Cigna Corp (CI)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	-2,737,000	36,209,000	32,206,000	33,562,000	32,710,000
Inventory	US$ in thousands	6,692,000	5,645,000	4,777,000	3,722,000	3,165,000
Inventory turnover		-0.41	6.41	6.74	9.02	10.33

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $-2,737,000K ÷ $6,692,000K
= -0.41

The inventory turnover for Cigna Corp has shown a decreasing trend over the years. In December 2020, the inventory turnover ratio was 10.33, indicating that the company's inventory was sold and replaced approximately 10.33 times during that year. However, by December 2024, the inventory turnover ratio had turned negative at -0.41, suggesting that the company's inventory turnover had decreased significantly, possibly due to slow sales or inefficient inventory management.

A declining inventory turnover ratio can signal potential issues such as overstocking, obsolete inventory, or slow-moving goods. Cigna Corp may need to reassess its inventory management practices to optimize stock levels and improve the efficiency of its operations. Furthermore, a negative inventory turnover ratio is concerning as it implies that the company may be struggling to sell its inventory, which could impact profitability and cash flow. Addressing these inventory turnover challenges is essential for Cigna Corp to enhance its operational performance and financial health.