Return on Equity (ROE)
since 2005
Calculation
Cigna Group, ROE, long-term trends, calculation
| ROE | = | 100 | × | Shareholders’ net income1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 8.37% | = | 100 | × | 3,434) | ÷ | 41,033) |
| Dec 31, 2023 | 11.17% | = | 100 | × | 5,164) | ÷ | 46,223) |
| Dec 31, 2022 | 14.86% | = | 100 | × | 6,668) | ÷ | 44,872) |
| Dec 31, 2021 | 11.39% | = | 100 | × | 5,365) | ÷ | 47,112) |
| Dec 31, 2020 | 16.81% | = | 100 | × | 8,458) | ÷ | 50,321) |
| Dec 31, 2019 | 11.26% | = | 100 | × | 5,104) | ÷ | 45,338) |
| Dec 31, 2018 | 6.43% | = | 100 | × | 2,637) | ÷ | 41,028) |
| Dec 31, 2017 | 16.32% | = | 100 | × | 2,237) | ÷ | 13,711) |
| Dec 31, 2016 | 13.60% | = | 100 | × | 1,867) | ÷ | 13,723) |
| Dec 31, 2015 | 17.40% | = | 100 | × | 2,094) | ÷ | 12,035) |
| Dec 31, 2014 | 19.51% | = | 100 | × | 2,102) | ÷ | 10,774) |
| Dec 31, 2013 | 13.97% | = | 100 | × | 1,476) | ÷ | 10,567) |
| Dec 31, 2012 | 16.61% | = | 100 | × | 1,623) | ÷ | 9,769) |
| Dec 31, 2011 | 15.90% | = | 100 | × | 1,327) | ÷ | 8,344) |
| Dec 31, 2010 | 20.24% | = | 100 | × | 1,345) | ÷ | 6,645) |
| Dec 31, 2009 | 24.04% | = | 100 | × | 1,302) | ÷ | 5,417) |
| Dec 31, 2008 | 8.13% | = | 100 | × | 292) | ÷ | 3,592) |
| Dec 31, 2007 | 23.48% | = | 100 | × | 1,115) | ÷ | 4,748) |
| Dec 31, 2006 | 26.67% | = | 100 | × | 1,155) | ÷ | 4,330) |
| Dec 31, 2005 | 30.32% | = | 100 | × | 1,625) | ÷ | 5,360) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
An analysis of the financial performance from 2005 to 2024 reveals a significant structural shift in the company's capital base and profitability efficiency. The period is characterized by two distinct eras: a high-ROE phase with a lean equity base prior to 2018, and a lower-ROE phase following a massive expansion of shareholders' equity.
- Net Income Trends
- Shareholders' net income exhibited substantial volatility over the two-decade span. A sharp contraction occurred in 2008, where income fell to 292 million US$, before recovering to a steady growth trajectory. A period of exceptional growth was observed between 2019 and 2020, with net income peaking at 8.458 billion US$ in 2020. However, a downward trend has emerged since 2022, with 2024 reporting a decrease to 3.434 billion US$.
- Shareholders' Equity Evolution
- The equity base remained relatively stable and grew modestly from 5.360 billion US$ in 2005 to 13.711 billion US$ in 2017. A pivotal change occurred in 2018, where shareholders' equity surged to 41.028 billion US$, effectively tripling the capital base in a single year. This elevated level of equity persisted through 2024, peaking at 50.321 billion US$ in 2019 before moderating to 41.033 billion US$ by the end of the period.
- Return on Equity (ROE) Dynamics
- ROE demonstrates a long-term declining trend, despite intermittent spikes in net income. In the early period (2005–2007), the company maintained high efficiency with ROE figures between 23.48% and 30.32%. The 2008 downturn caused a temporary drop to 8.13%, followed by a period of stabilization between 13% and 20% until 2017. The massive increase in equity in 2018 created a significant dilution effect, causing ROE to drop to 6.43%.
- Efficiency Correlation
- The divergence between net income and ROE is most evident between 2019 and 2021. Despite net income reaching historic highs during this window, the ROE remained suppressed (ranging from 11.26% to 16.81%) due to the vastly expanded equity denominator. The most recent data from 2024 indicates a further decline in efficiency, with ROE falling to 8.37%, driven by the simultaneous reduction in net income and a high capital base.
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Comparison to Competitors
Cigna Group, ROE, long-term trends, comparison to competitors
| Cigna Group | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 8.37% | 28.12% | 14.47% | 14.13% | 7.32% | 15.55% |
| Dec 31, 2023 | 11.17% | 14.83% | 15.23% | 13.51% | 7.30% | 25.22% |
| Dec 31, 2022 | 14.86% | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 11.39% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 16.81% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 11.26% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 6.43% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 16.32% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 13.60% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 17.40% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 19.51% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 13.97% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 16.61% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 15.90% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 20.24% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 24.04% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 8.13% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 23.48% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 26.67% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 30.32% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Cigna Group, ROE, long-term trends, comparison to sector (health care equipment & services)
| Cigna Group | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2024 | 8.37% | 16.02% |
| Dec 31, 2023 | 11.17% | 17.13% |
| Dec 31, 2022 | 14.86% | 18.40% |
| Dec 31, 2021 | 11.39% | 17.28% |
| Dec 31, 2020 | 16.81% | 15.80% |
| Dec 31, 2019 | 11.26% | 15.85% |
| Dec 31, 2018 | 6.43% | 13.28% |
| Dec 31, 2017 | 16.32% | 12.21% |
| Dec 31, 2016 | 13.60% | 10.70% |
| Dec 31, 2015 | 17.40% | 11.84% |
| Dec 31, 2014 | 19.51% | 13.81% |
| Dec 31, 2013 | 13.97% | 14.22% |
| Dec 31, 2012 | 16.61% | 17.99% |
| Dec 31, 2011 | 15.90% | 17.02% |
| Dec 31, 2010 | 20.24% | 17.62% |
| Dec 31, 2009 | 24.04% | 19.50% |
| Dec 31, 2008 | 8.13% | 17.63% |
| Dec 31, 2007 | 23.48% | 20.02% |
| Dec 31, 2006 | 26.67% | 16.70% |
| Dec 31, 2005 | 30.32% | 16.22% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Cigna Group, ROE, long-term trends, comparison to industry (health care)
| Cigna Group | Health Care | |
|---|---|---|
| Dec 31, 2024 | 8.37% | 15.74% |
| Dec 31, 2023 | 11.17% | 19.40% |
| Dec 31, 2022 | 14.86% | 24.82% |
| Dec 31, 2021 | 11.39% | 25.44% |
| Dec 31, 2020 | 16.81% | 16.70% |
| Dec 31, 2019 | 11.26% | 23.30% |
| Dec 31, 2018 | 6.43% | 21.27% |
| Dec 31, 2017 | 16.32% | 13.77% |
| Dec 31, 2016 | 13.60% | 18.53% |
| Dec 31, 2015 | 17.40% | 18.52% |
| Dec 31, 2014 | 19.51% | 19.17% |
| Dec 31, 2013 | 13.97% | 18.81% |
| Dec 31, 2012 | 16.61% | 18.20% |
| Dec 31, 2011 | 15.90% | 15.90% |
| Dec 31, 2010 | 20.24% | 14.85% |
| Dec 31, 2009 | 24.04% | 20.14% |
| Dec 31, 2008 | 8.13% | 20.29% |
| Dec 31, 2007 | 23.48% | 17.87% |
| Dec 31, 2006 | 26.67% | 20.49% |
| Dec 31, 2005 | 30.32% | 18.28% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).