| 2017 | 2018 | 2020 | 2021 (projected) | Cost of Revenue | 43.5 B | 45.88 B | 52.76 B | 49.4 B | Consolidated Income | 2.45 B | 1.68 B | 1.94 B | 1.8 B |
What to know before acquiring Humana (NYSE:HUM) based on its volatility?
 | By Raphi Shpitalnik | Macroaxis Story |
Humana is generating negative expected returns assuming volatility of 1.7901% on return distribution over 60 days investment horizon. While some of us are excited about healthcare space, it makes sense to summarize Humana in greater detail to make a better estimate of its risk and reward. We will summarize how risky is to take a position in Humana at this time.
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Reviewed by Michael Smolkin
Humana Inc has roughly 20.73 B in cash with 5.87 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 156.61. Volatility is a rate at which the price of Humana or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Humana may increase or decrease. In other words, similar to Humana's beta indicator, it measures the risk of Humana and helps estimate the fluctuations that may happen in a short period of time. So if prices of Humana fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Humana's Liquidity
Humana financial leverage refers to using borrowed capital as a funding source to finance Humana Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Humana financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Humana'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 Humana'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). Please check the breakdown between Humana's total debt and its cash.
Detailed Outlook On Humana
The new Humana price pull down may raise some interest from stakeholders. The stock closed today at a share price of 376.99 on 1,366,600 in trading volume. The company executives were unable to exploit market volatilities in January. However, diversifying your overall positions with Humana Inc can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.79. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Humana Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.