Cigna Group (NYSE:CI)

Total Asset Turnover

The total asset turnover ratio exhibited a consistent upward trajectory from 1.02 in 2020 to 1.58 in 2024, indicating improved efficiency in using assets to generate revenue. Both reported and adjusted figures closely align, suggesting reliability in the measurement.

Debt to Equity

The reported debt to equity ratio increased slightly from 0.65 in 2020 to 0.78 in 2024, although it experienced minor fluctuations between years. The adjusted ratio follows a similar pattern but remains lower, rising from 0.57 to 0.68 over the same period. This denotes a moderate increase in leverage but still at a controlled level.

Debt to Capital

This ratio remained relatively stable, with reported figures moving marginally between 0.40 and 0.44, and adjusted figures maintaining a range from 0.36 to 0.40. This stability indicates that the company's capital structure has seen little change over the years in terms of debt proportion.

Financial Leverage

Financial leverage showed a noticeable increase, moving from a reported 3.09 in 2020 to 3.80 in 2024, while adjusted figures rose from 2.62 to 3.27. This trend suggests an increasing reliance on debt to finance assets, potentially heightening financial risk.

Net Profit Margin

Both reported and adjusted net profit margins have trended downward sharply over the period. Reported margin declined from 5.31% in 2020 to 1.40% in 2024, while adjusted margin fell from 5.13% to 1.30%. This suggests a considerable compression in profitability, which may be attributed to increased costs, pricing pressure, or other operational challenges.

Return on Equity (ROE)

ROE experienced a declining trend with reported values decreasing from 16.81% in 2020 to 8.37% in 2024, and adjusted values dropping from 13.77% to 6.77%. This decline signals a reduction in the efficiency of equity utilization to generate profits, consistent with the contraction in net profit margins.

Return on Assets (ROA)

ROA followed a downward path as well, with reported ROA decreasing from 5.44% to 2.20% and adjusted ROA from 5.25% to 2.07%. This decrease indicates diminishing effectiveness in utilizing assets to generate earnings, reflecting the overall profitability challenges faced.

Revenues from external customers

The revenues exhibited a consistent upward trajectory from 2020 through 2024. Starting at approximately 159 billion US dollars in 2020, revenues increased steadily each year, culminating in a significant rise to 246 billion US dollars by the end of 2024. The most notable increase occurred between 2023 and 2024, suggesting an acceleration in revenue growth during this period.

Total assets

Total assets remained relatively stable over the five-year period, fluctuating slightly but showing no strong upward or downward trend. The value declined modestly from around 155 billion US dollars in 2020 to approximately 143.9 billion in 2022, followed by a recovery to nearly 156 billion by 2024. This indicates a period of asset reduction followed by asset growth or stabilization.

Reported total asset turnover

The reported total asset turnover ratio demonstrated a positive trend, increasing from 1.02 in 2020 to 1.58 in 2024. This improvement suggests greater efficiency in generating revenues from the asset base over time, with the most substantial gains occurring between 2023 and 2024. The rising ratio implies enhanced operational effectiveness or improved asset utilization.

Adjusted total assets

Adjusted total assets followed a pattern similar to total assets, starting at approximately 155 billion US dollars in 2020, dropping to about 143.9 billion in 2022, and subsequently increasing to nearly 155 billion in 2024. The alignment between adjusted and reported total assets throughout the years indicates consistency in asset adjustments.

Adjusted total asset turnover

The adjusted total asset turnover ratio increased in a manner nearly identical to the reported turnover ratio, moving from 1.02 in 2020 to 1.59 in 2024. This consistent rise reinforces the indication of improving efficiency in converting adjusted asset values into revenues.

The data reveals several noteworthy trends in the financial structure over the five-year horizon. Total debt figures exhibited a slight fluctuation, initially rising from approximately $32.9 billion in 2020 to a peak near $33.7 billion in 2021, followed by a gradual reduction through 2023 before increasing again in 2024 to around $32 billion. This suggests a relatively stable but cautious debt management approach with minor variation across the periods.

