Cigna Corp (CI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 101.12% | 81.45% | 82.45% | 80.74% | 79.64% |
| Operating profit margin | 3.85% | 4.37% | 4.69% | 4.56% | 5.08% |
| Pretax margin | 2.16% | 2.82% | 4.66% | 3.90% | 6.77% |
| Net profit margin | 0.14% | 2.65% | 3.72% | 3.08% | 5.27% |
Based on the profitability ratios provided for Cigna Corp, the company's gross profit margin has shown a steady increase over the years, starting at 79.64% in 2020 and reaching 101.12% in 2024. This indicates that Cigna has been able to effectively control its production costs and generate higher profits from its goods or services.
However, the operating profit margin has shown a slight decline from 5.08% in 2020 to 3.85% in 2024. This suggests that the company's operating expenses relative to its revenue have increased, impacting its profitability at the operating level.
Furthermore, the pretax margin has fluctuated over the years, with a significant drop from 6.77% in 2020 to 2.16% in 2024. This indicates that Cigna's profitability before accounting for taxes has been under pressure, possibly due to changes in revenue and expenses.
Lastly, the net profit margin has also shown a downward trend, decreasing from 5.27% in 2020 to 0.14% in 2024. This declining trend suggests that Cigna's overall profitability after accounting for all expenses, including taxes, has been diminishing over the years.
In conclusion, while Cigna Corp has demonstrated strong gross profit margins, there are concerns regarding its operating efficiency, pre-tax profitability, and overall net profitability, which require further analysis and strategic management decisions to improve the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.04% | 5.59% | 5.87% | 5.13% | 5.24% |
| Return on assets (ROA) | 0.22% | 3.38% | 4.66% | 3.47% | 5.44% |
| Return on total capital | 16.34% | 14.15% | 22.25% | 15.90% | 23.20% |
| Return on equity (ROE) | 0.84% | 11.17% | 14.94% | 11.40% | 16.81% |
Cigna Corp's profitability ratios demonstrate varying levels of performance over the five-year period from 2020 to 2024.
- Operating return on assets (Operating ROA) remained relatively stable during this period, ranging from 5.13% to 6.04%. This indicates that the company was able to generate profits efficiently from its assets used in operations.
- Return on assets (ROA) showed more fluctuation, with a high of 5.44% in 2020 and a low of 0.22% in 2024. The declining trend suggests that Cigna Corp's overall profitability in relation to its total assets weakened over the years.
- Similarly, return on total capital experienced fluctuations, peaking at 23.20% in 2020 and declining to 16.34% in 2024. This ratio reflects the company's ability to generate returns for both debt and equity providers.
- Return on equity (ROE) also saw a significant decrease from 16.81% in 2020 to 0.84% in 2024. This indicates a decline in the profitability of the company for its shareholders over the period.
In summary, while Cigna Corp maintained stable operational profitability, its overall profitability, return on assets, return on total capital, and return on equity decreased over the five-year period, signaling potential challenges that may need to be addressed to improve financial performance and generate higher returns for investors.