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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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