Cigna Corp (CI)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $66,000K ÷ $46,223,000K
= 0.00
The debt-to-equity ratio of Cigna Group (The) has shown a downward trend over the past five years, indicating a decreasing reliance on debt financing relative to equity. In 2023, the ratio was 0.67, lower than the previous year's ratio of 0.69. This suggests that the company's debt levels relative to equity decreased slightly in 2023.
Compared to 2019 when the ratio was 0.83, the company has successfully reduced its debt levels substantially over the years. A lower debt-to-equity ratio generally indicates lower financial risk and better financial health, as it signifies that the company is financing a smaller portion of its assets through debt.
However, it is important to note that the optimal debt-to-equity ratio varies by industry and company, and a low ratio may also indicate underutilization of debt for potential growth opportunities. Overall, the decreasing trend in Cigna Group's debt-to-equity ratio signifies a positive shift towards a more balanced capital structure.
Peer comparison
Dec 31, 2023