiment of UnitedHealth Group Incorporated stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if UnitedHealth Group's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that UnitedHealth Group stock will not fluctuate a lot when UnitedHealth Group's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards UnitedHealth Group in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, UnitedHealth Group's short interest history, or implied volatility extrapolated from UnitedHealth Group options trading.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether UnitedHealth Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of UnitedHealth Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Unitedhealth Group Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Unitedhealth Group Incorporated Stock:Check out the analysis of UnitedHealth Group Fundamentals Over Time. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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When running UnitedHealth Group's price analysis, check to measure UnitedHealth Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy UnitedHealth Group is operating at the current time. Most of UnitedHealth Group's value examination focuses on studying past and present price action to predict the probability of UnitedHealth Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move UnitedHealth Group's price. Additionally, you may evaluate how the addition of UnitedHealth Group to your portfolios can decrease your overall portfolio volatility.
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Is UnitedHealth Group's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of UnitedHealth Group. If investors know UnitedHealth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about UnitedHealth Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.16 | Dividend Share 7.52 | Earnings Share 16.38 | Revenue Per Share 411.257 | Quarterly Revenue Growth 0.086 |
The market value of UnitedHealth Group is measured differently than its book value, which is the value of UnitedHealth that is recorded on the company's balance sheet. Investors also form their own opinion of UnitedHealth Group's value that differs from its market value or its book value, called intrinsic value, which is UnitedHealth Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because UnitedHealth Group's market value can be influenced by many factors that don't directly affect UnitedHealth Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between UnitedHealth Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if UnitedHealth Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, UnitedHealth Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.