Stock Analysis on Net

Cigna Group (NYSE:CI)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 155,881 152,761 143,932 154,889 155,451
Adjustment to Total Debt
Total debt (as reported) 31,972 30,930 31,093 33,670 32,919
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities (included in Accrued expenses and other liabilities) 105 114 159 152
Add: Operating lease liabilities (included in Other non-current liabilities) 340 346 436 491
Total debt (adjusted) 31,972 31,375 31,553 34,265 33,562

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, 2 Equal to total present value of future operating lease payments.


Cigna Group, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Cigna Group, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 1.58 1.27 1.25 1.11 1.02
Adjusted total asset turnover 1.58 1.27 1.25 1.11 1.02
Debt to Equity2
Reported debt to equity 0.78 0.67 0.69 0.71 0.65
Adjusted debt to equity 0.78 0.68 0.70 0.73 0.67
Return on Assets3 (ROA)
Reported ROA 2.20% 3.38% 4.63% 3.46% 5.44%
Adjusted ROA 2.20% 3.38% 4.63% 3.46% 5.44%

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).

Financial 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Cigna Group adjusted debt to equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as 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 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 Operating Leases
Selected Financial Data (US$ in millions)
Revenues from external customers 246,148 194,099 179,361 172,529 159,157
Adjusted total assets 155,881 152,761 143,932 154,889 155,451
Activity Ratio
Adjusted total asset turnover2 1.58 1.27 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 ÷ 155,881 = 1.58

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 Debt to Equity

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 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
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 31,972 31,375 31,553 34,265 33,562
Shareholders’ equity 41,033 46,223 44,872 47,112 50,321
Solvency Ratio
Adjusted debt to equity2 0.78 0.68 0.70 0.73 0.67

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 Debt to equity = Total debt ÷ Shareholders’ equity
= 31,972 ÷ 41,033 = 0.78

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 31,972 ÷ 41,033 = 0.78

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Cigna Group adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly 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 Operating Leases
Selected Financial Data (US$ in millions)
Shareholders’ net income 3,434 5,164 6,668 5,365 8,458
Adjusted total assets 155,881 152,761 143,932 154,889 155,451
Profitability Ratio
Adjusted ROA2 2.20% 3.38% 4.63% 3.46% 5.44%

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).

2024 Calculations

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

2 Adjusted ROA = 100 × Shareholders’ net income ÷ Adjusted total assets
= 100 × 3,434 ÷ 155,881 = 2.20%

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