Cigna Corp (CI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | — | 0.86 | 0.83 | 0.83 | 0.77 | 0.73 | 0.73 | 0.72 | 2.67 | 1.11 | 1.44 | 1.09 | 7.62 | 2.95 | 3.13 | 3.39 | 3.16 | 3.06 | 3.35 | 0.40 |
| Quick ratio | — | 0.12 | 0.14 | 0.18 | 0.18 | 0.20 | 0.22 | 0.20 | 0.63 | 0.29 | 0.20 | 0.21 | 0.65 | 0.21 | 0.24 | 0.40 | 0.52 | 0.27 | 0.38 | 0.07 |
| Cash ratio | — | 0.12 | 0.14 | 0.18 | 0.18 | 0.20 | 0.22 | 0.20 | 0.63 | 0.29 | 0.20 | 0.21 | 0.65 | 0.21 | 0.24 | 0.40 | 0.52 | 0.27 | 0.38 | 0.07 |
The current ratio of Cigna Corp has experienced fluctuations over the reporting periods, with a significant increase from 2020 to 2021, followed by some volatility in recent quarters. The current ratio peaked at 7.62 as of December 31, 2021, indicating the company had more than enough current assets to cover its current liabilities. However, the ratio dropped to lower levels in the following quarters, reaching 0.86 as of December 31, 2024.
Conversely, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also showed fluctuations over the periods. It peaked at 0.65 as of December 31, 2021, indicating Cigna Corp had a moderate ability to cover its current liabilities without relying on inventory. Nonetheless, the quick ratio decreased to 0.12 as of September 30, 2024, reflecting a potential strain on the company's immediate liquidity position.
The cash ratio, which focuses solely on the most liquid assets, generally mirrored the trends observed in the quick ratio. It fluctuated over the quarters and saw a decline to 0.12 as of September 30, 2024, indicating Cigna Corp had a lower ability to cover its current liabilities with cash and cash equivalents alone.
Overall, the liquidity analysis of Cigna Corp based on these ratios suggests that while the company had a strong liquidity position in some periods, there were instances where the ability to cover short-term obligations weakened, possibly signaling the need for closer monitoring of cash flow management and working capital levels.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
For Cigna Corp, the cash conversion cycle remained consistently at 0.00 days from March 31, 2020, to December 31, 2021, indicating that the company efficiently managed its cash flow during this period.
However, there was a significant increase in the cash conversion cycle starting from March 31, 2022, where it increased to 30.90 days, and continued to fluctuate over the following quarters, peaking at 56.78 days on December 31, 2023. This increase suggests that Cigna Corp may have faced challenges in managing its working capital efficiently during this period.
Subsequently, the cash conversion cycle decreased to 46.07 days on March 31, 2024, indicating some improvement in the company's cash flow management. However, by the end of December 31, 2024, the cash conversion cycle remained at 0.00 days, possibly due to corrective actions taken by Cigna Corp to address the earlier increase in the cycle.
Overall, the analysis of Cigna Corp's cash conversion cycle highlights both periods of efficient cash flow management and challenges in working capital management, pointing towards the company's ability to adapt and improve its financial operations over time.