Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Cigna Group, long-term (investment) activity ratios
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).
An analysis of long-term activity ratios reveals a consistent and accelerating upward trend across all measured metrics from 2020 through 2024. This trajectory indicates a systemic improvement in the efficiency with which assets and equity are utilized to generate revenue.
- Net Fixed Asset Turnover
- A significant increase in efficiency is observed, with the net fixed asset turnover ratio rising from 37.85 in 2020 to 67.36 in 2024. The version of this ratio including operating lease right-of-use assets followed a similar growth pattern, increasing from 33.46 to 67.36 over the same period. Notably, the gap between these two metrics narrowed steadily until they converged in 2024, suggesting a shift in the proportional impact of lease assets relative to overall revenue generation.
- Total Asset Turnover
- Total asset turnover demonstrates a steady positive progression, moving from 1.02 in 2020 to 1.58 in 2024. This continuous growth suggests an enhanced capacity to deploy the entire asset base more effectively to drive top-line results, with the most pronounced increase occurring between 2023 and 2024.
- Equity Turnover
- The equity turnover ratio exhibited the most substantial growth among the analyzed metrics, increasing from 3.16 in 2020 to 6.00 in 2024. While the growth was steady between 2020 and 2023, a sharp acceleration occurred in the final year, indicating a significantly higher volume of revenue generated per unit of shareholder equity.
The convergence of these trends suggests a lean operational strategy where revenue growth has outpaced the expansion of the asset and equity bases, resulting in heightened capital efficiency across the five-year period.
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Net Fixed Asset Turnover
Cigna Group, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from external customers | 246,148) | 194,099) | 179,361) | 172,529) | 159,157) | |
| Property and equipment | 3,654) | 3,695) | 3,774) | 3,692) | 4,205) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 67.36 | 52.53 | 47.53 | 46.73 | 37.85 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.94 | 3.95 | 4.76 | 4.81 | — | |
| Elevance Health Inc. | 37.66 | 39.05 | 36.07 | 34.94 | — | |
| Intuitive Surgical Inc. | 1.80 | 2.01 | 2.62 | 3.04 | — | |
| Medtronic PLC | 5.28 | 5.61 | 5.85 | 5.77 | — | |
| UnitedHealth Group Inc. | 37.44 | 32.10 | 31.81 | 31.81 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 17.82 | 17.57 | 17.82 | 17.31 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 7.29 | 7.22 | 7.88 | 7.74 | — | |
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).
1 2024 Calculation
Net fixed asset turnover = Revenues from external customers ÷ Property and equipment
= 246,148 ÷ 3,654 = 67.36
2 Click competitor name to see calculations.
An analysis of the investment activity ratios reveals a consistent and significant improvement in the efficiency of fixed asset utilization over the five-year period from 2020 to 2024. There is a clear divergence between the growth of external revenues and the level of investment in property and equipment, resulting in a substantial increase in the net fixed asset turnover ratio.
- Revenue Trends
- Revenues from external customers grew steadily from US$ 159,157 million in 2020 to US$ 246,148 million in 2024. While growth was consistent between 2020 and 2023, a sharp acceleration is observed in the final year, with revenues increasing by approximately 26.8% between December 31, 2023, and December 31, 2024.
- Property and Equipment Management
- Fixed asset levels showed a general downward trend, decreasing from US$ 4,205 million in 2020 to US$ 3,654 million in 2024. The most significant reduction occurred between 2020 and 2021, after which the asset base remained relatively stable, fluctuating within a narrow range between US$ 3,654 million and US$ 3,774 million.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio improved consistently every year, rising from 37.85 in 2020 to 67.36 in 2024. This upward trajectory indicates that the organization has become increasingly effective at generating revenue per unit of net fixed assets. The combination of expanding revenues and a contracting or stable asset base suggests a high degree of operational leverage and an asset-light growth strategy.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Cigna Group, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from external customers | 246,148) | 194,099) | 179,361) | 172,529) | 159,157) | |
| Property and equipment | 3,654) | 3,695) | 3,774) | 3,692) | 4,205) | |
| Operating lease ROU assets (included in Other assets) | —) | 370) | 375) | 478) | 552) | |
| Property and equipment (including operating lease, right-of-use asset) | 3,654) | 4,065) | 4,149) | 4,170) | 4,757) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 67.36 | 47.75 | 43.23 | 41.37 | 33.46 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 3.58 | 3.56 | 4.25 | 4.26 | — | |
| Elevance Health Inc. | 33.57 | 34.43 | 31.64 | 30.12 | — | |
| Intuitive Surgical Inc. | 1.75 | 1.97 | 2.53 | 2.93 | — | |
| Medtronic PLC | 4.53 | 4.72 | 5.06 | 4.84 | — | |
| UnitedHealth Group Inc. | 25.58 | 22.48 | 21.54 | 21.54 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 14.73 | 14.40 | 14.39 | 13.89 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 6.46 | 6.36 | 6.90 | 6.75 | — | |
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues from external customers ÷ Property and equipment (including operating lease, right-of-use asset)
= 246,148 ÷ 3,654 = 67.36
2 Click competitor name to see calculations.
An analysis of the asset utilization trends from 2020 through 2024 reveals a significant improvement in operational efficiency. The organization has achieved a dual trajectory of increasing revenue generation while simultaneously reducing its fixed asset base, resulting in a substantial rise in the net fixed asset turnover ratio.
