Stock Analysis on Net

Cigna Group (NYSE:CI)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Cigna Group, income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. income taxes 1,167 1,459 1,679 1,268 2,128
Foreign income taxes 248 161 219 207 334
State income taxes 171 180 189 112 303
Current taxes 1,586 1,800 2,087 1,587 2,765
U.S. income tax benefits (142) (533) (283) (167) (217)
Foreign income taxes (tax benefits) 64 (1,046) (28) 69 11
State income tax benefits (17) (80) (169) (122) (180)
Deferred tax benefits (95) (1,659) (480) (220) (386)
Income taxes 1,491 141 1,607 1,367 2,379

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).

Item Description The company
Current taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Cigna Group current taxes decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax benefits Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Cigna Group deferred tax benefits decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Cigna Group income taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Effective Income Tax Rate (EITR)

Cigna Group, effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Nominal federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Change in valuation allowance 14.60% 23.40% 0.00% 0.00% 0.00%
State income tax (benefit), net of federal income tax benefit 1.20% -0.70% 0.20% -0.10% 0.20%
Investment tax credits -2.10% -0.80% -0.20% 0.00% 0.00%
Impact of businesses held for sale -2.40% -3.90% 0.00% 0.00% 0.00%
Effect of foreign earnings -4.90% -3.10% -1.20% -0.50% -0.60%
Other foreign tax attributes 0.00% -2.80% 0.00% 0.00% 0.00%
Swiss tax attributes 0.00% -30.40% 0.00% 0.00% 0.00%
Impact of sale of businesses 0.00% 0.00% -0.40% 0.00% 1.00%
Health insurance industry tax 0.00% 0.00% 0.00% 0.00% 0.90%
Other 0.90% -0.10% -0.20% -0.20% -0.60%
Effective income tax rate 28.30% 2.60% 19.20% 20.20% 21.90%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Cigna Group effective income tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Components of Deferred Tax Assets and Liabilities

Cigna Group, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Foreign tax attributes 1,752 1,827
Deferred loss, sale of business 773 584
Investments 561
Other insurance and contractholder liabilities 300 353 311 263 278
Loss carryforwards 270 200 205 278 177
Other accrued liabilities 207 244 265 412 358
Employee and retiree benefit plans 177 217 189 304 477
Unrealized depreciation on investments and foreign currency translation 93 81 156
Policy acquisition expenses 39 41
Other 256 242 190 246 209
Deferred tax assets before valuation allowance 3,828 3,787 1,357 1,503 1,499
Valuation allowance for deferred tax assets (2,332) (1,498) (208) (246) (207)
Deferred tax assets, net of valuation allowance 2,057 2,289 1,149 1,257 1,292
Acquisition-related basis differences (7,822) (8,105) (8,347) (8,726) (8,989)
Depreciation and amortization (243) (371) (512) (698) (660)
Policy acquisition expenses (74) (312) (289)
Unrealized appreciation on investments and foreign currency translation (104) (171)
Other (41) (212) (122)
Deferred tax liabilities (8,139) (8,476) (8,900) (10,052) (10,231)
Net deferred income tax assets (liabilities) (6,082) (6,187) (7,751) (8,795) (8,939)
Net deferred income tax assets (liabilities) classified as Liabilities of businesses held for sale 449
Net deferred income tax assets (liabilities) per Consolidated Balance Sheets (6,082) (6,187) (7,751) (8,346) (8,939)

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).

Item Description The company
Deferred tax assets before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Cigna Group deferred tax assets before valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Cigna Group deferred tax assets, net of valuation allowance increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net deferred income tax assets (liabilities) per Consolidated Balance Sheets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Cigna Group net deferred income tax assets (liabilities) per Consolidated Balance Sheets increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Cigna Group, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets (reported in Other assets) 893 1,055
Deferred tax liabilities 6,975 7,242 7,751 8,346 8,939

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).

Item Description The company
Deferred tax assets (reported in Other assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Cigna Group deferred tax assets (reported in Other assets) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Cigna Group deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Cigna Group, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 155,881 152,761 143,932 154,889 155,451
Less: Noncurrent deferred tax assets, net 893 1,055
Total assets (adjusted) 154,988 151,706 143,932 154,889 155,451
Adjustment to Total Liabilities
Total liabilities (as reported) 114,638 106,410 98,981 107,705 105,065
Less: Noncurrent deferred tax liabilities, net 6,975 7,242 7,751 8,346 8,939
Total liabilities (adjusted) 107,663 99,168 91,230 99,359 96,126
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 41,033 46,223 44,872 47,112 50,321
Less: Net deferred tax assets (liabilities) (6,082) (6,187) (7,751) (8,346) (8,939)
Shareholders’ equity (adjusted) 47,115 52,410 52,623 55,458 59,260
Adjustment to Shareholders’ Net Income
Shareholders’ net income (as reported) 3,434 5,164 6,668 5,365 8,458
Add: Deferred income tax expense (benefit) (95) (1,659) (480) (220) (386)
Shareholders’ net income (adjusted) 3,339 3,505 6,188 5,145 8,072

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).


