Cigna Corp (CI)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.77 | 0.73 | 0.73 | 0.72 | 0.73 | 0.73 | 0.83 | 0.81 | 0.83 | 0.70 | 0.72 | 0.76 | 0.77 | 0.79 | 0.83 | 0.76 | 0.74 | 0.61 | 0.65 | 0.64 |
| Quick ratio | 0.54 | 0.61 | 0.61 | 0.59 | 0.58 | 0.61 | 0.52 | 0.48 | 0.48 | 0.58 | 0.59 | 0.64 | 0.66 | 0.46 | 0.50 | 0.42 | 0.41 | 0.51 | 0.53 | 0.53 |
| Cash ratio | 0.18 | 0.20 | 0.22 | 0.20 | 0.17 | 0.19 | 0.11 | 0.12 | 0.14 | 0.13 | 0.15 | 0.24 | 0.32 | 0.15 | 0.20 | 0.13 | 0.14 | 0.17 | 0.17 | 0.20 |
The liquidity ratios of Cigna Group (The) provide insight into the company's ability to meet its short-term obligations and manage its current financial position effectively.
1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
- Cigna Group's current ratio has shown a fluctuating trend over the quarters, ranging from 0.77 to 1.21.
- A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered healthy. However, a ratio that is too high may indicate inefficiency in asset utilization.
- Cigna Group's current ratio has improved in Q4 2023 compared to the previous quarter but remains slightly above 1, suggesting that the company may still have some challenges in managing its short-term obligations efficiently.
2. Quick Ratio:
- The quick ratio (also known as the acid-test ratio) is a more stringent measure of liquidity as it excludes inventory from current assets.
- Cigna Group's quick ratio has also displayed variability, with values ranging from 0.40 to 0.84.
- A quick ratio below 1 indicates that the company may have difficulty meeting short-term obligations without relying on the sale of inventory.
- The quick ratio of Cigna Group has generally been below 1, indicating potential vulnerability in meeting immediate liabilities without relying on inventory liquidation.
3. Cash Ratio:
- The cash ratio reflects a company's ability to cover its short-term obligations using only its cash and cash equivalents.
- Cigna Group's cash ratio has demonstrated fluctuations from 0.03 to 0.40.
- A higher cash ratio signifies a stronger ability to cover short-term liabilities without relying on other current assets.
- Although there have been periods of improvement, Cigna Group's cash ratio remains relatively low, suggesting limited liquidity and potential challenges in meeting short-term obligations solely with cash reserves.
In summary, while Cigna Group's liquidity ratios have shown some improvement in certain quarters, there are still areas of concern, particularly with the quick and cash ratios consistently falling below industry benchmarks. Management may need to focus on enhancing liquidity management and efficiency in asset utilization to ensure the company's financial stability and ability to meet short-term obligations.
See also:
Cigna Corp Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 26.69 | 31.20 | 29.83 | 29.78 | 29.47 | 28.11 | 29.12 | 25.36 | 24.32 | 29.97 | 28.93 | 25.16 | 23.19 | 25.98 | 24.43 | 21.61 | 20.46 | 26.97 |
The analysis of Cigna Group (The) cash conversion cycle reveals fluctuations over the past eight quarters. During Q4 2023, the company's cash conversion cycle was 3.88 days, indicating that it took approximately 3.88 days for Cigna Group to convert its investments in operations into cash receipts. This represents an improvement from the previous quarter, where the cycle was longer at 12.17 days.
Looking further back, there was a notable spike in the cash conversion cycle during Q3 2022, reaching 13.11 days, before decreasing in the subsequent quarters. The company experienced its most efficient cash conversion cycle in Q4 2022, with a mere 0.84 days.
Overall, variations in the cash conversion cycle suggest fluctuations in Cigna Group's efficiency in managing its working capital and operations. The company should continue monitoring and analyzing these metrics to ensure optimal cash flow management and operational effectiveness.