Cigna Corp (CI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.30 | 3.22 | 3.29 | 3.09 | 3.44 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Cigna Group (The) over the past five years, we observe the following trends:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The trend shows a relatively stable level over the years, ranging between 0.20 and 0.24. This suggests that Cigna Group has been able to maintain a healthy balance between debt and assets, with a lower ratio indicating less reliance on debt for asset financing.
2. Debt-to-capital ratio: This ratio measures the amount of debt relative to the total capital (debt + equity) of the company. The trend indicates a slight decrease from 0.45 in 2019 to 0.40 in 2023. A lower debt-to-capital ratio signifies a lower level of debt in the capital structure, which can be viewed positively in terms of financial risk management.
3. Debt-to-equity ratio: This ratio reflects the extent of financial leverage used by the company, indicating how much of the company's assets are funded by debt compared to shareholders' equity. The trend shows fluctuations over the years but has generally been decreasing from 0.83 in 2019 to 0.67 in 2023. A lower debt-to-equity ratio implies less reliance on debt financing, which can lead to lower financial risk for the company.
4. Financial leverage ratio: This ratio measures the extent of financial leverage used by the company, showing how much assets are financed by equity compared to debt. The trend fluctuates but shows a decreasing pattern from 3.44 in 2019 to 3.30 in 2023. A lower financial leverage ratio indicates a lower proportion of assets financed by debt, which may indicate a stronger financial position and reduced risk.
Overall, the solvency ratios of Cigna Group (The) suggest that the company has been managing its long-term financial obligations effectively by maintaining a balanced mix of debt and equity financing. The decreasing trends in debt-to-capital, debt-to-equity, and financial leverage ratios indicate a potential improvement in financial risk management and solvency over the years. However, it is essential to continue monitoring these ratios to ensure the company's long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.08 | 6.46 | 6.09 | 5.81 | 5.04 |
To calculate Cigna Group (The) interest coverage ratio, we would need information on the company's EBIT (Earnings Before Interest and Taxes) and its interest expenses. This ratio is typically calculated by dividing EBIT by the interest expenses. However, since the data for interest coverage ratio is not provided for the years 2019 to 2023, we are unable to perform the analysis or comment on the trend or financial health of the company in terms of its ability to cover its interest obligations. It is suggested to obtain the necessary financial figures to calculate the interest coverage ratio for a comprehensive assessment of Cigna Group (The)'s financial performance.