Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Cigna Group, solvency ratios
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).
An examination of the solvency profile from 2020 to 2024 reveals a general increase in leverage and a corresponding decline in debt service coverage capacity. While asset-based ratios remained relatively stable throughout the period, the escalation in financial leverage and debt-to-equity ratios toward the end of the period indicates a shift in the capital structure toward a higher proportion of debt.
- Leverage and Capital Structure
- The debt to equity ratio exhibited a general upward trend, rising from 0.65 in 2020 to 0.78 in 2024. This trend is mirrored in the financial leverage ratio, which increased from 3.09 to 3.80 over the five-year period, with the most significant increase occurring between 2023 and 2024. Debt to capital ratios remained more stable but followed a similar upward trajectory, ending at 0.44 in 2024 compared to 0.40 in 2020.
- Asset-Based Solvency
- Debt to assets ratios demonstrated minimal volatility, fluctuating within a narrow range between 0.20 and 0.22. This stability suggests that the increase in total debt has been largely offset by a proportional increase in total assets, maintaining a consistent debt-to-asset relationship over time.
- Debt Service Coverage
- A pronounced downward trend is observed in the ability to cover fixed financial obligations. The interest coverage ratio declined from a high of 8.76 in 2020 to 4.51 in 2024. Similarly, the fixed charge coverage ratio fell from 7.84 in 2020 to 4.51 in 2024. This consistent reduction indicates a weakening margin of safety regarding the company's capacity to meet interest and fixed charge payments from current earnings.
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Debt to Equity
Cigna Group, debt to equity 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) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.78 | 0.67 | 0.69 | 0.71 | 0.65 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.30 | 0.38 | 0.46 | 0.50 | — | |
| Elevance Health Inc. | 0.76 | 0.64 | 0.66 | 0.64 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.50 | 0.47 | 0.46 | 0.51 | — | |
| UnitedHealth Group Inc. | 0.83 | 0.70 | 0.74 | 0.64 | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.59 | 0.55 | 0.57 | 0.55 | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.87 | 0.82 | 0.72 | 0.80 | — | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 31,972 ÷ 41,033 = 0.78
2 Click competitor name to see calculations.
The solvency profile of the organization over the five-year period ending December 31, 2024, is characterized by relatively stable total debt levels contrasted with a general decline in shareholders' equity. This divergence has led to a gradual increase in financial leverage, culminating in the highest debt-to-equity ratio of the period in the final year.
- Total Debt Trends
- Total debt exhibited minor fluctuations between 2020 and 2024. After a slight increase to 33,670 million US$ in 2021, debt levels decreased to a low of 30,930 million US$ by 2023. A modest uptick occurred in 2024, with total debt closing at 31,972 million US$. The overall variance in debt suggests a consistent approach to borrowing without significant expansion or aggressive deleveraging.
- Shareholders' Equity Trends
- A downward trajectory is observed in shareholders' equity, which decreased from 50,321 million US$ in 2020 to 41,033 million US$ in 2024. While a brief recovery was noted in 2023, reaching 46,223 million US$, a significant contraction occurred in 2024, resulting in the lowest equity level recorded within the five-year window.
- Debt to Equity Ratio Interpretation
- The debt-to-equity ratio shifted from 0.65 in 2020 to 0.78 in 2024. The ratio remained relatively stable between 0.67 and 0.71 from 2021 through 2023. However, the increase to 0.78 in 2024 indicates a rise in leverage. Because total debt only increased marginally in the final year, the spike in the ratio is primarily attributable to the contraction of the equity base rather than an increase in borrowed capital.
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Debt to Equity (including Operating Lease Liability)
Cigna Group, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | —) | 105) | 114) | 159) | 152) | |
| Operating lease liabilities (included in Other non-current liabilities) | —) | 340) | 346) | 436) | 491) | |
| Total debt (including operating lease liability) | 31,972) | 31,375) | 31,553) | 34,265) | 33,562) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.78 | 0.68 | 0.70 | 0.73 | 0.67 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.32 | 0.41 | 0.49 | 0.54 | — | |
| Elevance Health Inc. | 0.78 | 0.66 | 0.69 | 0.67 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.52 | 0.49 | 0.48 | 0.53 | — | |
| UnitedHealth Group Inc. | 0.88 | 0.76 | 0.80 | 0.70 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.63 | 0.58 | 0.61 | 0.58 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 0.85 | 0.76 | 0.83 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 31,972 ÷ 41,033 = 0.78
2 Click competitor name to see calculations.
The solvency profile from 2020 to 2024 demonstrates a general increase in financial leverage, primarily driven by a contraction in the equity base rather than an expansion of total liabilities. While absolute debt levels remained relatively stable over the five-year period, a downward trajectory in shareholders' equity has resulted in a higher debt-to-equity ratio by the end of 2024.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited minimal volatility, peaking at 34,265 million US$ in 2021 before trending slightly downward. From 2022 to 2024, the balance stabilized between 31,375 million US$ and 31,972 million US$, indicating a consistent approach to debt maintenance and the absence of significant new borrowing.
