Cigna Corp (CI)

Payables 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
Payables	US$ in thousands	8,553,000	7,775,000	6,655,000	5,478,000	5,090,000
Payables turnover		26.11	26.33	30.11	33.86	34.74

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $223,309,000K ÷ $8,553,000K
= 26.11

The payables turnover ratio measures how efficiently a company pays its suppliers. A higher payables turnover ratio typically indicates that a company is managing its payables effectively by paying off its suppliers more quickly.

In the case of Cigna Group (The), the payables turnover ratio has fluctuated over the past five years. The ratio was 4.24 in 2023, showing a slight increase from 4.14 in 2022. This implies that in 2023, Cigna Group (The) was able to pay its suppliers 4.24 times during the year, which is slightly better than the previous year.

When compared to 2021, where the payables turnover ratio was 5.04, the 2023 ratio is lower, indicating that Cigna Group (The) took longer to pay its suppliers in 2023 than in 2021.

However, the payables turnover ratios for 2020 and 2019 were significantly higher at 24.86 and 25.24 respectively. This suggests that in those years, Cigna Group (The) was paying off its suppliers at a much faster rate compared to the last two years.

Overall, the payables turnover ratio for Cigna Group (The) has shown fluctuations over the past five years, indicating varying levels of efficiency in managing supplier payables. Further analysis would be needed to understand the specific factors driving these changes and to assess the implications for the company's financial performance and liquidity.