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).
The liquidity position is characterized by a consistent trend where current liabilities exceed current assets, as evidenced by all three liquidity ratios remaining below 1.0 throughout the period from 2020 to 2024. While there is evidence of marginal recovery in overall current liquidity, the more stringent measures of liquidity have remained depressed relative to 2020 levels.
- Current Ratio
- The current ratio demonstrated moderate volatility, starting at 0.77 in 2020 and ending at a five-year peak of 0.84 in 2024. A temporary decline to 0.73 was observed in 2022, followed by a two-year upward trajectory. This trend suggests a gradual improvement in the capacity to meet short-term obligations, although the ratio has not reached a parity level of 1.0.
- Quick Ratio
- A sharp decrease occurred in the quick ratio between 2020 (0.66) and 2021 (0.48). Following this initial drop, the ratio stabilized, fluctuating between 0.54 and 0.58 from 2022 through 2024. The consistent disparity between the current ratio and the quick ratio indicates that a portion of the current assets consists of less liquid components that cannot be immediately converted to cash.
- Cash Ratio
- The most significant contraction is observed in the cash ratio, which fell from 0.32 in 2020 to 0.14 in 2021. Despite a slight recovery to 0.18 by 2023, the ratio returned to 0.14 by the end of 2024. This pattern reveals a substantial reduction in immediate cash availability relative to current liabilities over the observed timeframe.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | |
| Elevance Health Inc. | 1.45 | 1.44 | 1.40 | 1.47 | — | |
| Intuitive Surgical Inc. | 4.07 | 4.76 | 4.40 | 5.08 | — | |
| Medtronic PLC | 2.03 | 2.39 | 1.86 | 2.65 | — | |
| UnitedHealth Group Inc. | 0.83 | 0.79 | 0.77 | 0.79 | — | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.15 | 1.15 | 1.13 | 1.22 | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.21 | 1.23 | 1.23 | 1.31 | — | |
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.
Analysis of the liquidity position reveals a consistent pattern where current liabilities exceed current assets throughout the five-year period from 2020 to 2024. While the current ratio remains below the 1.0 benchmark, a gradual recovery is observed following a low point in 2022.
- Current Assets Trend
- Current assets exhibited a non-linear upward trajectory, growing from US$ 27,799 million in 2020 to US$ 48,870 million by 2024. A temporary contraction occurred in 2022, where assets declined to US$ 30,120 million, before rebounding sharply in the subsequent two years.
- Current Liabilities Trend
- Current liabilities followed a similar growth pattern, increasing from US$ 36,022 million in 2020 to US$ 57,979 million in 2024. Aside from a marginal decrease in 2022, short-term obligations have expanded steadily, reflecting an increase in the organization's short-term financial obligations.
- Current Ratio Dynamics
- The current ratio fluctuated between a minimum of 0.73 in 2022 and a maximum of 0.84 in 2024. The trend indicates that the company operates with a liquidity position where short-term assets are insufficient to cover all current liabilities; however, the rise to 0.84 in 2024 represents the strongest liquidity position within the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | |
| Elevance Health Inc. | 1.32 | 1.30 | 1.27 | 1.33 | — | |
| Intuitive Surgical Inc. | 3.00 | 3.83 | 3.56 | 4.34 | — | |
| Medtronic PLC | 1.31 | 1.54 | 1.30 | 1.91 | — | |
| UnitedHealth Group Inc. | 0.75 | 0.73 | 0.70 | 0.72 | — | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.97 | 0.97 | 0.95 | 1.04 | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.88 | 0.90 | 0.93 | 1.00 | — | |
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.
The liquidity position between 2020 and 2024 is characterized by a persistent gap where current liabilities exceed total quick assets, resulting in a quick ratio that remains consistently below 1.00. While both quick assets and current liabilities have increased in absolute terms over the five-year period, the relationship between the two has shown moderate volatility before reaching a state of relative stabilization.
- Quick Assets Trend
- Total quick assets experienced an initial decline in 2021, falling to US$ 21,072 million. However, a sustained upward trajectory followed, with assets growing annually to reach US$ 32,442 million by December 31, 2024. This indicates a significant expansion of the most liquid asset base in the final three years of the analysis.
- Current Liabilities Trend
- Current liabilities have followed a general upward trend, increasing from US$ 36,022 million in 2020 to US$ 57,979 million in 2024. Aside from a slight contraction in 2022, short-term obligations have expanded substantially, growing at a pace that has largely mirrored the growth of quick assets.
- Quick Ratio Interpretation
- The quick ratio reached a peak of 0.66 in 2020 before dropping to a period low of 0.48 in 2021. A recovery to 0.58 occurred in 2022, followed by marginal fluctuations that resulted in a ratio of 0.56 by the end of 2024. The fact that the ratio remains consistently below 1.00 suggests that the organization does not maintain sufficient quick assets to cover all current liabilities immediately, indicating a reliance on other current assets or operational cash flows to meet short-term obligations.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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 | — | |
| Elevance Health Inc. | 0.85 | 0.87 | 0.86 | 0.95 | — | |
| Intuitive Surgical Inc. | 2.30 | 3.15 | 2.90 | 3.66 | — | |
| Medtronic PLC | 0.74 | 0.88 | 0.85 | 1.27 | — | |
| UnitedHealth Group Inc. | 0.28 | 0.34 | 0.36 | 0.36 | — | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.49 | 0.55 | 0.58 | 0.64 | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.46 | 0.50 | 0.54 | 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 analysis of the liquidity position from 2020 to 2024 reveals a general decline in the immediate ability to cover short-term obligations using only cash assets. While there was a period of moderate stabilization between 2022 and 2023, the most recent fiscal year indicates a renewed tightening of liquidity.
- Cash Asset Volatility
- Total cash assets experienced a significant contraction between 2020 and 2021, dropping from 11,513 million USD to 6,001 million USD. Although a recovery trend followed, with assets peaking at 8,747 million USD in 2023, this growth was reversed in 2024, ending at 8,215 million USD.
- Current Liability Expansion
- Short-term obligations have demonstrated a consistent upward trajectory over the five-year period. Current liabilities grew from 36,022 million USD in 2020 to 57,979 million USD in 2024. The most pronounced increase occurred in the final year, representing a substantial rise in the company's immediate financial commitments.
- Cash Ratio Trajectory
- The cash ratio decreased sharply from 0.32 in 2020 to 0.14 in 2021. A marginal improvement was observed in 2022 and 2023, where the ratio reached 0.17 and 0.18, respectively. However, the combination of slightly lower cash assets and significantly higher current liabilities in 2024 resulted in the ratio returning to 0.14, the lowest level recorded since 2021.
The divergence between expanding current liabilities and fluctuating cash reserves suggests an increasing reliance on non-cash current assets or external financing to meet short-term obligations. The return to a 0.14 cash ratio in 2024 highlights a diminished liquidity buffer compared to the baseline established in 2020.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?