Cigna Corp (CI)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	28,482,000	37,762,000	37,162,000	36,681,000	36,287,000	59,213,000	58,040,000	57,198,000	56,420,000	-70,727,000	-70,151,000	-69,859,000	-70,122,000	-61,183,000	-61,084,000	-62,456,000	-62,139,000	-60,723,000	-61,418,000	-60,954,000
Inventory	US$ in thousands	—	5,083,000	5,173,000	4,630,000	5,645,000	4,416,000	4,514,000	4,211,000	4,777,000	4,017,000	3,781,000	3,500,000	3,722,000	3,020,000	3,042,000	2,919,000	3,165,000	2,657,000	2,712,000	2,565,000
Inventory turnover		—	7.43	7.18	7.92	6.43	13.41	12.86	13.58	11.81	-17.61	-18.55	-19.96	-18.84	-20.26	-20.08	-21.40	-19.63	-22.85	-22.65	-23.76

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,482,000K ÷ $—K
= —

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times it sells and replaces its inventory during a specific period. A higher inventory turnover ratio generally signifies better inventory management.

Analyzing the inventory turnover data for Cigna Corp from March 31, 2020, to December 31, 2024, reveals a consistent trend of negative ratios, indicating that the company is not efficiently managing its inventory during this period. The negative values imply that the company's inventory turnover was below 1, suggesting slow-moving or excess inventory.

However, there is a notable improvement starting in December 31, 2022, where the inventory turnover turns positive. This positive shift indicates that Cigna Corp started to manage its inventory more effectively, selling and replacing its inventory more frequently.

Overall, the increasing trend in inventory turnover ratios from December 2022 to December 2024 suggests that Cigna Corp has been working on improving its inventory management practices. It is crucial for the company to continue this positive trend to enhance operational efficiency and profitability in the future.