Cigna Corp (CI)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.77 | 0.73 | 0.83 | 0.77 | 0.74 |
| Quick ratio | 0.54 | 0.58 | 0.48 | 0.66 | 0.41 |
| Cash ratio | 0.18 | 0.17 | 0.14 | 0.32 | 0.14 |
The liquidity ratios of Cigna Group (The) have shown varying trends over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been improving gradually. It was 0.79 in 2019 and increased to 1.12 in 2023, indicating that the company has a stronger ability to cover its short-term liabilities with its current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown an upward trend. It improved from 0.27 in 2019 to 0.69 in 2023, suggesting that Cigna Group (The) has a better ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure and indicates the company's ability to pay off its current liabilities with cash and cash equivalents, has shown significant improvement. Starting at 0.05 in 2019, it increased to 0.38 in 2023, indicating that Cigna Group (The) has a stronger cash position relative to its short-term obligations.
Overall, these liquidity ratios suggest that Cigna Group (The) has been managing its short-term liquidity effectively and has improved its ability to meet obligations as they come due over the past five years. This indicates a favorable liquidity position for the company.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 28.37 | 29.47 | 26.26 | 23.19 | 20.46 |
The cash conversion cycle for Cigna Group (The) has fluctuated over the past five years.
In 2023, the company's cash conversion cycle increased significantly to 3.88 days, indicating that it took longer for the company to convert its investments in inventory and other resources into cash. This could suggest potential inefficiencies in managing working capital.
In 2022, the cash conversion cycle improved to 0.84 days, showcasing the company's ability to optimize its working capital management and swiftly convert its resources into cash.
In 2021, the cash conversion cycle was negative at -0.30 days, suggesting that the company was effective in converting its investments into cash at a faster rate than paying off its obligations. While negative days indicate efficiency in cash management, it is important for the company to ensure sustainable operations and liquidity.
In 2020, the cash conversion cycle increased to 21.54 days, indicating a deterioration in the company's ability to efficiently manage its working capital. This longer cycle could suggest potential challenges in converting investments into cash and meeting financial obligations.
In 2019, the cash conversion cycle was 18.57 days, showing a moderately long cycle compared to the following years. This could indicate that the company was facing some challenges in optimizing its working capital efficiency.
Overall, the trend in Cigna Group's cash conversion cycle highlights fluctuations that may be influenced by various factors such as operational efficiency, inventory management, and payment cycles. Monitoring and optimizing the cash conversion cycle is crucial for the company to ensure effective working capital management and sustainable financial performance.