Stock Analysis on Net

Cigna Group (NYSE:CI)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Cigna Group, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 44,259 45,811 46,045 44,648 4,602
Customer relationships 29,978 29,974 29,997 29,432 31,184
Trade Name - Express Scripts 8,400 8,400 8,400 8,400 8,400
Other 317 348 447 475 383
Other intangible assets, cost 38,695 38,722 38,844 38,307 39,967
Accumulated amortization (7,755) (6,230) (4,620) (3,128) (3,405)
Other intangible assets, net carrying value 30,940 32,492 34,224 35,179 36,562
Goodwill and other intangibles 75,199 78,303 80,269 79,827 41,164

Based on: 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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Cigna Group goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets, net carrying value Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Cigna Group other intangible assets, net carrying value decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangibles Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Cigna Group goodwill and other intangibles decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Cigna Group, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 152,761 143,932 154,889 155,451 155,774
Less: Goodwill 44,259 45,811 46,045 44,648 4,602
Total assets (adjusted) 108,502 98,121 108,844 110,803 151,172
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 46,223 44,872 47,112 50,321 45,338
Less: Goodwill 44,259 45,811 46,045 44,648 4,602
Shareholders’ equity (adjusted) 1,964 (939) 1,067 5,673 40,736

Based on: 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).


Cigna Group, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Cigna Group, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 1.27 1.25 1.11 1.02 0.98
Adjusted total asset turnover 1.79 1.83 1.59 1.44 1.01
Financial Leverage
Reported financial leverage 3.30 3.21 3.29 3.09 3.44
Adjusted financial leverage 55.25 102.01 19.53 3.71
Return on Equity (ROE)
Reported ROE 11.17% 14.86% 11.39% 16.81% 11.26%
Adjusted ROE 262.93% 502.81% 149.09% 12.53%
Return on Assets (ROA)
Reported ROA 3.38% 4.63% 3.46% 5.44% 3.28%
Adjusted ROA 4.76% 6.80% 4.93% 7.63% 3.38%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cigna Group adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Cigna Group adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Cigna Group, Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues from external customers 194,099 179,361 172,529 159,157 152,176
Total assets 152,761 143,932 154,889 155,451 155,774
Activity Ratio
Total asset turnover1 1.27 1.25 1.11 1.02 0.98
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues from external customers 194,099 179,361 172,529 159,157 152,176
Adjusted total assets 108,502 98,121 108,844 110,803 151,172
Activity Ratio
Adjusted total asset turnover2 1.79 1.83 1.59 1.44 1.01

Based on: 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).

2023 Calculations

1 Total asset turnover = Revenues from external customers ÷ Total assets
= 194,099 ÷ 152,761 = 1.27

2 Adjusted total asset turnover = Revenues from external customers ÷ Adjusted total assets
= 194,099 ÷ 108,502 = 1.79

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cigna Group adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 152,761 143,932 154,889 155,451 155,774
Shareholders’ equity 46,223 44,872 47,112 50,321 45,338
Solvency Ratio
Financial leverage1 3.30 3.21 3.29 3.09 3.44
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 108,502 98,121 108,844 110,803 151,172
Adjusted shareholders’ equity 1,964 (939) 1,067 5,673 40,736
Solvency Ratio
Adjusted financial leverage2 55.25 102.01 19.53 3.71

Based on: 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).

2023 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 152,761 ÷ 46,223 = 3.30

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 108,502 ÷ 1,964 = 55.25


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,164 6,668 5,365 8,458 5,104
Shareholders’ equity 46,223 44,872 47,112 50,321 45,338
Profitability Ratio
ROE1 11.17% 14.86% 11.39% 16.81% 11.26%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,164 6,668 5,365 8,458 5,104
Adjusted shareholders’ equity 1,964 (939) 1,067 5,673 40,736
Profitability Ratio
Adjusted ROE2 262.93% 502.81% 149.09% 12.53%

Based on: 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).

2023 Calculations

1 ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 5,164 ÷ 46,223 = 11.17%

2 Adjusted ROE = 100 × Shareholders’ net income ÷ Adjusted shareholders’ equity
= 100 × 5,164 ÷ 1,964 = 262.93%


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,164 6,668 5,365 8,458 5,104
Total assets 152,761 143,932 154,889 155,451 155,774
Profitability Ratio
ROA1 3.38% 4.63% 3.46% 5.44% 3.28%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Shareholders’ net income 5,164 6,668 5,365 8,458 5,104
Adjusted total assets 108,502 98,121 108,844 110,803 151,172
Profitability Ratio
Adjusted ROA2 4.76% 6.80% 4.93% 7.63% 3.38%

Based on: 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).

2023 Calculations

1 ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 5,164 ÷ 152,761 = 3.38%

2 Adjusted ROA = 100 × Shareholders’ net income ÷ Adjusted total assets
= 100 × 5,164 ÷ 108,502 = 4.76%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Cigna Group adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.