Cigna Corp (CI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 17,722,000 | 17,218,000 | 15,071,000 | 12,191,000 | 10,716,000 |
| Total current liabilities | US$ in thousands | 48,716,000 | 41,225,000 | 43,572,000 | 36,022,000 | 40,138,000 |
| Quick ratio | 0.54 | 0.58 | 0.48 | 0.66 | 0.41 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,822,000K
+ $925,000K
+ $17,722,000K)
÷ $48,716,000K
= 0.54
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover immediate liabilities.
Looking at the historical trend of Cigna Group (The) quick ratio, we observe a positive increase over the past five years, from 0.27 in 2019 to 0.69 in 2023. This shows an improving liquidity position over the period.
In 2023, the quick ratio of 0.69 suggests that for every dollar of current liabilities, Cigna Group (The) has $0.69 of quick assets available to cover these obligations. This indicates the company has a better ability to meet its short-term debt commitments compared to previous years.
However, it is important to note that the quick ratio of 0.69 is still lower than the ideal value of 1, which might indicate that the company could further improve its liquidity position by increasing its quick assets relative to current liabilities.
Overall, the trend of increasing quick ratios over the years is a positive indicator of Cigna Group (The)'s improving liquidity position and ability to meet short-term obligations.
Peer comparison
Dec 31, 2023