- Shareholders' Equity Trajectory
- A notable downward trend is observed in shareholders' equity, which decreased from 50,321 million US$ in 2020 to 41,033 million US$ in 2024. Although a slight recovery occurred in 2023, the overall decline represents a reduction in the equity cushion available to absorb losses or support future growth.
- Debt to Equity Ratio Analysis
- The debt to equity ratio fluctuated within a range of 0.67 to 0.78. After an initial increase in 2021, the ratio remained relatively stable through 2023, moving between 0.68 and 0.73. A significant spike to 0.78 occurred in 2024; this increase is directly attributable to the substantial decline in shareholders' equity during that year, marking the highest relative leverage point in the analyzed period.
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Debt to Capital
Cigna Group, debt to capital 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) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Total capital | 73,005) | 77,153) | 75,965) | 80,782) | 83,240) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.44 | 0.40 | 0.41 | 0.42 | 0.40 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.23 | 0.28 | 0.31 | 0.34 | — | |
| Elevance Health Inc. | 0.43 | 0.39 | 0.40 | 0.39 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.33 | 0.32 | 0.31 | 0.34 | — | |
| UnitedHealth Group Inc. | 0.45 | 0.41 | 0.43 | 0.39 | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.37 | 0.35 | 0.36 | 0.35 | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.47 | 0.45 | 0.42 | 0.44 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 31,972 ÷ 73,005 = 0.44
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability followed by a shift in the capital structure toward the end of the observed period. While total debt levels fluctuated within a narrow range, the overall capital base experienced a consistent decline, resulting in a higher leverage position by the conclusion of 2024.
- Total Debt Trends
- Debt levels remained relatively consistent over the five-year period, peaking at US$ 33,670 million in 2021 before decreasing to a low of US$ 30,930 million in 2023. A modest increase occurred in 2024, with total debt rising to US$ 31,972 million. This suggests a stable borrowing strategy with minimal volatility in nominal debt obligations.
- Total Capital Trajectory
- A general downward trend is observed in total capital, which declined from US$ 83,240 million in 2020 to US$ 73,005 million in 2024. This reduction in the total capital base indicates a contraction in the overall funding structure over the analyzed timeframe.
- Debt to Capital Ratio Analysis
- The debt to capital ratio remained stable, fluctuating between 0.40 and 0.42 from 2020 through 2023. However, a notable increase to 0.44 was recorded in 2024. This upward movement is driven by the convergence of a decreasing capital base and a marginal increase in total debt, indicating that debt now constitutes a larger proportion of the total capital structure than in previous years.
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Debt to Capital (including Operating Lease Liability)
Cigna Group, debt to capital (including operating lease liability) 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) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | —) | 105) | 114) | 159) | 152) | |
| Operating lease liabilities (included in Other non-current liabilities) | —) | 340) | 346) | 436) | 491) | |
| Total debt (including operating lease liability) | 31,972) | 31,375) | 31,553) | 34,265) | 33,562) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Total capital (including operating lease liability) | 73,005) | 77,598) | 76,425) | 81,377) | 83,883) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.44 | 0.40 | 0.41 | 0.42 | 0.40 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.29 | 0.33 | 0.35 | — | |
| Elevance Health Inc. | 0.44 | 0.40 | 0.41 | 0.40 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.34 | 0.33 | 0.32 | 0.35 | — | |
| UnitedHealth Group Inc. | 0.47 | 0.43 | 0.45 | 0.41 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.37 | 0.38 | 0.37 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.46 | 0.43 | 0.45 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 31,972 ÷ 73,005 = 0.44
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability followed by a recent increase in leverage. While total debt levels have remained comparatively consistent over the five-year period, a persistent decline in total capital has influenced the overall debt-to-capital ratio.
