Cigna Corp (CI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 223,309,000 | 204,682,000 | 200,373,000 | 185,488,000 | 176,819,000 |
| Inventory | US$ in thousands | 5,645,000 | 4,777,000 | 3,722,000 | 3,165,000 | 2,661,000 |
| Inventory turnover | 39.56 | 42.85 | 53.83 | 58.61 | 66.45 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $223,309,000K ÷ $5,645,000K
= 39.56
The inventory turnover ratio for Cigna Group (The) has been relatively stable in recent years, ranging from 6.43 to 9.02. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. The significant decrease in inventory turnover from 43.03 in 2020 to 6.43 in 2023 may suggest that Cigna Group (The) has been carrying more inventory relative to its sales, which could be a cause for concern as it may tie up working capital and increase storage costs. Further investigation into the reasons behind this sharp decrease is warranted to assess the company's inventory management efficiency.
Peer comparison
Dec 31, 2023