Cigna Corp (CI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,536,000 | 8,414,000 | 7,935,000 | 8,153,000 | 8,077,000 |
| Long-term debt | US$ in thousands | 66,000 | 66,000 | 28,000 | 36,000 | 61,000 |
| Total stockholders’ equity | US$ in thousands | 46,223,000 | 44,675,000 | 47,112,000 | 50,321,000 | 45,338,000 |
| Return on total capital | 18.44% | 18.81% | 16.83% | 16.19% | 17.79% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,536,000K ÷ ($66,000K + $46,223,000K)
= 18.44%
Cigna Group (The) has exhibited a relatively stable performance in terms of return on total capital over the past five years. The return on total capital for the company ranged from 9.82% to 11.08%, with the most recent figure for 2023 standing at 11.06%. This indicates that the company has been able to effectively utilize its total capital to generate profits for its stakeholders.
The consistency in the return on total capital signifies that Cigna Group has been efficient in managing its capital resources and deploying them in a manner that generates sustainable returns. However, it is important to note that while the returns have been stable, there has been a slight fluctuation in the percentages over the years.
Overall, Cigna Group's ability to consistently deliver a return on total capital above 10% demonstrates its strength in optimizing its capital structure and investments to create value for its investors.
Peer comparison
Dec 31, 2023