Shareholders’ equity demonstrated a declining trend from 2020 through 2024. Starting at about $50.3 billion in 2020, equity decreased each year, with a minor uptick in 2023, reaching a low near $41 billion by the end of 2024. This consistent decline may indicate challenges related to retained earnings or other comprehensive income components affecting net worth.

Regarding leverage, the reported debt-to-equity ratio rose from 0.65 in 2020 to 0.78 in 2024, indicating an increasing reliance on debt financing relative to equity. This trend aligns with the decrease in equity coupled with generally stable debt levels, implying a modest increase in financial risk over the period.

When adjusted figures are considered, total debt follows a similar pattern to reported debt, with a peak in 2021, a decline until 2023, and a slight rise again in 2024. Adjusted total equity also declines from about $59.3 billion in 2020 to approximately $47.3 billion in 2024, reflecting the same trend observed in reported equity but at a higher baseline, possibly incorporating additional equity components or adjustments.

The adjusted debt-to-equity ratio starts at 0.57 in 2020 and increases to 0.68 by 2024. This increase confirms the trend toward higher leverage but at a lower absolute ratio compared to the reported figures, which may imply that adjustments temper the perceived financial risk somewhat.

Overall, the trends indicate a gradual increase in leverage driven largely by declining equity rather than significant increases in debt. The company's capital structure demonstrates increased dependence on debt financing, which could impact financial flexibility and risk profile going forward. Careful monitoring of equity levels and debt management strategies appears warranted to maintain a balanced financial position.

Total Debt

Total debt experienced minor fluctuations over the analyzed periods. Initially, it increased slightly from 32,919 million USD at the end of 2020 to 33,670 million USD in 2021, then declined to 31,093 million USD by the end of 2022. The figure remained relatively stable through 2023 before observing a modest rise to 31,972 million USD in 2024. Overall, total debt showed a limited downward trend after 2021, with a slight uptick in the final year.

Total Capital

Total capital demonstrated a consistent downward trend throughout the period. It started at 83,240 million USD in 2020 and steadily decreased to 73,005 million USD by 2024. This decline indicates a reduction in the overall capital base over the five-year span, which might reflect changes in equity or retained earnings.

Reported Debt to Capital Ratio

The reported debt to capital ratio exhibited relatively stable behavior, oscillating narrowly between 0.4 and 0.44. After rising slightly from 0.4 in 2020 to 0.42 in 2021, it dipped to 0.41 in 2022 and 0.4 in 2023 before increasing again to 0.44 in 2024. This suggests that the proportion of debt relative to capital remained largely constant with minor upward pressure toward the end of the period.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to total debt, with initial growth from 33,562 million USD in 2020 to 34,265 million USD in 2021. It then declined to 31,553 million USD in 2022 and 31,375 million USD in 2023, before a small increase to 31,972 million USD in 2024. This adjustment confirms the overall slight decrease in indebtedness with stable levels in the later years.

Adjusted Total Capital

Adjusted total capital consistently decreased from 92,887 million USD at the end of 2020 to 79,297 million USD by the close of 2024. The reduction was continuous across all years, signaling a contraction in adjusted capital base, akin to the trend observed in total capital but starting from a higher base value.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio displayed slight fluctuations but a general increasing tendency. Beginning at 0.36 in 2020, it rose to 0.38 in 2021, dipped to 0.37 in 2022 and 2023, and increased to 0.4 in 2024. This trend suggests that, when adjustments are considered, debt represents a growing proportion of capital over the analysis period.

Summary Insight

Overall, the financial data reveal a scenario where total and adjusted capital are decreasing steadily, while total and adjusted debt show only minor overall changes with some fluctuations. As a result, both reported and adjusted debt-to-capital ratios tend to rise slightly toward the end of the analysis period, indicating an incremental increase in financial leverage. This shift reflects a modest increase in reliance on debt relative to capital, potentially signaling changes in the capital structure that may warrant further monitoring for financial stability and risk management purposes.

