Cigna Group (NYSE:CI)

Goodwill

Goodwill showed a slight increase from 44,648 million USD in 2020 to a peak of 46,045 million USD in 2021, followed by a gradual decline in subsequent years to 44,370 million USD by the end of 2024. This pattern suggests some initial growth or acquisition activity in 2021, with moderate reductions or impairments in the following years.

Customer Relationships

The value of customer relationships remained relatively stable over the five-year period, fluctuating marginally between 29,432 million USD and 29,978 million USD. Such consistency indicates a maintained value of customer-related intangibles without significant impairment or addition.

Trade Name - Express Scripts

The trade name asset value was constant at 8,400 million USD throughout the period. This stability implies no revaluation or impairment affecting this intangible asset during the period reviewed.

Other Intangible Assets (Cost)

The recorded cost of other intangible assets showed a minor upward trend, increasing slightly from 38,307 million USD in 2020 to a peak of 38,844 million USD in 2021, and then marginally declining to 38,687 million USD by 2024. This pattern indicates generally stable acquisitions or additions with limited disposals or write-offs.

Accumulated Amortization

Accumulated amortization increased steadily and significantly each year, from -3,128 million USD in 2020 to -9,250 million USD in 2024. The continuous rise in accumulated amortization reflects ongoing systematic expense recognition of intangible assets.

Other Intangible Assets (Net Carrying Value)

The net carrying value of other intangible assets decreased consistently yearly, dropping from 35,179 million USD in 2020 to 29,437 million USD in 2024. This downward trend aligns with the increase in accumulated amortization, indicating the amortization expense is reducing the net book value of these assets.

Goodwill and Other Intangibles (Total)

The combined total of goodwill and other intangible assets peaked at 80,269 million USD in 2021, then showed a declining trend through 2024, ending at 73,807 million USD. This overall decrease is primarily driven by reductions in goodwill after 2021 and the consistent amortization of other intangible assets.

Total Assets

Reported total assets exhibit a minor fluctuation over the analyzed period. Starting at approximately $155.5 billion in 2020, they slightly declined to about $143.9 billion in 2022 before increasing again to $155.9 billion in 2024, nearly returning to the initial level. Adjusted total assets follow a similar pattern but at a lower scale, beginning near $110.8 billion in 2020, dipping to below $98.2 billion in 2022, and subsequently recovering to around $111.5 billion by 2024.

Shareholders' Equity

Reported shareholders’ equity shows a consistent decreasing trend from 2020 through 2024. It decreases from approximately $50.3 billion to about $41.0 billion. This suggests a reduction in net asset value available to shareholders over these years. In contrast, adjusted shareholders’ equity presents significant variability and negative figures in certain years. Starting at a positive value of around $5.7 billion in 2020, it drops sharply to roughly $1.1 billion in 2021, turns negative in 2022 (-$0.9 billion), slightly improves in 2023, and declines again to approximately -$3.3 billion in 2024. This pattern reflects considerable fluctuations in equity values once goodwill adjustments are considered, indicating potential impairments or write-downs affecting the net equity base.

Overall Financial Position Insights

The reported total assets remain relatively stable with mild volatility, while reported shareholders’ equity shows a clear declining trajectory, implying potential pressures on the company's net worth. The adjusted figures, accounting for goodwill, highlight more pronounced instability, particularly in equity, with negative values in multiple years signaling impairment concerns. This divergence between reported and adjusted equity emphasizes the impact of intangible asset adjustments on the financial health perception.

Total Asset Turnover

The reported total asset turnover demonstrates a consistent upward trend from 1.02 in 2020 to 1.58 in 2024, indicating improving efficiency in asset utilization over the analyzed period. The adjusted total asset turnover, which appears to account for goodwill adjustments, also shows a marked increase from 1.44 in 2020 to 2.21 in 2024, with a slight dip observed in 2023 compared to 2022. The adjusted values consistently exceed the reported figures, suggesting that asset efficiency is notably higher when goodwill is taken into consideration.

Financial Leverage

Reported financial leverage remains relatively stable with a slight increase, moving from 3.09 in 2020 to 3.80 in 2024. In contrast, adjusted financial leverage figures exhibit significant volatility; an extraordinary spike in 2021 reaches a value of 102.01 before dropping to 55.25 in 2023. Data for 2022 and 2024 is unavailable. These fluctuations in adjusted leverage likely reflect re-assessments surrounding goodwill or other intangible assets, and suggest considerable variability in the capital structure when goodwill is excluded.

