Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cigna Group, liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
- Current Ratio Trends
- The current ratio demonstrates moderate fluctuations over the analyzed periods, with values mostly ranging between 0.7 and 0.86. Initially, there was a slight decline from 0.76 to 0.7 in the first three quarters of 2021, followed by a recovery reaching 0.83 by the end of that year. Throughout 2022 and into 2023, the ratio remained relatively stable around 0.72 to 0.77, with incremental improvements observed toward the end of the dataset, peaking at 0.86 in September 2024 before slightly decreasing to 0.84. This pattern suggests a generally stable liquidity position with a mild strengthening trend in recent quarters.
- Quick Ratio Trends
- The quick ratio displays more pronounced variability compared to the current ratio. It began at 0.64 in early 2021, declining gradually to its lowest at 0.48 by December 2021 and March 2022. Subsequently, there was a recovery to 0.61 by the third quarter of 2022, followed by a minor dip and then another period of stabilization around 0.58 to 0.61 through 2023. Toward mid to late 2024, the quick ratio fluctuated slightly downward, concluding at 0.56. Overall, the quick ratio indicates some volatility in the company’s ability to meet short-term obligations with liquid assets excluding inventory, though it remains above 0.5 throughout most periods.
- Cash Ratio Trends
- The cash ratio has been the most volatile among the liquidity measures. It started relatively low at 0.24 in the first quarter of 2021, declining to approximately 0.12-0.15 during 2021 and early 2022. A noticeable increase occurred in late 2022, reaching up to 0.22 in mid-2023, followed by a gradual decline and fluctuations between 0.12 and 0.18 toward the end of the observed timeline. This indicates varying levels of cash and cash equivalents as a proportion of current liabilities, reflecting changes in cash management or operational cash flows. Despite fluctuations, the cash ratio remains below 0.25, suggesting limited coverage of current liabilities by cash alone.
- Overall Liquidity Analysis
- Across all three ratios, the data reflect a generally consistent but cautiously moderate liquidity position. While the current ratio shows an improving trend, the quick and cash ratios exhibit more variability, indicating fluctuating access to the most liquid assets. The company's liquidity is sufficient but does not suggest excess cash or liquid assets relative to liabilities, which could imply a focus on optimizing working capital rather than maintaining high liquidity buffers.
Current Ratio
Cigna Group, current ratio calculation (quarterly data)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 48,870) | 49,222) | 46,215) | 43,357) | 37,351) | 34,518) | 34,711) | 32,027) | 30,120) | 30,170) | 37,422) | 35,393) | 36,134) | 25,487) | 25,011) | 25,554) | |||||
| Current liabilities | 57,979) | 57,060) | 55,373) | 51,977) | 48,716) | 47,059) | 47,345) | 44,727) | 41,229) | 41,115) | 45,218) | 43,662) | 43,572) | 36,340) | 34,711) | 33,470) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 0.84 | 0.86 | 0.83 | 0.83 | 0.77 | 0.73 | 0.73 | 0.72 | 0.73 | 0.73 | 0.83 | 0.81 | 0.83 | 0.70 | 0.72 | 0.76 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 1.67 | 1.60 | 1.68 | 1.60 | 1.64 | 1.74 | 1.64 | 1.68 | 1.63 | 1.86 | 2.01 | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | |||||
| Elevance Health Inc. | 1.45 | 1.50 | 1.49 | 1.37 | 1.44 | 1.41 | 1.44 | 1.43 | 1.40 | 1.35 | 1.36 | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | |||||
| Intuitive Surgical Inc. | 4.07 | 4.30 | 5.15 | 5.55 | 4.76 | 5.31 | 5.22 | 5.26 | 4.40 | 5.10 | 5.36 | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | |||||
| Medtronic PLC | 2.03 | 2.30 | 2.29 | 2.42 | 2.39 | 1.76 | 1.76 | 1.58 | 1.86 | 2.61 | 2.91 | 2.89 | 2.65 | 2.10 | 2.16 | 1.87 | |||||
| UnitedHealth Group Inc. | 0.83 | 0.91 | 0.88 | 0.85 | 0.79 | 0.80 | 0.80 | 0.81 | 0.77 | 0.82 | 0.77 | 0.78 | 0.79 | 0.77 | 0.77 | 0.74 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 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 show a general upward trend over the observed periods. Starting around 25,554 million USD at the first quarter of 2021, the value increased significantly in the fourth quarter of 2021, peaking at 36,134 million USD. After some fluctuation in 2022, the asset levels progressively rose through 2023 and into 2024, reaching a peak of approximately 49,222 million USD in the third quarter of 2024 before slightly declining to 48,870 million USD at the end of that year.
- Current Liabilities
- Current liabilities have also increased consistently over time, beginning at 33,470 million USD in early 2021 and reaching 43,572 million USD by the end of the same year. The upward trajectory continued steadily through 2022 and 2023, culminating close to 57,979 million USD by the final quarter of 2024. The growth in current liabilities appears more pronounced and steady compared to the fluctuations observed in current assets.