Total Assets

The total assets displayed a slight decline from 155,451 million US$ in 2020 to 143,932 million US$ in 2022, followed by a recovery to 155,881 million US$ in 2024. This indicates an initial contraction in asset base during 2021 and 2022, with a subsequent increase approaching the original level by 2024.

Shareholders’ Equity

Shareholders’ equity decreased steadily over the period, declining from 50,321 million US$ in 2020 to 41,033 million US$ by 2024. The reduction was consistent each year, suggesting a diminishing equity base potentially due to losses, dividends, or share buybacks.

Reported Financial Leverage

The reported financial leverage ratio rose from 3.09 in 2020 to 3.8 in 2024. While there were minor fluctuations, the overall trend reflects increasing use of debt relative to equity, corroborating the observed decrease in shareholders’ equity.

Adjusted Total Assets

The adjusted total assets followed a pattern similar to total assets, with a dip to 143,932 million US$ in 2022 and a recovery to 154,988 million US$ in 2024. These values are slightly lower than the unadjusted total assets in the latter years, reflecting possible adjustments for accounting or valuation purposes.

Adjusted Total Equity

Adjusted total equity showed a consistent decline from 59,325 million US$ in 2020 to 47,325 million US$ in 2024. The adjusted equity remained substantially higher than the reported shareholders’ equity, suggesting adjustments that increase the recognized equity base, though the downward trend remains evident.

Adjusted Financial Leverage

The adjusted financial leverage ratio increased from 2.62 in 2020 to 3.27 in 2024. This increase parallels that of the reported leverage ratio, indicating a rising leverage position even after adjustments, signifying greater reliance on debt financing over time.

Shareholders’ net income

There is a noticeable decline in shareholders’ net income over the five-year period. Starting at US$8,458 million in 2020, the value decreased sharply to US$5,365 million in 2021, then partially recovered to US$6,668 million in 2022. However, the following two years saw further decreases, reaching a low of US$3,434 million by 2024. This indicates a downward trend in profitability on an absolute basis.

Revenues from external customers

Revenues show a consistent upward trend throughout the period. Beginning at US$159,157 million in 2020, they increased every year, accelerating notably in 2024 to US$246,148 million. This steady growth in revenues suggests expanding business activities or strengthened market position.

Reported net profit margin

The reported net profit margin fell significantly from 5.31% in 2020 to 3.11% in 2021, recovered slightly to 3.72% in 2022, and then declined again to 2.66% in 2023, reaching a low of 1.4% in 2024. This pattern indicates that despite revenue growth, profitability relative to revenue has been eroding, pointing to rising costs, margin pressures, or other operational challenges.

Adjusted net income

Adjusted net income also declined over the period, starting at US$8,167 million in 2020 and dropping to US$3,206 million in 2024. The downward trajectory mirrors that of shareholders’ net income, implying that non-recurring or exceptional items do not fully explain the profitability weakening.

Adjusted net profit margin

The adjusted net profit margin followed a consistent downward trend from 5.13% in 2020 to 1.3% in 2024. This decrease reinforces the observation that core profitability has been under pressure, which may warrant further analysis into cost structures and operational efficiency.

Overall summary

The company displays a situation of growing revenues alongside declining profitability margins and net income figures. This divergence suggests either increasing costs, competitive pressures reducing margins, or potentially adverse economic factors impacting profitability. The adjusted and reported metrics both indicate erosion in financial performance, highlighting the need for strategic focus on margin improvement despite revenue growth.

The financial data over the five-year period reveals several notable trends in profitability and equity metrics.

Shareholders’ Net Income

The shareholders’ net income shows a fluctuating pattern with an initial decline from $8,458 million in 2020 to $5,365 million in 2021, followed by a modest recovery to $6,668 million in 2022. However, it declines again in the subsequent years, reaching $3,434 million in 2024, indicating downward pressure on net profitability in the later years.

