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.
Peer comparison
Dec 31, 2023