Cigna Corp (CI)

Payables turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cost of revenue (ttm) US$ in thousands 164,934,000 217,052,000 212,210,000 208,124,000 204,682,000 152,480,000 151,911,000 150,066,000 146,979,000 196,555,000 193,507,000 187,777,000 185,488,000 180,808,000 177,705,000 178,199,000 176,805,000 141,866,000
Payables US$ in thousands 8,553,000 7,673,000 8,072,000 7,360,000 7,775,000 6,870,000 7,142,000 6,632,000 6,655,000 5,659,000 5,647,000 5,640,000 5,478,000 5,327,000 5,413,000 5,585,000 5,090,000 4,502,000 4,517,000 4,488,000
Payables turnover 19.28 28.29 26.29 28.28 26.33 22.20 21.27 22.63 22.09 34.73 34.27 33.29 33.86 33.94 32.83 31.91 34.74 31.51

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $164,934,000K ÷ $8,553,000K
= 19.28

The payables turnover ratio measures how efficiently a company is managing its trade payables by evaluating how many times during a period the company pays off its average accounts payable balance. A higher payables turnover ratio indicates that the company is managing its payables effectively.

Analyzing the payables turnover data of Cigna Group (The) from Q4 2022 to Q4 2023, we observe fluctuations in the ratio. The payables turnover ranged from a low of 4.14 in Q4 2022 to a high of 5.10 in Q2 2022, indicating variability in the company's payment cycle efficiency.

Overall, the company's payables turnover ratio averaged at around 4.50 over the eight quarters, suggesting that, on average, Cigna Group (The) is paying off its accounts payable approximately 4.50 times a year. This indicates a relatively consistent trend in managing its payables during the period under review.

It is essential to consider industry benchmarks and peer comparisons to evaluate the effectiveness of Cigna Group's payables management further. Additionally, combining the payables turnover ratio analysis with other financial metrics can provide a more comprehensive assessment of the company's overall financial performance and efficiency in managing working capital.


Peer comparison

Dec 31, 2023


See also:

Cigna Corp Payables Turnover (Quarterly Data)