Shareholders’ Equity

Shareholders’ equity trends downward over the period, starting from $50,321 million in 2020 and falling steadily to $41,033 million by the end of 2024. This decrease suggests a reduction in the net asset base available to shareholders.

Reported Return on Equity (ROE)

The reported ROE follows a pattern consistent with net income changes, declining from 16.81% in 2020 to 11.39% in 2021, then partially recovering to 14.86% in 2022 before decreasing continuously to 8.37% in 2024. This trend reflects a diminishing efficiency in generating profit relative to shareholders’ equity.

Adjusted Net Income

Adjusted net income shows a similar overall declining trend, starting at $8,167 million in 2020 and dropping significantly to $3,206 million by 2024. The decline is marked especially from 2022 onward, signaling challenges in underlying operational profitability after adjustments.

Adjusted Total Equity

Adjusted total equity mirrors the downward trajectory of reported shareholders’ equity, decreasing from $59,325 million in 2020 to $47,325 million in 2024. The decline is more gradual but consistent, suggesting a reduced capital base when adjusted for non-operational items.

Adjusted Return on Equity (ROE)

Adjusted ROE declines steadily across the period, from 13.77% in 2020 to 6.77% in 2024, reflecting diminished return levels on equity after adjustments. The sharper decline compared to reported ROE indicates that underlying operational profitability has been more negatively impacted when removing non-recurring factors and adjustments.

Overall, the data indicates a challenging financial environment with declining profitability and equity levels. Both reported and adjusted measures highlight a decrease in net income and return on equity, alongside a shrinking equity base. The trends suggest a need for strategic focus on improving operational efficiency and capital management to arrest the decline in financial performance.

Shareholders’ Net Income

The shareholders’ net income exhibited a declining trend over the five-year period. Starting at 8,458 million US dollars in 2020, the net income decreased sharply to 5,365 million in 2021. There was a partial recovery in 2022 to 6,668 million, followed by two consecutive years of decline, reaching 3,434 million in 2024. Overall, the net income more than halved from 2020 to 2024, indicating challenges in maintaining profitability.

Total Assets

Total assets showed moderate fluctuations but remained relatively stable over the period. Assets decreased from 155,451 million US dollars in 2020 to a low of 143,932 million in 2022, then gradually increased to 155,881 million by the end of 2024. This suggests asset levels have been managed with some variability but no significant long-term growth or contraction.

Reported Return on Assets (ROA)

Reported ROA followed the pattern of net income, starting at a strong 5.44% in 2020, then declining sharply to 3.46% in 2021. It improved somewhat to 4.63% in 2022, before gradually falling again to 2.2% in 2024. This downward trend indicates diminishing efficiency in asset utilization to generate profits over the analyzed timeframe.

Adjusted Net Income

The adjusted net income declined steadily from 8,167 million US dollars in 2020 to 3,206 million in 2024. The decline was more consistent compared to shareholders' net income, with no intermediate improvement after 2021. This suggests that adjustments made to the net income further highlight the erosion in profitability.

Adjusted Total Assets

Adjusted total assets displayed a pattern similar to reported total assets, declining from 155,451 million in 2020 to 143,932 million in 2022, and subsequently increasing to 154,988 million in 2024. The slight differences compared to reported assets reflect accounting adjustments but confirm overall asset stability with moderate fluctuations.

Adjusted Return on Assets (ROA)

The adjusted ROA decreased steadily from 5.25% in 2020 to 2.07% in 2024. The decline was continuous without the recovery observed in the reported ROA in 2022. This consistent downturn underscores reduced effectiveness in generating returns on adjusted asset base across the period.

Summary of Trends

The analysis reveals a clear downward trend in profitability metrics, including both reported and adjusted net income and ROA. Despite relative stability in asset levels, the company’s ability to generate profits from its asset base has weakened considerably from 2020 through 2024. The partial recovery seen in some reported metrics in 2022 was not sustained. The divergence between reported and adjusted figures suggests that underlying operating conditions may be less favorable than the reported data alone indicate.