Cigna Corp (CI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,488,000 | 6,422,000 | 6,859,000 | 6,725,000 | 6,539,000 | 7,857,000 | 9,705,000 | 9,831,000 | 9,953,000 | 9,918,000 | 8,346,000 | 8,126,000 | 7,814,000 | 11,586,000 | 11,402,000 | 11,776,000 | 11,675,000 | 7,874,000 | 7,900,000 | 7,332,000 |
| Interest expense (ttm) | US$ in thousands | 1,435,000 | 1,433,000 | 1,422,000 | 1,410,000 | 1,446,000 | 1,410,000 | 1,349,000 | 1,287,000 | 1,228,000 | 1,197,000 | 1,196,000 | 1,193,000 | 1,208,000 | 1,252,000 | 1,285,000 | 1,361,000 | 1,438,000 | 1,492,000 | 1,567,000 | 1,621,000 |
| Interest coverage | 5.91 | 4.48 | 4.82 | 4.77 | 4.52 | 5.57 | 7.19 | 7.64 | 8.11 | 8.29 | 6.98 | 6.81 | 6.47 | 9.25 | 8.87 | 8.65 | 8.12 | 5.28 | 5.04 | 4.52 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,488,000K ÷ $1,435,000K
= 5.91
Cigna Corp's interest coverage ratio has shown some fluctuations over the past few years. The ratio has generally been above 5, indicating that the company has been able to cover its interest expenses comfortably with its operating income.
From March 31, 2020, to September 30, 2021, the interest coverage ratio increased steadily from 4.52 to 9.25, reflecting improving financial health and the ability to easily meet interest payment obligations.
However, there was a noticeable decline in the interest coverage ratio in the subsequent periods, dropping to 4.52 by December 31, 2023. This downward trend continued until December 31, 2024, where the ratio improved slightly to 5.91.
Overall, while Cigna Corp's interest coverage ratio has experienced fluctuations, it generally remained above 5 during the period under review, indicating the company's ability to manage its interest expenses effectively. However, the recent decline in the ratio towards the end of the period may require further monitoring to assess the impact on the company's financial stability.
Peer comparison
Dec 31, 2024