Our operational improvements have positioned us well to navigate adverse conditions, proving our resilience.
— CEO, Aflac Incorporated
03Detailed Report
0H68.L
Aflac Incorporated
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
In Q2 2024, Aflac Incorporated demonstrated resilience in its financial performance with a reported net income of $1.755 billion, marking a notable year-over-year increase of 7.41%. Despite a slight decrease in revenue to $5.157 billion, which represented a 0.31% decline compared to last year and a 5.15% decrease from the previous quarter, the company's operating income rose by 10.63%. This positive trend suggests effective cost management and operational efficiencies amidst challenging market conditions. Management emphasized their commitment to continuing to enhance product offerings and improve financial health.
Aflac's balance sheet remains robust, characterized by a solid cash position of $6.060 billion, allowing for sustained operational and investment activities. The management noted their cautious yet optimistic outlook for the coming quarters, focusing on strategic growth initiatives, particularly in Aflac Japan and the U.S. Market. Overall, while external pressures persist, Aflac appears well-positioned to leverage its strengths and capitalize on growth opportunities over the next fiscal periods.
Key Performance Indicators
Revenue
Decreasing
5.16B
QoQ: -5.15% | YoY: -0.31%
Gross Profit
Decreasing
5.16B
1.00% margin
QoQ: -5.15% | YoY: -0.31%
Operating Income
Increasing
2.02B
QoQ: -6.96% | YoY: 10.63%
Net Income
Increasing
1.76B
QoQ: -6.60% | YoY: 7.41%
EPS
Increasing
3.11
QoQ: -4.89% | YoY: 14.34%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue Performance: Aflac reported revenues of $5.157 billion in Q2 2024, a decrease of 0.31% year-over-year and a 5.15% decline from Q1 2024. This marginal decline suggests potential market headwinds affecting premium growth and retention.
2. Profitability: The company’s net income amounted to $1.755 billion, reflecting a year-over-year increase of 7.41%. This translates to an EPS of $3.11, which shows a 14.34% growth compared to the same quarter last year, indicating strong operational effectiveness and cost discipline.
3. Operating Income: Operational efficiency is highlighted by an operating income of $2.019 billion for a margin of 39.1%, despite a decrease in total revenue. This points to improved cost management practices.
4. Cash Flow: The net cash provided by operating activities was $255 million, alongside a positive free cash flow of $255 million, indicating good liquidity to meet ongoing obligations and reinvest in growth opportunities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.16B
-0.31%
-5.15%
Gross Profit
5.16B
-0.31%
-5.15%
Operating Income
2.02B
10.63%
-6.96%
Net Income
1.76B
7.41%
-6.60%
EPS
3.11
14.34%
-4.89%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
86.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
34.20%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
1.46%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.74%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.11
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.28
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
7.21x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.94x
Price-to-book ratio reasonable for profitable companies
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