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 | Jun 30, 2019 | Mar 31, 2019 | ||
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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 | 154,401,000 | 154,348,000 |
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 | 43,815,000 | 42,408,000 |
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 | 3.52 | 3.64 |
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.
Peer comparison
Dec 31, 2023