Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Solvency Ratios (Summary)
Cigna Group, solvency ratios
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).
- Debt Ratios Trends
- The debt to equity ratio demonstrates a moderate increase over the five-year period, rising from 0.65 in 2020 to 0.78 in 2024. Including operating lease liabilities does not significantly alter this trend, showing a comparable increase. Similarly, the debt to capital ratio remains relatively stable initially, fluctuating between 0.40 and 0.42 up to 2023, before rising to 0.44 in 2024. These patterns, consistent with the debt to capital ratios that consider operating lease liabilities, suggest a gradual increase in the leverage relative to capital.
- The debt to assets ratio maintains a steady range, approximately 0.20 to 0.22, throughout the observed years. The inclusion of operating lease liabilities causes minimal variation but follows the same steady trend. This indicates that, relative to total assets, outstanding debt obligations have not experienced significant changes.
- Financial Leverage
- Financial leverage exhibits an increasing trajectory over the period, starting at 3.09 in 2020 and reaching 3.80 in 2024. The increase in financial leverage suggests a growing use of debt financing relative to equity, which aligns with the upward movement in debt to equity ratios noted earlier.
- Interest and Fixed Charge Coverage
- Interest coverage ratios show a downward trend, decreasing from 8.76 in 2020 to 4.51 in 2024. Fixed charge coverage mirrors this pattern, declining from 7.84 to 4.51 over the same timeframe. These declines indicate that earnings available to cover interest and fixed charges have been diminishing relative to the expenses, potentially signaling increased financial risk or lower operating profitability.
- Overall Analysis
- The data reveals a gradual rise in leverage, with an increasing proportion of debt in the capital structure, especially notable in the debt to equity and financial leverage ratios. Despite the relatively stable debt to assets ratios, the declining interest and fixed charge coverage ratios highlight a weakening ability to meet fixed financial obligations. This combination suggests an increasing reliance on debt and possibly tightening financial flexibility over the period analyzed.
Debt Ratios
Coverage Ratios
Debt to Equity
Cigna Group, debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Equity, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a generally stable trend with minor fluctuations over the observed period. Beginning at 32,919 million USD in 2020, it increased slightly to 33,670 million USD in 2021, followed by a decline to 31,093 million USD in 2022. The debt marginally decreased to 30,930 million USD in 2023 before rising again to 31,972 million USD in 2024. Overall, total debt remained within a narrow range without significant volatility.
- Shareholders’ Equity
- The shareholders’ equity demonstrated a consistent downward trend throughout the five-year span. Starting from 50,321 million USD in 2020, it decreased to 47,112 million USD in 2021 and continued declining to 44,872 million USD in 2022. A slight rebound occurred in 2023 with an increase to 46,223 million USD. However, the equity dropped sharply to 41,033 million USD in 2024. This pattern indicates a weakening equity base overall.
- Debt to Equity Ratio
- The debt to equity ratio showed variability with a trend towards an increase in financial leverage. The ratio began at 0.65 in 2020, rose to 0.71 in 2021, and slightly decreased to 0.69 in 2022. It further decreased to 0.67 in 2023 before increasing notably to 0.78 in 2024. This indicates a relative rise in debt compared to equity in the most recent year, reflecting higher leverage and potentially increased financial risk.
- Overall Analysis
- The financial data reflect a stable but slightly fluctuating debt position alongside a declining equity base. The increasing debt to equity ratio in the latest year suggests a shift towards greater leverage. This trend may imply increased risk exposure or a strategic choice to finance operations more through debt rather than equity. The decline in shareholders’ equity warrants attention due to its impact on the company’s financial stability and capital structure.
Debt to Equity (including Operating Lease Liability)
Cigna Group, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | ||||||
| Operating lease liabilities (included in Other non-current liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
Total debt exhibited a slight fluctuation over the five-year period. Initially, it increased from approximately $33.6 billion in 2020 to about $34.3 billion in 2021. Subsequently, a decline occurred through 2022 and 2023, reaching a low near $31.4 billion before a modest rise to roughly $32.0 billion in 2024. This pattern indicates a generally stable debt level with minor fluctuations rather than significant growth or reduction.
- Shareholders’ Equity
-
Shareholders’ equity showed a downward trend across the observed period. Starting at approximately $50.3 billion in 2020, it decreased consistently year-over-year, declining to about $47.1 billion in 2021 and further down to $44.9 billion in 2022. A slight recovery to $46.2 billion occurred in 2023, yet the equity value dropped significantly to approximately $41.0 billion in 2024. The overall trajectory suggests erosion in equity capital, potentially indicative of accumulated losses or dividend payments surpassing earnings retention.
- Debt to Equity Ratio (including operating lease liability)
-
The debt to equity ratio presented a gradual increase during the period, moving from 0.67 in 2020 to 0.73 in 2021, representing a modest rise in leverage. It then slightly decreased to 0.70 in 2022 and further to 0.68 in 2023, before climbing again to its highest point of 0.78 in 2024. This fluctuating but upward trending leverage ratio suggests that debt levels grew relative to shareholders’ equity, particularly in 2024, which may enhance financial risk.