Return on Equity (ROE)

Reported ROE shows a declining trend over five years, starting at 16.81% in 2020 and decreasing to 8.37% in 2024. This pattern indicates a diminishing ability to generate profit from shareholder equity. Contrarily, adjusted ROE is substantially higher for the years reported, with figures such as 149.09% in 2020 and a peak of 502.81% in 2021, though 2022 data is missing. In 2023 the adjusted ROE remains high at 262.93%. The large disparity between reported and adjusted ROE underscores the significant impact of goodwill on equity returns, highlighting that when goodwill is adjusted out, equity returns appear much stronger but more volatile.

Return on Assets (ROA)

The reported ROA decreases steadily from 5.44% in 2020 to 2.20% in 2024, implying a declining return on the company’s overall assets. Adjusted ROA also follows a downward trend but remains consistently higher than reported ROA, starting at 7.63% in 2020 and declining to 3.08% in 2024. Except for 2022 where adjusted ROA increases relative to 2021, the general trend suggests diminishing operational efficiency or profitability when considering the asset base excluding goodwill.

Overall Insights

The analysis discloses a general improvement in asset turnover over time, reflecting enhanced utilization of assets. However, profitability metrics such as ROE and ROA, both reported and adjusted, point to weakening returns in the latter years. The large discrepancies between reported and goodwill adjusted metrics reveal the significant influence of intangible assets on reported financial performance. Finally, the volatility in adjusted financial leverage suggests irregularities or substantial adjustments related to goodwill in the company’s capital structure during the observed period.

The data exhibits the financial evolution over five years, highlighting both reported and goodwill-adjusted figures. The reported total assets display a slight fluctuation, starting at 155,451 million US dollars in 2020, dipping marginally to 143,932 million in 2022, and then recovering steadily to reach 155,881 million by 2024. This pattern suggests a period of contraction followed by renewed growth, potentially indicating asset optimization or divestitures before expansion.

In contrast, the adjusted total assets, which exclude goodwill, show a more pronounced decline from 110,803 million US dollars in 2020 to a low of 98,121 million in 2022. Subsequent years reflect a recovery trend, culminating at 111,511 million in 2024. The sharper reduction in adjusted assets may imply that a significant portion of reported assets' volatility is attributed to goodwill adjustments.

Examining asset turnover ratios reveals improving efficiency in asset utilization over the period. The reported total asset turnover rises consistently from 1.02 in 2020 to 1.58 in 2024, indicating better revenue generation relative to the asset base. Similarly, adjusted total asset turnover progresses from 1.44 to 2.21, showing even higher effectiveness when goodwill is excluded.

The growing disparity between reported and adjusted asset turnover ratios suggests that non-goodwill assets contribute more substantially to revenue efficiency. Enhanced turnover ratios combined with relatively stable reported assets imply management's success in optimizing core operational assets. Overall, the trends reflect a strategic focus on improving asset productivity and a recovery from asset base contraction experienced in the earlier years.

The data reveals several notable trends in the reported and goodwill adjusted financial metrics over the five-year period.

Total Assets

Reported total assets show a slight decline from 155,451 million US dollars in 2020 to 143,932 million in 2022, followed by a recovery trend reaching 155,881 million in 2024. Adjusted total assets follow a similar pattern but at significantly lower levels, decreasing from 110,803 million in 2020 to 98,121 million in 2022, before recovering to 111,511 million in 2024. The adjusted figures highlight the impact of goodwill adjustments, indicating a more conservative asset base after adjustment.

Shareholders' Equity

Reported shareholders’ equity decreases consistently from 50,321 million in 2020 to 41,033 million in 2024, indicating a gradual erosion of equity over the period. In contrast, adjusted shareholders’ equity shows extreme volatility, starting at a positive 5,673 million in 2020, sharply dropping to 1,067 million in 2021, turning negative (-939 million) in 2022, recovering to a small positive 1,964 million in 2023, and again dropping to a negative value (-3,337 million) in 2024. This volatility and recurring negative equity suggest significant goodwill impairments or other adjustments severely affecting the net asset value on an adjusted basis.

