Cigna Corp (CI)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	49.13	50.81	46.07	56.78	27.22	28.39	26.87	30.90	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	0.00	49.13	50.81	46.07	56.78	27.22	28.39	26.87	30.90	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle is a crucial metric that measures how long it takes a company to convert its investments in inventory and other resources back into cash. For Cigna Corp, the cash conversion cycle remained stable at 0.00 days for several quarters, indicating efficient management of its cash flow during that period.

However, starting from the last quarter of 2022, there was a notable increase in the cash conversion cycle, reaching a peak of 56.78 days by the end of December 2023. This significant increase suggests potential challenges in managing inventory, accounts receivable, and accounts payable efficiently during that period.

In the following quarters, there were improvements in the cash conversion cycle, with the metric declining to 46.07 days by March 31, 2024, and further to 49.13 days by the end of September 2024. While these improvements show a positive trend, it's essential for Cigna Corp to closely monitor and manage its working capital to ensure a healthy cash conversion cycle going forward.