Cigna Corp (CI)
Quick ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,822,000 | 8,497,000 | 9,585,000 | 7,935,000 | 5,924,000 | 7,079,000 | 4,421,000 | 4,424,000 | 5,081,000 | 3,483,000 | 3,821,000 | 6,505,000 | 10,182,000 | 5,344,000 | 7,185,000 | 4,452,000 | 4,619,000 | 4,577,000 | 3,610,000 | 4,976,000 |
| Short-term investments | US$ in thousands | 925,000 | 1,046,000 | 872,000 | 914,000 | 905,000 | 783,000 | 754,000 | 731,000 | 920,000 | 1,374,000 | 1,305,000 | 1,477,000 | 1,331,000 | 1,324,000 | 1,190,000 | 973,000 | 937,000 | 1,371,000 | 1,665,000 | 1,662,000 |
| Receivables | US$ in thousands | 17,722,000 | 19,083,000 | 18,333,000 | 17,704,000 | 17,218,000 | 17,275,000 | 18,290,000 | 16,003,000 | 15,071,000 | 16,250,000 | 15,462,000 | 13,588,000 | 12,191,000 | 13,488,000 | 12,694,000 | 11,735,000 | 10,716,000 | 11,719,000 | 11,700,000 | 10,941,000 |
| Total current liabilities | US$ in thousands | 48,716,000 | 47,059,000 | 47,345,000 | 44,727,000 | 41,225,000 | 41,115,000 | 45,218,000 | 43,662,000 | 43,572,000 | 36,340,000 | 34,711,000 | 33,470,000 | 36,022,000 | 43,886,000 | 42,179,000 | 40,380,000 | 40,138,000 | 34,447,000 | 31,867,000 | 32,969,000 |
| 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 |
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, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Looking at the quick ratio of Cigna Group (The) over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the quick ratio was 0.69, which indicates that the company had $0.69 in liquid assets to cover each dollar of its current liabilities. This is a decrease from the previous quarter, where the ratio was 0.84.
The quick ratio in Q4 2023 may suggest that Cigna Group (The) has experienced a slight decrease in liquidity compared to the previous quarter. However, it is worth noting that the quick ratio of 0.69 is still above 0.5, which is a commonly accepted benchmark for a healthy quick ratio.
Further analysis of the trend shows that the quick ratio has improved since Q4 2022 when it was 0.40. This indicates that the company has strengthened its ability to cover short-term obligations with its liquid assets over the past year.
Overall, while the current quick ratio of 0.69 for Cigna Group (The) reflects a minor decrease in liquidity compared to the previous quarter, the company's liquidity position has shown an improvement over the past year. However, it is essential for the company to monitor and maintain a healthy quick ratio to ensure it can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023