Cigna Corp (CI)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	344,000	5,164,000	6,704,000	5,370,000	8,458,000
Total stockholders’ equity	US$ in thousands	41,033,000	46,223,000	44,872,000	47,112,000	50,321,000
ROE		0.84%	11.17%	14.94%	11.40%	16.81%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $344,000K ÷ $41,033,000K
= 0.84%

Cigna Corp's return on equity (ROE) has shown notable fluctuations over the past five years. As of December 31, 2020, the ROE stood at 16.81%, reflecting a strong profitability relative to shareholders' equity. However, by the end of 2021, there was a decline to 11.40%, indicating a decrease in the company's ability to generate profits from shareholders' investments.

In 2022, there was a slight recovery in ROE to 14.94%, suggesting an improvement in profitability compared to the previous year. The following year, by December 31, 2023, the ROE dropped to 11.17%, signaling a potential challenge in sustaining profitability.

The most significant change occurred by the end of 2024, where the ROE drastically decreased to a mere 0.84%. This sharp decline could indicate various factors affecting the company's profitability, such as operational inefficiencies, changes in the industry landscape, or financial challenges.

Overall, the trend in Cigna Corp's ROE over the five-year period reveals fluctuations that may require further investigation to understand the underlying reasons behind the changes and to assess the company's financial performance and efficiency in utilizing shareholders' equity.