Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cigna Group, liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.84 | 0.77 | 0.73 | 0.83 | 0.77 | |
| Quick ratio | 0.56 | 0.54 | 0.58 | 0.48 | 0.66 | |
| Cash ratio | 0.14 | 0.18 | 0.17 | 0.14 | 0.32 |
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).
- Current ratio
- The current ratio shows some fluctuation over the five-year period. It started at 0.77 at the end of 2020, increased moderately to 0.83 in 2021, declined to 0.73 in 2022, then rose again to 0.77 in 2023, and finally reached 0.84 in 2024. Overall, there is a slight upward trend towards improved short-term liquidity, suggesting a gradual strengthening in the company's ability to cover current liabilities with current assets.
- Quick ratio
- The quick ratio exhibits a more volatile pattern. It began at 0.66 in 2020, sharply decreased to 0.48 in 2021, partially recovered to 0.58 in 2022, then dropped slightly to 0.54 in 2023, and edged up marginally to 0.56 in 2024. This ratio remains below the starting point, indicating a less consistent position in more liquid assets excluding inventory, with some vulnerability in immediate liquidity.
- Cash ratio
- The cash ratio shows a downward trend over the analyzed timeframe. It started at 0.32 at the end of 2020, declined steeply to 0.14 in 2021, followed by a minor increase to 0.17 in 2022 and 0.18 in 2023, before falling again to 0.14 in 2024. This suggests a reduced proportion of cash and cash equivalents relative to current liabilities, pointing to constrained availability of the most liquid assets for meeting short-term obligations.
Current Ratio
Cigna Group, current ratio 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) | ||||||
| Current assets | 48,870) | 37,351) | 30,120) | 36,134) | 27,799) | |
| Current liabilities | 57,979) | 48,716) | 41,229) | 43,572) | 36,022) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.84 | 0.77 | 0.73 | 0.83 | 0.77 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.67 | 1.64 | 1.63 | 1.85 | 1.72 | |
| Elevance Health Inc. | 1.45 | 1.44 | 1.40 | 1.47 | 1.55 | |
| Intuitive Surgical Inc. | 4.07 | 4.76 | 4.40 | 5.08 | 6.86 | |
| Medtronic PLC | 2.03 | 2.39 | 1.86 | 2.65 | 2.13 | |
| UnitedHealth Group Inc. | 0.83 | 0.79 | 0.77 | 0.79 | 0.74 | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.15 | 1.15 | 1.13 | 1.22 | 1.19 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.21 | 1.23 | 1.23 | 1.31 | 1.30 | |
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
Current ratio = Current assets ÷ Current liabilities
= 48,870 ÷ 57,979 = 0.84
2 Click competitor name to see calculations.
- Current Assets
- Current assets demonstrated an overall increasing trend from 2020 to 2024. Starting at approximately $27.8 billion in 2020, the value rose markedly to about $36.1 billion in 2021, followed by a decline to $30.1 billion in 2022. Subsequently, current assets resumed growth, reaching $37.4 billion in 2023 and further increasing to roughly $48.9 billion in 2024. This pattern shows a recovery from the dip in 2022 and a strong expansion toward the end of the period.
- Current Liabilities
- Current liabilities followed a consistent upward trajectory throughout the period. From $36.0 billion in 2020, liabilities increased annually, reaching approximately $43.6 billion in 2021, $41.2 billion in 2022, $48.7 billion in 2023, and $58.0 billion in 2024. Despite a slight decrease in 2022 compared to 2021, the overall movement indicates growing short-term obligations.
- Current Ratio
- The current ratio fluctuated moderately, ranging between 0.73 and 0.84 over the five years. It started at 0.77 in 2020, increased slightly in 2021 to 0.83, decreased to 0.73 in 2022, then rose again to 0.77 in 2023 and reached 0.84 in 2024. These variations suggest variability in liquidity but generally indicate that the company's ability to cover its short-term liabilities with current assets remained below or slightly above 1, reflecting a moderate liquidity position.
Quick Ratio
Cigna Group, quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 7,550) | 7,822) | 5,924) | 5,081) | 10,182) | |
| Investments | 665) | 925) | 905) | 920) | 1,331) | |
| Accounts receivable, net | 24,227) | 17,722) | 17,218) | 15,071) | 12,191) | |
| Total quick assets | 32,442) | 26,469) | 24,047) | 21,072) | 23,704) | |
| Current liabilities | 57,979) | 48,716) | 41,229) | 43,572) | 36,022) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.56 | 0.54 | 0.58 | 0.48 | 0.66 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.05 | 1.00 | 1.06 | 1.28 | 1.14 | |
| Elevance Health Inc. | 1.32 | 1.30 | 1.27 | 1.33 | 1.42 | |
| Intuitive Surgical Inc. | 3.00 | 3.83 | 3.56 | 4.34 | 5.96 | |
| Medtronic PLC | 1.31 | 1.54 | 1.30 | 1.91 | 1.50 | |
| UnitedHealth Group Inc. | 0.75 | 0.73 | 0.70 | 0.72 | 0.68 | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.97 | 0.97 | 0.95 | 1.04 | 1.01 | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.88 | 0.90 | 0.93 | 1.00 | 0.99 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 32,442 ÷ 57,979 = 0.56