Cigna Group, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Cigna Group, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 1.40% 2.66% 3.72% 3.11% 5.31%
Adjusted net profit margin 1.36% 1.81% 3.45% 2.98% 5.07%
Total Asset Turnover
Reported total asset turnover 1.58 1.27 1.25 1.11 1.02
Adjusted total asset turnover 1.59 1.28 1.25 1.11 1.02
Financial Leverage
Reported financial leverage 3.80 3.30 3.21 3.29 3.09
Adjusted financial leverage 3.29 2.89 2.74 2.79 2.62
Return on Equity (ROE)
Reported ROE 8.37% 11.17% 14.86% 11.39% 16.81%
Adjusted ROE 7.09% 6.69% 11.76% 9.28% 13.62%
Return on Assets (ROA)
Reported ROA 2.20% 3.38% 4.63% 3.46% 5.44%
Adjusted ROA 2.15% 2.31% 4.30% 3.32% 5.19%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cigna Group adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cigna Group adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cigna Group adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Cigna Group adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cigna Group adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Cigna Group, Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income 3,434 5,164 6,668 5,365 8,458
Revenues from external customers 246,148 194,099 179,361 172,529 159,157
Profitability Ratio
Net profit margin1 1.40% 2.66% 3.72% 3.11% 5.31%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income 3,339 3,505 6,188 5,145 8,072
Revenues from external customers 246,148 194,099 179,361 172,529 159,157
Profitability Ratio
Adjusted net profit margin2 1.36% 1.81% 3.45% 2.98% 5.07%

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).

2024 Calculations

1 Net profit margin = 100 × Shareholders’ net income ÷ Revenues from external customers
= 100 × 3,434 ÷ 246,148 = 1.40%

2 Adjusted net profit margin = 100 × Adjusted shareholders’ net income ÷ Revenues from external customers
= 100 × 3,339 ÷ 246,148 = 1.36%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cigna Group adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues from external customers 246,148 194,099 179,361 172,529 159,157
Total assets 155,881 152,761 143,932 154,889 155,451
Activity Ratio
Total asset turnover1 1.58 1.27 1.25 1.11 1.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues from external customers 246,148 194,099 179,361 172,529 159,157
Adjusted total assets 154,988 151,706 143,932 154,889 155,451
Activity Ratio
Adjusted total asset turnover2 1.59 1.28 1.25 1.11 1.02

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).

2024 Calculations

1 Total asset turnover = Revenues from external customers ÷ Total assets
= 246,148 ÷ 155,881 = 1.58

2 Adjusted total asset turnover = Revenues from external customers ÷ Adjusted total assets
= 246,148 ÷ 154,988 = 1.59

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cigna Group adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
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
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 154,988 151,706 143,932 154,889 155,451
Adjusted shareholders’ equity 47,115 52,410 52,623 55,458 59,260
Solvency Ratio
Adjusted financial leverage2 3.29 2.89 2.74 2.79 2.62

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 155,881 ÷ 41,033 = 3.80

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 154,988 ÷ 47,115 = 3.29

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cigna Group adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income 3,434 5,164 6,668 5,365 8,458
Shareholders’ equity 41,033 46,223 44,872 47,112 50,321
Profitability Ratio
ROE1 8.37% 11.17% 14.86% 11.39% 16.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income 3,339 3,505 6,188 5,145 8,072
Adjusted shareholders’ equity 47,115 52,410 52,623 55,458 59,260
Profitability Ratio
Adjusted ROE2 7.09% 6.69% 11.76% 9.28% 13.62%

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).

2024 Calculations

1 ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 3,434 ÷ 41,033 = 8.37%

2 Adjusted ROE = 100 × Adjusted shareholders’ net income ÷ Adjusted shareholders’ equity
= 100 × 3,339 ÷ 47,115 = 7.09%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Cigna Group adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income 3,434 5,164 6,668 5,365 8,458
Total assets 155,881 152,761 143,932 154,889 155,451
Profitability Ratio
ROA1 2.20% 3.38% 4.63% 3.46% 5.44%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income 3,339 3,505 6,188 5,145 8,072
Adjusted total assets 154,988 151,706 143,932 154,889 155,451
Profitability Ratio
Adjusted ROA2 2.15% 2.31% 4.30% 3.32% 5.19%

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).

2024 Calculations

1 ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 3,434 ÷ 155,881 = 2.20%

2 Adjusted ROA = 100 × Adjusted shareholders’ net income ÷ Adjusted total assets
= 100 × 3,339 ÷ 154,988 = 2.15%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cigna Group adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.