F
Humana Inc. — Earnings Quality Grade F
HUM · Healthcare
Major red flags
Revenue
$129.7B
2025
Net Income
$1.2B
2025
Gross Margin
—
Free Cash Flow
$375M
01
Screening Summary
8
Passed
1
Watch
3
Failed
—
M-Score
02
Financial Trends
Revenue & Net Income ($B)
Margins (%)
03
18-Point Screening
01
Revenue Quality
✓
A1DSO Change
DSO 9 days, change +1 days YoY
✗
A2AR vs Revenue Growth
AR outpaced revenue for 2 consecutive years
✗
A3Revenue vs CFFO
Revenue grew 10.1% but CFFO declined -68.9%
02
Expense Quality
✓
B1Inventory vs COGS
No material inventory
✓
B2CapEx vs Revenue
CapEx growth -5.0% vs revenue 10.1%. Normal
—
B3SG&A Ratio
Insufficient data
—
B4Gross Margin
Insufficient data
03
Cash Flow Quality
!
C1CFFO vs Net Income
CFFO/NI = 0.78. Below 1.0
✓
C2Free Cash Flow
FCF $0.4B, FCF/NI = 0.32
✓
C3Accruals Ratio
Accruals ratio = 0.5%. Low accruals
✓
C4Cash vs Debt
Cash $19.9B covers debt $12.4B
04
Balance Sheet Health
✗
D1Goodwill + Intangibles
Goodwill+Intangibles $10.8B = 61% of equity. Over 50%
—
D2Leverage
Insufficient data
—
D3Soft Asset Growth
Insufficient data
—
D4Asset Impairment
No write-off data
05
Acquisition Risk
✓
E1Serial Acquirer FCF
FCF after acquisitions positive
✓
E2Goodwill Surge
Goodwill+Intangibles change -2% YoY. Normal
06
Manipulation Score
—
F1Beneish M-Score
Insufficient data
05
Altman Z-Score
2.83
Safe Zone0 Distress1.102.605.0+ Safe
0
Liquidity
0.5945
Cumulative profit
0.0447
Operating efficiency
0.5664
Leverage
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09