2 Click competitor name to see calculations.
- Total Quick Assets
- The value of total quick assets initially declined from 23,704 million US dollars in 2020 to 21,072 million US dollars in 2021. Subsequently, there was a consistent upward trend, reaching 24,047 million in 2022, 26,469 million in 2023, and 32,442 million in 2024. This indicates a recovery and expansion of highly liquid assets over the latter years.
- Current Liabilities
- Current liabilities showed a general increasing trend throughout the period. Starting at 36,022 million US dollars in 2020, liabilities rose sharply to 43,572 million in 2021. Although there was a slight decrease to 41,229 million in 2022, the value resumed growth in the following years, reaching 48,716 million in 2023 and 57,979 million in 2024. This reflects a growing short-term debt or obligations over time.
- Quick Ratio
- The quick ratio, which measures liquidity by comparing quick assets to current liabilities, declined markedly from 0.66 in 2020 to 0.48 in 2021, suggesting a deterioration in short-term financial health. A modest recovery was observed in 2022 to 0.58, followed by a slight decline to 0.54 in 2023 and a marginal improvement to 0.56 in 2024. Despite these fluctuations, the quick ratio remained below the initial 2020 level, indicating persistent pressure on immediate liquidity relative to liabilities.
- Overall Analysis
- The data indicates that while liquid assets have expanded substantially since 2021, current liabilities have increased at a comparable or faster pace, affecting the company's liquidity position. The quick ratio’s decrease and limited recovery suggest that, despite asset growth, the company faces ongoing challenges in maintaining a comfortable buffer of liquid assets against short-term obligations.
Cash Ratio
Cigna Group, cash ratio 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) | ||||||
| Cash and cash equivalents | 7,550) | 7,822) | 5,924) | 5,081) | 10,182) | |
| Investments | 665) | 925) | 905) | 920) | 1,331) | |
| Total cash assets | 8,215) | 8,747) | 6,829) | 6,001) | 11,513) | |
| Current liabilities | 57,979) | 48,716) | 41,229) | 43,572) | 36,022) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.14 | 0.18 | 0.17 | 0.14 | 0.32 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.56 | 0.53 | 0.66 | 0.78 | 0.60 | |
| Elevance Health Inc. | 0.85 | 0.87 | 0.86 | 0.95 | 1.04 | |
| Intuitive Surgical Inc. | 2.30 | 3.15 | 2.90 | 3.66 | 5.30 | |
| Medtronic PLC | 0.74 | 0.88 | 0.85 | 1.27 | 1.06 | |
| UnitedHealth Group Inc. | 0.28 | 0.34 | 0.36 | 0.36 | 0.33 | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.49 | 0.55 | 0.58 | 0.64 | 0.62 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.46 | 0.50 | 0.54 | 0.60 | 0.60 | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 8,215 ÷ 57,979 = 0.14
2 Click competitor name to see calculations.
The financial data reveals several key trends regarding liquidity and short-term financial obligations over the five-year period from 2020 to 2024.
- Total Cash Assets
- Total cash assets display a marked decline from 11,513 million US dollars at the end of 2020 to 6,001 million at the end of 2021, indicating a significant reduction in readily available cash within one year. This is followed by a partial recovery over the subsequent years, rising to 6,829 million in 2022 and further to 8,747 million in 2023. However, in 2024, there is another decline to 8,215 million dollars, which suggests a slight deterioration in cash holding after a period of improvement.
- Current Liabilities
- Current liabilities have shown a consistent upward trajectory throughout the period, rising from 36,022 million US dollars in 2020 to 57,979 million in 2024. This steady increase implies growing short-term obligations or payables, which could potentially put pressure on liquidity.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, declines sharply from 0.32 in 2020 to 0.14 in 2021. Following this, it experiences a modest increase to 0.17 in 2022 and 0.18 in 2023, reflecting some improvement in liquidity. Nonetheless, the ratio decreases again to 0.14 in 2024, representing a relatively low level of immediate liquidity relative to current liabilities by the end of the period.
Overall, despite some recovery in cash assets during the mid-period, the continuous rise in current liabilities and the low cash ratio indicate growing liquidity constraints. The company appears to face increased pressure in managing its short-term obligations with available cash, necessitating careful cash flow management going forward.