Cigna Corp (CI)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	6,704,000	6,539,000	9,983,000	7,490,000	11,675,000
Interest expense	US$ in thousands	1,435,000	1,446,000	1,228,000	1,208,000	1,438,000
Interest coverage		4.67	4.52	8.13	6.20	8.12

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $6,704,000K ÷ $1,435,000K
= 4.67

Based on the provided data, the interest coverage ratio of Cigna Corp has fluctuated over the past five years. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt.

In December 2020, the interest coverage ratio was 8.12, indicating that the company earned 8.12 times the amount needed to cover its interest expenses. This suggests a strong ability to meet interest obligations.

However, in December 2021, the interest coverage ratio decreased to 6.20, indicating a slight decline in the company's ability to cover its interest expenses.

Subsequently, in December 2022, the interest coverage ratio improved to 8.13, showing a recovery in the company's ability to meet interest obligations.

Unfortunately, in December 2023, the interest coverage ratio dropped significantly to 4.52, suggesting potential challenges in meeting interest payments.

Lastly, in December 2024, the interest coverage ratio slightly increased to 4.67, but it remains below the levels observed in 2020 and 2022.

Overall, the fluctuating trend in Cigna Corp's interest coverage ratios over the past five years indicates some variability in the company's ability to cover its interest expenses, with a notable decline in 2023. It would be important for stakeholders to monitor this ratio closely to ensure the company's financial health and ability to meet its debt obligations.