Cigna Corp (CI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	7,550,000	7,822,000	5,924,000	5,081,000	10,182,000
Short-term investments	US$ in thousands	665,000	925,000	905,000	920,000	1,331,000
Total current liabilities	US$ in thousands	57,979,000	48,716,000	10,768,000	9,200,000	22,199,000
Cash ratio		0.14	0.18	0.63	0.65	0.52

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,550,000K + $665,000K) ÷ $57,979,000K
= 0.14

The cash ratio of Cigna Corp has shown some fluctuations over the years based on the provided data. The cash ratio increased from 0.52 on December 31, 2020, to 0.65 on December 31, 2021, indicating an improvement in the company's ability to cover its short-term liabilities with cash and cash equivalents.

However, the ratio declined to 0.63 on December 31, 2022, before experiencing a significant drop to 0.18 on December 31, 2023, and further decreasing to 0.14 on December 31, 2024. These lower ratios may suggest that Cigna Corp may be holding lower levels of cash relative to its current liabilities in these years, potentially leading to liquidity concerns.

Overall, while the initial increase in the cash ratio was positive, the subsequent decline indicates a potential shift in the company's liquidity position towards a less favorable state. This trend should be closely monitored to ensure that Cigna Corp maintains sufficient cash reserves to meet its short-term obligations.