Cigna Corp (CI)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019
Total assets	US$ in thousands	152,761,000	149,645,000	150,054,000	147,976,000	143,885,000	144,209,000	152,630,000	152,610,000	154,889,000	154,251,000	154,207,000	152,081,000	155,451,000	160,044,000	159,628,000	154,711,000	155,774,000	154,847,000
Total stockholders’ equity	US$ in thousands	46,223,000	45,691,000	45,445,000	44,502,000	44,675,000	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	45,338,000	44,696,000
Financial leverage ratio		3.30	3.28	3.30	3.33	3.22	3.20	3.33	3.31	3.29	3.25	3.17	3.16	3.09	3.33	3.37	3.43	3.44	3.46

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $152,761,000K ÷ $46,223,000K
= 3.30

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. A higher leverage ratio indicates a higher level of debt relative to equity, which can magnify both returns and risks for shareholders.

In the case of Cigna Group (The), the financial leverage ratio has shown fluctuations over the past eight quarters, ranging from 3.20 to 3.33. This suggests that the company has maintained a relatively stable level of leverage over this period, with an average ratio of approximately 3.29.

A ratio above 3 indicates that Cigna Group (The) has a higher proportion of debt in its capital structure compared to equity. Investors should consider that while a higher leverage ratio can potentially result in higher returns, it also exposes the company to higher financial risk, particularly in times of economic downturns or rising interest rates.

Overall, a thorough assessment of Cigna Group (The)'s financial leverage ratio suggests that the company has been managing its debt levels within a certain range, balancing the benefits and risks associated with leverage in its operations.