Cigna Corp (CI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	7,822,000	5,924,000	5,081,000	10,182,000	4,619,000
Short-term investments	US$ in thousands	925,000	905,000	920,000	1,331,000	937,000
Total current liabilities	US$ in thousands	48,716,000	41,225,000	43,572,000	36,022,000	40,138,000
Cash ratio		0.18	0.17	0.14	0.32	0.14

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,822,000K + $925,000K) ÷ $48,716,000K
= 0.18

The cash ratio for Cigna Group (The) has shown some fluctuations over the past five years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents, improved significantly from 0.04 in 2021 to 0.38 in 2023. This indicates that the company has increased its liquidity and ability to meet its short-term financial obligations using its available cash on hand.

However, it's worth noting that in 2022, the cash ratio dropped to 0.05, which may suggest a temporary decrease in liquidity compared to the surrounding years. The stable cash ratio of 0.05 in 2020 and 2019 indicates that the company has maintained a consistent level of liquidity over these years.

Overall, the upward trend in the cash ratio from 2021 to 2023 is a positive sign of improved liquidity management by Cigna Group (The), enhancing its ability to meet short-term financial commitments with its cash reserves.