Cigna Corp (CI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,704,000 | 6,539,000 | 9,983,000 | 7,490,000 | 11,675,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 41,033,000 | 46,223,000 | 44,872,000 | 47,112,000 | 50,321,000 |
| Return on total capital | 16.34% | 14.15% | 22.25% | 15.90% | 23.20% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,704,000K ÷ ($—K + $41,033,000K)
= 16.34%
Cigna Corp's return on total capital has demonstrated fluctuations over the past five years. The ratio stood at 23.20% as of December 31, 2020, indicating a robust performance in generating returns relative to its total capital employed. However, there was a decline in the following year, with the ratio dropping to 15.90% by December 31, 2021.
Despite this decrease, Cigna Corp managed to improve its return on total capital to 22.25% by the end of 2022, suggesting a more efficient utilization of its capital base. Subsequently, the ratio declined again to 14.15% by December 31, 2023, reflecting potential challenges in generating returns proportionate to the capital invested.
In the most recent year reported, December 31, 2024, Cigna Corp's return on total capital recovered slightly to 16.34%. Overall, the trend in the return on total capital indicates fluctuations in the company's ability to generate profits relative to the total capital employed, which may require further analysis to understand the underlying factors influencing these changes.
Peer comparison
Dec 31, 2024