- Current Ratio
- The current ratio has fluctuated between 0.70 and 0.86, indicating that current liabilities consistently exceed current assets over the entire period. The ratio dropped to its lowest point around 0.70 during the third quarter of 2021. It improved notably in the fourth quarter of 2021 and generally stabilized between 0.72 and 0.83 thereafter. Recent quarters in 2024 show an improvement, peaking at 0.86 in the third quarter, indicating a slightly better liquidity position relative to previous years, although still below the ideal benchmark of 1.
- Summary Insights
- While both current assets and liabilities have increased significantly over the four-year span, current liabilities have grown at a faster and more consistent pace, resulting in a persistently low current ratio below 1. This suggests a structural liquidity pressure, where short-term obligations exceed short-term resources. However, the slight recent improvement in the current ratio during 2024 may indicate efforts or trends toward enhancing liquidity. The data highlights the importance of continued monitoring of working capital management to ensure adequate coverage of short-term liabilities.
Quick Ratio
Cigna Group, quick ratio calculation (quarterly data)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 7,550) | 5,888) | 6,788) | 8,439) | 7,822) | 8,497) | 9,585) | 7,935) | 5,924) | 7,079) | 4,421) | 4,424) | 5,081) | 3,483) | 3,821) | 6,505) | |||||
| Investments | 665) | 864) | 1,068) | 1,108) | 925) | 1,046) | 872) | 914) | 905) | 783) | 754) | 731) | 920) | 1,374) | 1,305) | 1,477) | |||||
| Accounts receivable, net | 24,227) | 27,846) | 25,111) | 20,563) | 17,722) | 19,083) | 18,333) | 17,704) | 17,218) | 17,275) | 18,290) | 16,003) | 15,071) | 16,250) | 15,462) | 13,588) | |||||
| Total quick assets | 32,442) | 34,598) | 32,967) | 30,110) | 26,469) | 28,626) | 28,790) | 26,553) | 24,047) | 25,137) | 23,465) | 21,158) | 21,072) | 21,107) | 20,588) | 21,570) | |||||
| Current liabilities | 57,979) | 57,060) | 55,373) | 51,977) | 48,716) | 47,059) | 47,345) | 44,727) | 41,229) | 41,115) | 45,218) | 43,662) | 43,572) | 36,340) | 34,711) | 33,470) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.56 | 0.61 | 0.60 | 0.58 | 0.54 | 0.61 | 0.61 | 0.59 | 0.58 | 0.61 | 0.52 | 0.48 | 0.48 | 0.58 | 0.59 | 0.64 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 1.05 | 1.00 | 1.02 | 0.95 | 1.00 | 1.04 | 1.00 | 1.07 | 1.06 | 1.22 | 1.33 | 1.21 | 1.28 | 1.25 | 1.19 | 1.16 | |||||
| Elevance Health Inc. | 1.32 | 1.34 | 1.32 | 1.23 | 1.30 | 1.29 | 1.32 | 1.31 | 1.27 | 1.21 | 1.22 | 1.23 | 1.33 | 1.33 | 1.35 | 1.43 | |||||
| Intuitive Surgical Inc. | 3.00 | 3.21 | 3.94 | 4.31 | 3.83 | 4.44 | 4.36 | 4.30 | 3.56 | 4.19 | 4.49 | 4.40 | 4.34 | 4.66 | 5.12 | 5.76 | |||||
| Medtronic PLC | 1.31 | 1.46 | 1.42 | 1.51 | 1.54 | 1.18 | 1.18 | 1.01 | 1.30 | 1.87 | 2.07 | 2.06 | 1.91 | 1.58 | 1.63 | 1.37 | |||||
| UnitedHealth Group Inc. | 0.75 | 0.83 | 0.81 | 0.79 | 0.73 | 0.75 | 0.74 | 0.75 | 0.70 | 0.77 | 0.71 | 0.72 | 0.72 | 0.71 | 0.71 | 0.68 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 32,442 ÷ 57,979 = 0.56
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity metrics over the observed periods.
- Total Quick Assets
- Total quick assets exhibit a generally increasing trend from the beginning of the period to the end. Starting at 21,570 million USD, these assets experienced some fluctuations but rose to a peak of 34,598 million USD by the third quarter of 2024 before slightly declining in the last quarter to 32,442 million USD. This indicates an overall strengthening in the company's immediately available liquid assets over the four-year period.
- Current Liabilities
- Current liabilities also show an upward trajectory throughout the period. Beginning at 33,470 million USD, current liabilities increased consistently each quarter, reaching 57,979 million USD by the final quarter. The steady growth in liabilities suggests increasing short-term obligations that the company must manage alongside its assets.
- Quick Ratio
- The quick ratio, which measures the company's short-term liquidity position, remained below 1.0 throughout the timeframe, indicating that quick assets were consistently less than current liabilities. The ratio commenced at 0.64 in early 2021, declined to a low of 0.48 in late 2021 and early 2022, and then showed partial recovery to mid-0.6 levels by late 2023. There was some volatility thereafter, with a slight decrease to 0.56 by the end of 2024. This pattern reflects periods where liquidity constraints may have been more pronounced, albeit with efforts to improve the short-term financial position.
