UnitedHealth Group Inc. offers health care coverage and related services to help people achieve improved health and well-being through all stages of life. The company's products and services reflect a number of core capabilities, including medical information management, health benefit administration, care coordination, risk assessment and pricing, health benefit design and provider contracting. With these capabilities, it is able to provide comprehensive health care management services through organized health systems and insurance products.
Industry:MED-HMO Sector: Medical Fiscal Year End:December Last Reported Quarter:06/30/10 Next EPS Date:10/19/10
Capital Structure Solvency and Cash Flow
As reported by the company, cash flow from operations was $5.6 billion in FY09, compared with $4.8 billion in FY08. UNH had $2.3 billion in cash available for general corporate use on December 31, 2010.
Guidance: UNH provided guidance for operating cash flow of $4.0 billion to $4.4 billion for FY10, compared with $5.0 billion in FY09. Capital expenditure is expected to be $0.9 billion for FY10, compared with $0.7 billion in FY09.
The company reduced its debt position by $1.6 billion y/y to $11.2 billion on December 31, 2009. The debt to debt plus equity ratio decreased to 32.1% from 38.1% on December 31, 2008.
Consolidated medical costs days payable were in line with management’s expectations of 52 days at the end of 4Q09 compared with 53 days at the end of 3Q09.
There were 8 days sales outstanding in accounts receivable at the end of 4Q09, compared with 9 days at the end of 4Q08. Cash collection remained solid despite broader economic pressures.
Share Repurchases: The company repurchased about 74 million shares during FY09 at a weighted average purchase price of $24.26 per share.
Guidance: UNH estimates that it will repurchase $2.0 to $2.5 billion of shares in FY10.
Investments: Investment income in FY09 included net realized capital gains of $11 million, including a net gain of $5 million in 4Q09. Gain were $11 million in FY09 compared with $6 million in net realized capital losses in FY08.
Last edited Mon Feb 08, 2010 02:59 AM by SudiptaMukherjee (Zacks Investment Research)
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Governance Social Responsibility and Employee Relations
