Cigna Corp (CI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,488,000 | 6,422,000 | 6,859,000 | 6,725,000 | 6,539,000 | 7,857,000 | 9,705,000 | 9,831,000 | 9,953,000 | 9,918,000 | 8,346,000 | 8,126,000 | 7,814,000 | 11,586,000 | 11,402,000 | 11,776,000 | 11,675,000 | 7,874,000 | 7,900,000 | 7,332,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 41,033,000 | 42,095,000 | 41,332,000 | 41,181,000 | 46,223,000 | 45,691,000 | 45,445,000 | 44,502,000 | 44,872,000 | 45,041,000 | 45,892,000 | 46,087,000 | 47,112,000 | 47,415,000 | 48,709,000 | 48,149,000 | 50,321,000 | 48,032,000 | 47,366,000 | 45,079,000 |
| Return on total capital | 20.69% | 15.26% | 16.59% | 16.33% | 14.15% | 17.20% | 21.36% | 22.09% | 22.18% | 22.02% | 18.19% | 17.63% | 16.59% | 24.44% | 23.41% | 24.46% | 23.20% | 16.39% | 16.68% | 16.26% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,488,000K ÷ ($—K + $41,033,000K)
= 20.69%
The return on total capital for Cigna Corp has shown fluctuations over the past several quarters. The ratio stood at 16.26% as of March 31, 2020, and increased gradually to reach 24.44% by September 30, 2021. This indicated an improvement in the company's ability to generate profits relative to its total capital employed.
However, there was a slight dip in the return on total capital to 16.59% by December 31, 2021, before rising again to 22.18% by the end of December 31, 2022. The ratio continued to be relatively stable in the range of 21-22% for the following quarters.
Overall, the return on total capital for Cigna Corp has shown a generally positive trend, indicating efficient utilization of its capital resources to generate returns for its stakeholders. Monitoring this ratio on an ongoing basis will be essential to assess the company's ability to generate profits relative to the total capital invested.
Peer comparison
Dec 31, 2024