- Revenue Growth Patterns
- Revenues from external customers exhibited consistent year-over-year growth, rising from US$ 159,157 million in 2020 to US$ 246,148 million in 2024. A particularly sharp acceleration is observed between 2023 and 2024, where revenues increased by over US$ 52 billion.
- Fixed Asset Trend
- Property and equipment, including operating lease right-of-use assets, showed a steady downward trend over the five-year period. The balance decreased from US$ 4,757 million in 2020 to US$ 3,654 million in 2024, suggesting a strategic shift toward a more asset-light operational model or the successful divestment of underperforming physical assets.
- Net Fixed Asset Turnover Efficiency
- The net fixed asset turnover ratio more than doubled during the period, moving from 33.46 in 2020 to 67.36 in 2024. This expansion indicates a heightened capacity to generate sales per unit of investment in fixed assets. The most significant efficiency gain occurred in the final year of the analysis, where the ratio jumped from 47.75 to 67.36, coinciding with the peak in revenue growth and the lowest recorded level of fixed assets.
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Total Asset Turnover
Cigna Group, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from external customers | 246,148) | 194,099) | 179,361) | 172,529) | 159,157) | |
| Total assets | 155,881) | 152,761) | 143,932) | 154,889) | 155,451) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.58 | 1.27 | 1.25 | 1.11 | 1.02 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.52 | 0.55 | 0.59 | 0.57 | — | |
| Elevance Health Inc. | 1.50 | 1.56 | 1.51 | 1.41 | — | |
| Intuitive Surgical Inc. | 0.45 | 0.46 | 0.48 | 0.42 | — | |
| Medtronic PLC | 0.36 | 0.34 | 0.35 | 0.32 | — | |
| UnitedHealth Group Inc. | 1.32 | 1.34 | 1.31 | 1.34 | — | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.08 | 1.10 | 1.06 | 1.02 | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.65 | 0.63 | 0.66 | 0.62 | — | |
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).
1 2024 Calculation
Total asset turnover = Revenues from external customers ÷ Total assets
= 246,148 ÷ 155,881 = 1.58
2 Click competitor name to see calculations.
A consistent upward trajectory in asset utilization efficiency is evident over the five-year period from 2020 to 2024. The total asset turnover ratio rose from 1.02 to 1.58, indicating that the organization is generating significantly more revenue per unit of asset employed.
- Revenue Growth Trends
- Revenues from external customers exhibited steady growth between 2020 and 2023, followed by a substantial acceleration in 2024. Total revenues increased from US$ 159,157 million in 2020 to US$ 246,148 million in 2024, representing a total increase of approximately 54.7% over the analyzed period.
- Asset Base Stability
- The total asset base remained relatively stable, fluctuating between a high of US$ 155,881 million in 2024 and a low of US$ 143,932 million in 2022. The relative constancy of the asset base suggests that the improvement in the turnover ratio is primarily driven by aggressive top-line growth rather than a reduction in the asset base.
- Total Asset Turnover Analysis
- The total asset turnover ratio improved incrementally each year, moving from 1.02 in 2020 to 1.27 in 2023, before experiencing a sharp increase to 1.58 in 2024. This progression reflects an enhanced operational capacity to leverage existing resources to drive higher sales volumes, culminating in a significant efficiency gain in the final year of the period.
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Equity Turnover
Cigna Group, equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from external customers | 246,148) | 194,099) | 179,361) | 172,529) | 159,157) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 6.00 | 4.20 | 4.00 | 3.66 | 3.16 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.88 | 1.04 | 1.19 | 1.20 | — | |
| Elevance Health Inc. | 4.24 | 4.33 | 4.29 | 3.80 | — | |
| Intuitive Surgical Inc. | 0.51 | 0.54 | 0.56 | 0.48 | — | |
| Medtronic PLC | 0.64 | 0.61 | 0.60 | 0.59 | — | |
| UnitedHealth Group Inc. | 4.26 | 4.14 | 4.14 | 3.98 | — | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 2.63 | 2.66 | 2.61 | 2.42 | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 1.78 | 1.69 | 1.69 | 1.67 | — | |
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).
1 2024 Calculation
Equity turnover = Revenues from external customers ÷ Shareholders’ equity
= 246,148 ÷ 41,033 = 6.00
2 Click competitor name to see calculations.
The financial trajectory from 2020 to 2024 indicates a significant increase in capital efficiency regarding the utilization of shareholders' equity to generate revenue. A consistent upward trend in top-line growth, paired with a general contraction of the equity base, has resulted in a substantial and accelerating rise in the equity turnover ratio.
- Revenue Growth Patterns
- Revenues from external customers demonstrated steady growth from 2020 to 2023, increasing from US$ 159,157 million to US$ 194,099 million. A notable acceleration occurred in 2024, where revenues rose sharply to US$ 246,148 million, signaling a strong expansion in business volume.
- Shareholders' Equity Trends
- The equity base experienced a general decline over the analyzed period, falling from US$ 50,321 million in 2020 to US$ 41,033 million in 2024. Despite a brief stabilization and slight increase in 2023, the overall trend reflects a reduction in total shareholders' equity.
- Equity Turnover Performance
- The equity turnover ratio improved systematically each year, rising from 3.16 in 2020 to 4.20 in 2023. The most significant increase took place in 2024, with the ratio reaching 6.00. This progression indicates that the organization is generating substantially higher revenue per dollar of equity, driven by the simultaneous increase in revenues and the decrease in the equity denominator.
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