- Total Debt (Including Operating Lease Liability)
- Debt levels showed a slight increase from 33,562 million US$ in 2020 to a peak of 34,265 million US$ in 2021. This was followed by a reduction to 31,553 million US$ in 2022 and 31,375 million US$ in 2023. A modest upward movement occurred by December 31, 2024, with the balance ending at 31,972 million US$.
- Total Capital (Including Operating Lease Liability)
- A general downward trajectory is observed in total capital, which decreased from 83,883 million US$ in 2020 to 73,005 million US$ in 2024. Aside from a marginal recovery in 2023 to 77,598 million US$, the overall trend reflects a contraction in the capital base over the analyzed period.
- Debt to Capital Ratio
- The ratio fluctuated narrowly between 0.40 and 0.42 from 2020 through 2023, indicating a stable balance between debt and total capital. However, a distinct increase to 0.44 was recorded in 2024, marking the highest leverage point within the period. This peak is primarily attributable to the contraction of total capital rather than a substantial increase in total debt obligations.
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Debt to Assets
Cigna Group, debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Total assets | 155,881) | 152,761) | 143,932) | 154,889) | 155,451) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.21 | 0.20 | 0.22 | 0.22 | 0.21 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.17 | 0.20 | 0.23 | 0.24 | — | |
| Elevance Health Inc. | 0.27 | 0.23 | 0.23 | 0.24 | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Medtronic PLC | 0.28 | 0.27 | 0.27 | 0.28 | — | |
| UnitedHealth Group Inc. | 0.26 | 0.23 | 0.23 | 0.22 | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.24 | 0.23 | 0.23 | 0.23 | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.30 | 0.28 | 0.30 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 31,972 ÷ 155,881 = 0.21
2 Click competitor name to see calculations.
The solvency profile from 2020 to 2024 is characterized by high stability in the capital structure, despite fluctuations in the absolute values of assets and liabilities.
- Total Debt Trends
- Total debt exhibited a slight increase from 32,919 million USD in 2020 to a peak of 33,670 million USD in 2021. This was followed by a period of reduction, reaching a five-year low of 30,930 million USD by December 31, 2023, before concluding 2024 at 31,972 million USD.
- Total Asset Fluctuations
- Total assets remained relatively stable between 2020 and 2021, followed by a notable contraction to 143,932 million USD in 2022. A subsequent recovery trend is evident, with assets rising to 152,761 million USD in 2023 and returning to 155,881 million USD by the end of 2024, effectively restoring the asset base to 2020 levels.
- Debt to Assets Ratio Analysis
- The debt to assets ratio remained highly consistent throughout the observed period, fluctuating narrowly between 0.20 and 0.22. The ratio peaked at 0.22 in 2021 and 2022, coinciding with the period of asset contraction, and reached its lowest point of 0.20 in 2023. By 2024, the ratio stabilized at 0.21.
The consistency of the debt to assets ratio indicates a disciplined approach to solvency management. The balance between debt obligations and the asset base has been maintained such that debt consistently represents approximately 20% to 22% of total assets, regardless of periodic volatility in asset valuation.
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Debt to Assets (including Operating Lease Liability)
Cigna Group, debt to assets (including operating lease liability) 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) | ||||||
| Short-term debt | 3,035) | 2,775) | 2,993) | 2,545) | 3,374) | |
| Long-term debt | 28,937) | 28,155) | 28,100) | 31,125) | 29,545) | |
| Total debt | 31,972) | 30,930) | 31,093) | 33,670) | 32,919) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | —) | 105) | 114) | 159) | 152) | |
| Operating lease liabilities (included in Other non-current liabilities) | —) | 340) | 346) | 436) | 491) | |
| Total debt (including operating lease liability) | 31,972) | 31,375) | 31,553) | 34,265) | 33,562) | |
| Total assets | 155,881) | 152,761) | 143,932) | 154,889) | 155,451) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.19 | 0.22 | 0.24 | 0.26 | — | |
| Elevance Health Inc. | 0.27 | 0.24 | 0.24 | 0.25 | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | — | |
| Medtronic PLC | 0.29 | 0.28 | 0.27 | 0.29 | — | |
| UnitedHealth Group Inc. | 0.27 | 0.25 | 0.25 | 0.24 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.26 | 0.24 | 0.25 | 0.25 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | 0.32 | 0.29 | 0.31 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 31,972 ÷ 155,881 = 0.21
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a high degree of stability over the five-year period ending December 31, 2024. The relationship between total debt and total assets remained remarkably consistent, indicating a disciplined approach to leverage and capital structure management.
