Cigna Corp (CI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 244,384,000 | 195,187,000 | 180,031,000 | 174,267,000 | 160,550,000 |
| Total current assets | US$ in thousands | 48,870,000 | 37,351,000 | 28,790,000 | 26,096,000 | 28,904,000 |
| Total current liabilities | US$ in thousands | 57,979,000 | 48,716,000 | 10,768,000 | 9,200,000 | 22,199,000 |
| Working capital turnover | — | — | 9.99 | 10.31 | 23.94 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $244,384,000K ÷ ($48,870,000K – $57,979,000K)
= —
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
Based on the data provided for Cigna Corp:
- For the year ending December 31, 2020, the working capital turnover was 23.94, indicating that Cigna effectively generated revenue nearly 24 times the value of its working capital during that period.
- In the following year, the ratio decreased to 10.31, indicating a decrease in the efficiency of working capital utilization.
- The trend continued in the subsequent years, with the ratio further declining to 9.99 by December 31, 2022.
However, there is missing data for the years ending December 31, 2023, and 2024, denoted as "—". It is essential to have complete data to assess the trend accurately and make informed conclusions about Cigna Corp's working capital turnover efficiency for those years.
In conclusion, the working capital turnover ratio for Cigna Corp has shown a decreasing trend from 2020 to 2022, which may signify potential challenges in the company's working capital management and could warrant further scrutiny to understand the underlying reasons behind this decline.
Peer comparison
Dec 31, 2024