Analysis of Debt
Total Debt (Carrying Amount)
Cigna Group, balance sheet: debt
US$ in millions
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 total debt carrying amount exhibited a period of fluctuation between 2020 and 2024, characterized by a mid-period decline followed by a recent uptick. Total debt peaked in 2021 at 33,670 million US$ before trending downward to a low of 30,930 million US$ in 2023. By the end of 2024, the total debt increased to 31,972 million US$, indicating a return to a higher leverage level compared to the previous two years.
- Total Debt Trajectory
- The overall debt profile shows a non-linear trend. Between 2020 and 2021, total debt rose by approximately 2.3%. This was followed by a significant contraction of 7.6% in 2022 and a marginal further decrease in 2023. The most recent period from 2023 to 2024 saw a reversal, with total debt increasing by 3.4%.
- Long-Term Debt Composition
- Long-term debt constitutes the vast majority of the total debt carrying amount. It mirrored the overall trend, increasing to 31,125 million US$ in 2021 and decreasing to 28,100 million US$ in 2022. The balance remained relatively stable in 2023 at 28,155 million US$ before rising to 28,937 million US$ in 2024. The predominance of long-term obligations suggests a financing strategy focused on extended maturity profiles.
- Short-Term Debt Volatility
- Short-term debt displayed higher relative volatility compared to long-term debt. After a decrease from 3,374 million US$ in 2020 to 2,545 million US$ in 2021, it experienced several fluctuations, ending the period at 3,035 million US$ in 2024. These variations suggest active management of short-term liquidity and working capital requirements.
- Debt Structure Analysis
- The ratio of short-term to long-term debt remained low throughout the five-year period. In 2024, short-term debt represented approximately 9.5% of the total carrying amount, maintaining a consistent structural reliance on long-term financing to support the organization's capital needs.
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Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper | 880) |
| Long-term debt, including current maturities, excluding finance leases | 28,392) |
| Finance lease liabilities | 84) |
| Total debt (fair value) | 29,356) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.29%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.65% | 880) | 41) | |
| 3.25% | 897) | 29) | |
| 4.13% | 1,215) | 50) | |
| 4.50% | 1,285) | 58) | |
| 1.25% | 549) | 7) | |
| 5.69% | 699) | 40) | |
| 3.40% | 1,466) | 50) | |
| 7.88% | 259) | 20) | |
| 3.05% | 598) | 18) | |
| 4.38% | 3,790) | 166) | |
| 5.00% | 995) | 50) | |
| 2.40% | 1,386) | 33) | |
| 2.38% | 1,384) | 33) | |
| 5.13% | 745) | 38) | |
| 8.08% | 45) | 4) | |
| 5.40% | 795) | 43) | |
| 5.25% | 1,226) | 64) | |
| 6.15% | 190) | 12) | |
| 4.80% | 2,193) | 105) | |
| 3.20% | 744) | 24) | |
| 5.88% | 119) | 7) | |
| 6.13% | 485) | 30) | |
| 5.38% | 315) | 17) | |
| 4.80% | 1,469) | 71) | |
| 3.88% | 990) | 38) | |
| 4.90% | 2,971) | 146) | |
| 3.40% | 1,237) | 42) | |
| 3.40% | 1,479) | 50) | |
| 5.60% | 1,482) | 83) | |
| Total | 31,888) | 1,368) | |
| 4.29% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,368 ÷ 31,888 = 4.29%