- Total Debt Trends
- Total debt, including operating lease liabilities, peaked in 2021 at 34,265 million USD. A subsequent reduction occurred in 2022, bringing the balance down to 31,553 million USD. Debt levels remained relatively flat through 2023 and 2024, closing the period at 31,972 million USD. This suggests an overall stabilization of liabilities following the 2021 peak.
- Total Asset Volatility and Recovery
- Total assets experienced a notable dip in 2022, decreasing to 143,932 million USD from 154,889 million USD in 2021. However, a steady recovery trend followed in the subsequent two years, with assets rising to 152,761 million USD in 2023 and reaching 155,881 million USD by the end of 2024. The final asset balance slightly exceeds the level recorded at the start of the analysis period in 2020.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio remained unchanged at 0.22 from 2020 through 2022, demonstrating that debt reductions and asset fluctuations were proportional during this window. A marginal improvement is observed in 2023 and 2024, with the ratio decreasing to 0.21. This slight downward trend reflects a marginal increase in the asset base relative to total debt, enhancing the overall solvency position.
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Financial Leverage
Cigna Group, financial leverage 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) | ||||||
| Total assets | 155,881) | 152,761) | 143,932) | 154,889) | 155,451) | |
| Shareholders’ equity | 41,033) | 46,223) | 44,872) | 47,112) | 50,321) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.80 | 3.30 | 3.21 | 3.29 | 3.09 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 1.71 | 1.90 | 2.03 | 2.10 | — | |
| Elevance Health Inc. | 2.83 | 2.77 | 2.83 | 2.70 | — | |
| Intuitive Surgical Inc. | 1.14 | 1.16 | 1.17 | 1.14 | — | |
| Medtronic PLC | 1.79 | 1.77 | 1.73 | 1.81 | — | |
| UnitedHealth Group Inc. | 3.22 | 3.08 | 3.16 | 2.96 | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.44 | 2.43 | 2.46 | 2.37 | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.75 | 2.70 | 2.57 | 2.69 | — | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 155,881 ÷ 41,033 = 3.80
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a progressive increase in financial leverage from 2020 to 2024. While total assets experienced moderate volatility and eventually returned to their 2020 levels, shareholders' equity exhibited a general downward trajectory, resulting in a higher reliance on liabilities to support the asset base.
- Total Assets Trend
- Total assets remained relatively stable between 2020 and 2021 before experiencing a contraction in 2022, reaching a period low of 143,932 million. A recovery phase followed in 2023 and 2024, with assets concluding the period at 155,881 million, effectively returning to the levels observed at the start of the five-year window.
- Shareholders' Equity Trend
- Equity demonstrated a consistent decline over the analyzed period, falling from 50,321 million in 2020 to 41,033 million by the end of 2024. Although a slight increase was noted in 2023, a significant drop occurred in 2024, marking the lowest equity position within the observed timeframe.
- Financial Leverage Ratio Analysis
- The financial leverage ratio increased from 3.09 in 2020 to 3.80 in 2024. The most pronounced escalation occurred between 2023 and 2024, where the ratio rose by 0.50 points. This upward trend indicates an expansion of the leverage profile, as the recovery in total assets coincided with a reduction in shareholders' equity, thereby increasing the proportion of debt or other liabilities relative to equity.
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Interest Coverage
Cigna Group, interest coverage 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) | ||||||
| Shareholders’ net income | 3,434) | 5,164) | 6,668) | 5,365) | 8,458) | |
| Add: Net income attributable to noncontrolling interest | 344) | 208) | 78) | 50) | 31) | |
| Add: Income tax expense | 1,491) | 141) | 1,607) | 1,367) | 2,379) | |
| Add: Interest expense on long-term and short-term debt | 1,500) | 1,400) | 1,300) | 1,300) | 1,400) | |
| Earnings before interest and tax (EBIT) | 6,769) | 6,913) | 9,653) | 8,082) | 12,268) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.51 | 4.94 | 7.43 | 6.22 | 8.76 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 13.55 | 11.46 | 15.89 | 16.41 | — | |
| Elevance Health Inc. | 7.67 | 8.49 | 10.13 | 10.93 | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 7.73 | 9.43 | 10.98 | 5.21 | — | |
| UnitedHealth Group Inc. | 6.14 | 9.97 | 13.59 | 14.44 | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 7.67 | 10.16 | 13.22 | 12.30 | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 6.11 | 7.51 | 14.75 | 14.14 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 6,769 ÷ 1,500 = 4.51
2 Click competitor name to see calculations.
An analysis of solvency metrics reveals a deteriorating capacity to cover interest obligations over the five-year period ending December 31, 2024. While the company continues to generate sufficient earnings to service its debt, the margin of safety has contracted significantly.
