Name: Cigna Group (NYSE:CI) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

Cigna Group, common-size consolidated income statement

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Pharmacy revenues	75.31%	70.71%	71.68%	70.37%	67.71%
Premiums	18.69%	22.79%	22.25%	23.85%	26.78%
Fees and other revenues	6.01%	6.50%	6.07%	5.77%	5.50%
Revenues from external customers	100.00%	100.00%	100.00%	100.00%	100.00%
Pharmacy and other service costs	-74.15%	-68.93%	-69.60%	-68.14%	-65.02%
Medical costs and other benefit expenses	-15.70%	-18.70%	-17.96%	-19.45%	-20.55%
Gross profit	10.15%	12.37%	12.44%	12.41%	14.43%
Net investment income	0.40%	0.60%	0.64%	0.90%	0.78%
Selling, general and administrative expenses	-6.03%	-7.64%	-7.35%	-7.55%	-8.84%
Amortization of acquired intangible assets	-0.69%	-0.94%	-1.05%	-1.16%	-1.25%
Income from operations	3.83%	4.40%	4.69%	4.60%	5.12%
Interest expense on long-term and short-term debt	-0.61%	-0.72%	-0.72%	-0.75%	-0.88%
Other	0.03%	-0.02%	0.04%	0.05%	-0.02%
Interest expense and other	-0.58%	-0.74%	-0.68%	-0.70%	-0.90%
Debt extinguishment costs	0.00%	0.00%	0.00%	-0.08%	-0.13%
Net gain (loss) on sale of businesses	0.01%	-0.77%	0.93%	0.00%	2.64%
Net investment gains (losses)	-1.11%	-0.04%	-0.28%	0.11%	0.09%
Income before income taxes	2.14%	2.84%	4.66%	3.93%	6.83%
Income taxes	-0.61%	-0.07%	-0.90%	-0.79%	-1.49%
Net income	1.53%	2.77%	3.76%	3.14%	5.33%
Net income attributable to noncontrolling interests	-0.14%	-0.11%	-0.04%	-0.03%	-0.02%
Shareholders’ net income	1.40%	2.66%	3.72%	3.11%	5.31%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The financial performance from 2020 to 2024 is characterized by a significant shift in revenue composition and a progressive compression of net profit margins. While the organization has achieved efficiencies in administrative spending, these gains have been offset by rising pharmacy service costs and a decline in the relative contribution of premium-based revenue.

Revenue Composition Shifts: A clear transition in the revenue mix is observed, with pharmacy revenues increasing from 67.71% in 2020 to 75.31% by 2024. Conversely, premiums have seen a consistent decline, dropping from 26.78% to 18.69% over the same period. Fees and other revenues remained relatively stable, fluctuating slightly between 5.50% and 6.50%.
Cost Structure and Gross Margin Analysis: Gross profit margins have experienced a downward trend, falling from 14.43% in 2020 to 10.15% in 2024. This contraction is primarily driven by the increase in pharmacy and other service costs, which rose from 65.02% to 74.15% of total revenues. This upward pressure was partially mitigated by a reduction in medical costs and other benefit expenses, which decreased from 20.55% in 2020 to 15.70% in 2024.
Operating Expense Management: Operational efficiency improved over the five-year period. Selling, general, and administrative expenses decreased from 8.84% to 6.03%, suggesting successful cost-containment measures or scaling efficiencies. Additionally, the amortization of acquired intangible assets declined from 1.25% to 0.69%. Despite these reductions, income from operations still trended downward, moving from 5.12% to 3.83%.
Non-Operating Items and Net Profitability: Net investment income has steadily declined from 0.78% in 2020 to 0.40% in 2024. Furthermore, net investment gains transitioned into losses, reaching -1.11% by 2024, which further weighed on the bottom line. These factors, combined with the shrinking operating margin, resulted in a sharp decline in shareholders' net income, which fell from 5.31% in 2020 to 1.40% in 2024.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?