In summary, while quick assets have increased substantially over the observed period, current liabilities have increased at a faster rate, resulting in a quick ratio consistently below 1.0. The company’s liquidity, as measured by this ratio, has demonstrated variability, with phases of deterioration and subsequent improvement, but it remains under 1, suggesting a need for cautious monitoring and management of liquid resources relative to short-term claims.
Cash Ratio
Cigna Group, cash ratio calculation (quarterly data)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 7,550) | 5,888) | 6,788) | 8,439) | 7,822) | 8,497) | 9,585) | 7,935) | 5,924) | 7,079) | 4,421) | 4,424) | 5,081) | 3,483) | 3,821) | 6,505) | |||||
| Investments | 665) | 864) | 1,068) | 1,108) | 925) | 1,046) | 872) | 914) | 905) | 783) | 754) | 731) | 920) | 1,374) | 1,305) | 1,477) | |||||
| Total cash assets | 8,215) | 6,752) | 7,856) | 9,547) | 8,747) | 9,543) | 10,457) | 8,849) | 6,829) | 7,862) | 5,175) | 5,155) | 6,001) | 4,857) | 5,126) | 7,982) | |||||
| Current liabilities | 57,979) | 57,060) | 55,373) | 51,977) | 48,716) | 47,059) | 47,345) | 44,727) | 41,229) | 41,115) | 45,218) | 43,662) | 43,572) | 36,340) | 34,711) | 33,470) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.14 | 0.12 | 0.14 | 0.18 | 0.18 | 0.20 | 0.22 | 0.20 | 0.17 | 0.19 | 0.11 | 0.12 | 0.14 | 0.13 | 0.15 | 0.24 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | 0.56 | 0.52 | 0.52 | 0.47 | 0.53 | 0.54 | 0.57 | 0.66 | 0.66 | 0.74 | 0.75 | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | |||||
| Elevance Health Inc. | 0.85 | 0.90 | 0.86 | 0.82 | 0.87 | 0.90 | 0.92 | 0.91 | 0.86 | 0.87 | 0.86 | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | |||||
| Intuitive Surgical Inc. | 2.30 | 2.52 | 3.20 | 3.49 | 3.15 | 3.86 | 3.77 | 3.59 | 2.90 | 3.50 | 3.78 | 3.58 | 3.66 | 3.98 | 4.42 | 5.04 | |||||
| Medtronic PLC | 0.74 | 0.85 | 0.80 | 0.87 | 0.88 | 0.77 | 0.79 | 0.63 | 0.85 | 1.26 | 1.37 | 1.36 | 1.27 | 1.17 | 1.18 | 0.99 | |||||
| UnitedHealth Group Inc. | 0.28 | 0.37 | 0.33 | 0.35 | 0.34 | 0.42 | 0.44 | 0.43 | 0.36 | 0.46 | 0.36 | 0.37 | 0.36 | 0.35 | 0.35 | 0.33 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,215 ÷ 57,979 = 0.14
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets exhibit significant fluctuations over the observed periods. Initially, cash assets decreased sharply from approximately 7,982 million USD to a low near 4,857 million USD in the third quarter of 2021. This was followed by a modest recovery towards the end of 2021 and a similar dip in mid-2022. The latter half of the timeline features another upward trend, peaking at around 10,457 million USD in the second quarter of 2023. Subsequently, cash assets decline again but remain above levels seen in mid-2021, showing a cyclical pattern with periods of accumulation and reduction.
- Current Liabilities Trend
- Current liabilities have generally increased steadily throughout the entire timeframe. Starting from approximately 33,470 million USD in the first quarter of 2021, liabilities rose continuously, reaching nearly 57,979 million USD by the end of 2024. This consistent growth suggests rising short-term obligations or payables, which may impact liquidity management and financial stability.
- Cash Ratio Analysis
- The cash ratio, which indicates the company’s ability to cover current liabilities with cash and cash equivalents, moved largely in a narrow range between 0.11 and 0.24. It started relatively higher (0.24) in early 2021 but dropped to a low of 0.11 in mid-2022, coinciding with the dip in cash assets and the rise in liabilities. Although some improvement is noted later, it never returns to the initial peak, maintaining a moderate level around 0.14 to 0.20 in recent periods. This suggests the company holds a cautious liquidity buffer relative to its short-term liabilities, which may imply conservative cash management amid growing obligations.
- Overall Insights
- The data indicates a company experiencing increasing short-term liabilities alongside volatile cash holdings. The rising current liabilities may exert pressure on working capital and liquidity, while fluctuating cash assets reflect active cash management possibly responding to operational or investment needs. The relatively stable, though generally low, cash ratio underscores a balanced but cautious approach to immediate liquidity coverage. Monitoring these trends will be important for assessing financial flexibility and short-term risk exposure going forward.