- Earnings Before Interest and Tax (EBIT)
- A general downward trajectory in EBIT is observed, decreasing from 12,268 million US$ in 2020 to 6,769 million US$ in 2024. Although a moderate recovery was noted in 2022, the overall trend indicates a substantial reduction in operating profitability, which serves as the primary driver for the weakening solvency position.
- Interest Expense
- Interest costs remained relatively stable between 2020 and 2022, fluctuating between 1,300 and 1,400 million US$. A gradual increase is evident in the final two years of the period, with expenses reaching 1,500 million US$ by December 31, 2024, suggesting a rise in the cost of debt or an increase in total outstanding borrowings.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates a marked decline, falling from 8.76 in 2020 to 4.51 in 2024. This compression is most pronounced between 2022 and 2024, where the ratio dropped from 7.43 to 4.51. The decline is the result of the dual pressure of diminishing operating income and marginally increasing interest expenses, which has effectively halved the company's ability to cover interest payments from its operating profits over the observed period.
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Fixed Charge Coverage
Cigna Group, fixed charge coverage 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) | ||||||
| Shareholders’ net income | 3,434) | 5,164) | 6,668) | 5,365) | 8,458) | |
| Add: Net income attributable to noncontrolling interest | 344) | 208) | 78) | 50) | 31) | |
| Add: Income tax expense | 1,491) | 141) | 1,607) | 1,367) | 2,379) | |
| Add: Interest expense on long-term and short-term debt | 1,500) | 1,400) | 1,300) | 1,300) | 1,400) | |
| Earnings before interest and tax (EBIT) | 6,769) | 6,913) | 9,653) | 8,082) | 12,268) | |
| Add: Operating lease cost | —) | 115) | 124) | 170) | 190) | |
| Earnings before fixed charges and tax | 6,769) | 7,028) | 9,777) | 8,252) | 12,458) | |
| Interest expense on long-term and short-term debt | 1,500) | 1,400) | 1,300) | 1,300) | 1,400) | |
| Operating lease cost | —) | 115) | 124) | 170) | 190) | |
| Fixed charges | 1,500) | 1,515) | 1,424) | 1,470) | 1,590) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.51 | 4.64 | 6.87 | 5.61 | 7.84 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 8.58 | 7.71 | 10.10 | 10.21 | — | |
| Elevance Health Inc. | 6.93 | 7.51 | 8.82 | 8.48 | — | |
| Intuitive Surgical Inc. | 79.87 | 74.09 | 63.52 | 93.66 | — | |
| Medtronic PLC | 5.88 | 6.90 | 7.79 | 4.31 | — | |
| UnitedHealth Group Inc. | 4.78 | 7.27 | 8.77 | 8.80 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.95 | 7.55 | 9.07 | 8.36 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 5.15 | 6.08 | 10.95 | 10.48 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,769 ÷ 1,500 = 4.51
2 Click competitor name to see calculations.
An analysis of the solvency metrics from 2020 through 2024 reveals a general deterioration in the capacity to cover fixed obligations, primarily driven by volatility and an overall decline in earnings rather than an increase in fixed costs.
- Earnings before fixed charges and tax
- A volatile downward trajectory is observed in earnings, which peaked at US$ 12,458 million in 2020 before declining to US$ 6,769 million by 2024. While a temporary recovery occurred in 2022, reaching US$ 9,777 million, the subsequent two years show a consistent contraction, resulting in a cumulative decrease of approximately 45.6% over the five-year period.
- Fixed charges
- Fixed charges have remained relatively stable, fluctuating within a narrow range between US$ 1,424 million and US$ 1,590 million. The lack of significant variance in these obligations indicates that the pressure on the coverage ratio is not a result of expanding debt service or fixed lease costs, but is instead a consequence of fluctuating operational profitability.
- Fixed charge coverage ratio
- The coverage ratio exhibits a clear downward trend, falling from a high of 7.84 in 2020 to 4.51 in 2024. A notable decline occurred between 2022 and 2023, where the ratio dropped from 6.87 to 4.64. Although the company maintains a coverage level above 4.0, the overall trend indicates a reduced margin of safety in meeting fixed obligations compared to the start of the period.
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