Stock Analysis on Net
Stock Analysis on Net

Cigna Group (NYSE:CI)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Cigna Group, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 11.17% = 3.38% × 3.30
Sep 30, 2023 11.61% = 3.54% × 3.28
Jun 30, 2023 14.64% = 4.43% × 3.30
Mar 31, 2023 15.17% = 4.56% × 3.33
Dec 31, 2022 14.86% = 4.63% × 3.21
Sep 30, 2022 14.69% = 4.59% × 3.20
Jun 30, 2022 11.94% = 3.59% × 3.33
Mar 31, 2022 11.69% = 3.53% × 3.31
Dec 31, 2021 11.39% = 3.46% × 3.29
Sep 30, 2021 17.68% = 5.44% × 3.25
Jun 30, 2021 16.73% = 5.29% × 3.17
Mar 31, 2021 17.52% = 5.55% × 3.16
Dec 31, 2020 16.81% = 5.44% × 3.09
Sep 30, 2020 11.03% = 3.31% × 3.33
Jun 30, 2020 11.11% = 3.30% × 3.37
Mar 31, 2020 10.91% = 3.18% × 3.43
Dec 31, 2019 11.26% = 3.28% × 3.44
Sep 30, 2019 — = — × 3.46
Jun 30, 2019 — = — × 3.52
Mar 31, 2019 — = — × 3.64

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Cigna Group, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 11.17% = 2.66% × 1.27 × 3.30
Sep 30, 2023 11.61% = 2.81% × 1.26 × 3.28
Jun 30, 2023 14.64% = 3.59% × 1.23 × 3.30
Mar 31, 2023 15.17% = 3.71% × 1.23 × 3.33
Dec 31, 2022 14.86% = 3.72% × 1.25 × 3.21
Sep 30, 2022 14.69% = 3.69% × 1.24 × 3.20
Jun 30, 2022 11.94% = 3.08% × 1.17 × 3.33
Mar 31, 2022 11.69% = 3.07% × 1.15 × 3.31
Dec 31, 2021 11.39% = 3.11% × 1.11 × 3.29
Sep 30, 2021 17.68% = 4.97% × 1.09 × 3.25
Jun 30, 2021 16.73% = 4.93% × 1.07 × 3.17
Mar 31, 2021 17.52% = 5.22% × 1.06 × 3.16
Dec 31, 2020 16.81% = 5.31% × 1.02 × 3.09
Sep 30, 2020 11.03% = 3.40% × 0.97 × 3.33
Jun 30, 2020 11.11% = 3.43% × 0.96 × 3.37
Mar 31, 2020 10.91% = 3.22% × 0.99 × 3.43
Dec 31, 2019 11.26% = 3.35% × 0.98 × 3.44
Sep 30, 2019 — = — × — × 3.46
Jun 30, 2019 — = — × — × 3.52
Mar 31, 2019 — = — × — × 3.64

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Cigna Group, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 3.38% = 2.66% × 1.27
Sep 30, 2023 3.54% = 2.81% × 1.26
Jun 30, 2023 4.43% = 3.59% × 1.23
Mar 31, 2023 4.56% = 3.71% × 1.23
Dec 31, 2022 4.63% = 3.72% × 1.25
Sep 30, 2022 4.59% = 3.69% × 1.24
Jun 30, 2022 3.59% = 3.08% × 1.17
Mar 31, 2022 3.53% = 3.07% × 1.15
Dec 31, 2021 3.46% = 3.11% × 1.11
Sep 30, 2021 5.44% = 4.97% × 1.09
Jun 30, 2021 5.29% = 4.93% × 1.07
Mar 31, 2021 5.55% = 5.22% × 1.06
Dec 31, 2020 5.44% = 5.31% × 1.02
Sep 30, 2020 3.31% = 3.40% × 0.97
Jun 30, 2020 3.30% = 3.43% × 0.96
Mar 31, 2020 3.18% = 3.22% × 0.99
Dec 31, 2019 3.28% = 3.35% × 0.98
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.