Cigna Corp (CI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 3.80 | 3.30 | 3.21 | 3.29 | 3.09 |
The solvency ratios for Cigna Corp indicate a very low level of debt relative to its assets, capital, and equity over the past five years.
- The Debt-to-assets ratio has consistently remained at 0.00, suggesting that the company has not taken on any debt in relation to its total assets during this period.
- Similarly, the Debt-to-capital ratio has also maintained a 0.00 figure throughout the years, indicating that the company's debt level relative to its total capital remains negligible.
- The Debt-to-equity ratio has also stayed at 0.00, reflecting that Cigna Corp has not used debt financing to fund its operations in relation to shareholder equity.
- The Financial leverage ratio, which measures the company's total assets relative to its equity, has shown a slight increase from 3.09 in 2020 to 3.80 in 2024. This indicates that the company has increased its reliance on debt to fund its operations compared to equity over the years, but the ratio remains relatively low, indicating a conservative approach to leverage.
Overall, the solvency ratios suggest that Cigna Corp has maintained a strong financial position with minimal debt levels in relation to its assets, capital, and equity, which can be seen as a positive indicator of the company's financial stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.67 | 4.52 | 8.13 | 6.20 | 8.12 |
Based on the data provided, the interest coverage for Cigna Corp has shown some fluctuations over the years. In December 31, 2020, the interest coverage ratio was 8.12, indicating the company's ability to cover its interest expenses 8.12 times over. However, by December 31, 2023, this ratio decreased to 4.52, suggesting a potential strain on the company's ability to cover its interest payments with its earnings. The ratio slightly improved to 4.67 by December 31, 2024, but it still remains lower compared to previous years.
Overall, the downward trend in the interest coverage ratio from 2020 to 2024 raises some concerns about Cigna Corp's ability to meet its interest obligations comfortably. Investors and lenders may view this trend as a signal of increasing risk regarding the company's financial health and debt repayment capacity. Efforts to improve operational efficiency, increase profitability, or manage debt levels may be necessary to enhance the company's interest coverage in the future.