Financial Leverage

Reported financial leverage ratios rise gradually from 3.09 in 2020 to 3.8 in 2024, indicating an increasing reliance on debt or other liabilities relative to equity. The adjusted financial leverage ratios, where available, are markedly higher and fluctuate dramatically, with a spike from 19.53 in 2020 to 102.01 in 2021, missing data for 2022, and a sharp decline to 55.25 in 2023. The extremely high and variable leverage ratios on an adjusted basis are consistent with the unstable and negative equity figures, reflecting higher financial risk when goodwill and related adjustments are considered.

Overall, the reported financial data suggests moderate fluctuations with a general downward trend in equity and a slight increase in leverage, while the goodwill adjusted data reveals considerable volatility and financial stress indicators, including negative equity and elevated leverage levels. This contrast highlights the significant effect of goodwill adjustments on the company's financial health and risk profile over the analyzed period.

The analysis of the financial performance and position over the five-year period reveals notable trends in both reported and goodwill-adjusted metrics. The reported shareholders’ equity displays a generally declining trajectory from 50,321 million US dollars at the end of 2020 to 41,033 million US dollars by the end of 2024. After a decrease in equity from 2020 through 2022, a slight recovery is observed in 2023, followed by another decline in 2024.

In contrast, the adjusted shareholders’ equity—reflecting adjustments such as goodwill impairments—exhibits considerable volatility and negative values in several instances. It starts at 5,673 million US dollars at the end of 2020, sharply decreases to 1,067 million in 2021, turns negative at -939 million in 2022, rebounds to 1,964 million in 2023, and again falls to -3,337 million in 2024. This pattern indicates significant fluctuations in the underlying net assets after adjustments, implying potential impairments or revaluations impacting these figures.

Regarding profitability, the reported return on equity (ROE) decreases steadily over the five-year span, from a robust 16.81% in 2020 to a more moderate 8.37% by 2024. This downward trend suggests a reduction in the company’s efficiency in generating returns on reported shareholders’ equity.

The adjusted ROE, where available, shows extreme variability. An exceptionally high 149.09% in 2020 jumps to a striking 502.81% in 2021, no value is reported for 2022, then declines to a still elevated 262.93% in 2023, with no value provided for 2024. These inflated adjusted ROE figures, coupled with the negative and volatile adjusted equity values, may indicate that smaller or negative equity bases are distorting the ratio, thereby limiting its interpretability and reliability as a consistent performance metric over time.

Overall, the data reveals a weakening trend in reported equity and profitability metrics alongside significant instability in goodwill-adjusted figures. The fluctuations and negative values in adjusted shareholders’ equity warrant further investigation to understand the underlying causes, such as asset impairments or accounting adjustments, which materially affect the company's equity base and profitability measures.

The financial data reveals several notable trends in the reported and goodwill adjusted figures over the five-year period ending December 31, 2024.

Total Assets

The reported total assets showed a slight decline from 155,451 million US dollars at the end of 2020 to 143,932 million in 2022, followed by a recovery and incremental growth reaching 155,881 million by the end of 2024. This indicates an initial contraction in asset size which was subsequently reversed in the last two years.

Adjusted total assets, which presumably exclude goodwill and other intangible assets, followed a similar but more pronounced downward trend until 2022, decreasing from 110,803 million to 98,121 million. Afterwards, there was a consistent increase through 2024, ending at 111,511 million. The adjustment highlights a sharper contraction in core asset value between 2020 and 2022, with recovery thereafter.

Return on Assets (ROA)

The reported ROA declined from 5.44% in 2020 to a low of 2.20% in 2024, with fluctuations including a relative peak of 4.63% in 2022. This downward trajectory suggests deterioration in overall asset profitability despite a temporary improvement in 2022.

Adjusted ROA exhibited a similar pattern but remained consistently higher than the reported ROA, starting at 7.63% in 2020 and decreasing to 3.08% by 2024. This differential indicates that asset profitability excluding goodwill-related assets was stronger but also experienced decline over time.

Overall, the data shows that both total assets and adjusted assets contracted notably in the early part of the period before rebounding in the last two years. Conversely, profitability ratios measured by ROA demonstrated a decreasing trend throughout the period, with adjusted ROA outperforming reported ROA but following the same downward course. This may imply increased challenges in generating returns from the asset base, notwithstanding the recovery of asset size toward the end of the period.