- Overall Analysis
-
The analysis points to a scenario where total debt remained relatively stable with minor fluctuations, whereas shareholders’ equity declined considerably. Consequently, the leverage ratio increased over time, particularly by 2024. This could imply a higher reliance on debt financing and potentially reduced cushion for creditors. The trend warrants monitoring to assess the impact on financial stability and to ensure that leverage remains within manageable limits.
Debt to Capital
Cigna Group, debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Shareholders’ equity | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Capital, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt of the entity exhibited minor fluctuations over the five-year period. Initially, the total debt increased slightly from 32,919 million US dollars in 2020 to 33,670 million in 2021. Subsequently, it declined to 31,093 million in 2022 and further to 30,930 million in 2023, before experiencing a modest rise to 31,972 million in 2024. Overall, the debt level has been relatively stable, with a slight downward trend during the middle years and a small uptick in the final year observed.
- Total Capital
-
Total capital demonstrated a gradual decline across the reported years. Starting at 83,240 million US dollars in 2020, it decreased to 80,782 million in 2021, followed by a more pronounced reduction to 75,965 million in 2022. Although a slight increase occurred in 2023, raising the figure to 77,153 million, it declined again to 73,005 million in 2024. This pattern indicates an overall contraction in total capital during the period under review.
- Debt to Capital Ratio
-
The debt to capital ratio remained relatively steady with minor variations between 0.40 and 0.44 over the time frame. Starting at 0.40 in 2020, it rose slightly to 0.42 in 2021, then decreased marginally to 0.41 in 2022, returned to 0.40 in 2023, and increased again to 0.44 in 2024. Despite fluctuating within a narrow range, the final year's increase suggests a modest rise in leverage relative to capital.
Debt to Capital (including Operating Lease Liability)
Cigna Group, debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | ||||||
| Operating lease liabilities (included in Other non-current liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ equity | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt level exhibited relatively minor fluctuations over the five-year period. Beginning at $33,562 million in 2020, the debt increased slightly to $34,265 million in 2021, then decreased to $31,553 million in 2022. It remained nearly stable in 2023 at $31,375 million before rising modestly to $31,972 million in 2024. Overall, the total debt trend suggests a degree of stability with small year-to-year variations but no significant upward or downward movement.
- Total capital (including operating lease liability)
- Total capital demonstrated a gradual decline throughout the period, starting from $83,883 million in 2020 and decreasing to $73,005 million by 2024. The decline was relatively steady, although there was a slight increase observed in 2023, where total capital moved up from $76,425 million in 2022 to $77,598 million. Despite this temporary uptick, the overall trajectory is downward, indicating a reduction in the capital base over the five years.
- Debt to capital (including operating lease liability)
- The debt-to-capital ratio fluctuated slightly but remained close to the 0.40 level during the period. It increased from 0.40 in 2020 to a peak of 0.42 in 2021, decreased to 0.41 in 2022, then returned to 0.40 in 2023 before rising to 0.44 in 2024. The upward movement in 2024, reaching the highest ratio in the span, indicates that debt constituted a larger proportion of the company's capital structure in that year compared to earlier periods. Overall, the ratio's relative stability with a slight upward trend at the end suggests moderate leverage with a cautious increase in financial risk.
Debt to Assets
Cigna Group, debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Assets, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited relative stability over the five-year period, starting at approximately 32,919 million USD at the end of 2020 and fluctuating modestly to around 31,972 million USD by the end of 2024. Notably, there was a slight peak in 2021 at 33,670 million USD before a downward trend through 2023, followed by a minor increase in 2024.
- Total Assets
- Total assets showed some variability during the period. Starting at 155,451 million USD at the end of 2020, assets declined moderately to 143,932 million USD by the end of 2022, indicating a reduction of approximately 7.4%. Subsequently, there was a recovery trend, with assets increasing to 152,761 million USD in 2023 and further to 155,881 million USD by 2024, almost reaching the initial level of 2020.
- Debt to Assets Ratio
- The debt to assets ratio remained relatively constant, fluctuating narrowly between 0.20 and 0.22 throughout the period. The ratio peaked at 0.22 in 2021 and 2022, corresponding with the period of higher total debt and lower total assets. A slight improvement in leverage ratio is observed in 2023 with a decrease to 0.20, followed by a marginal increase back to 0.21 in 2024. Overall, the company's leverage position has been stable without significant deviations.
- Summary Insights
- The data indicate a stable capital structure with a consistent proportion of debt relative to assets. The temporary dip in total assets around 2022 and the concurrent peak in debt levels slightly increased the leverage ratio during that year. However, the subsequent recovery in asset base and modest adjustment in debt levels restored the company's financial ratios to a near initial position. This pattern suggests a resilient asset base with manageable debt obligations over the examined timeframe.
Debt to Assets (including Operating Lease Liability)
Cigna Group, debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt | ||||||
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | ||||||
| Operating lease liabilities (included in Other non-current liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt amount remained relatively stable over the five-year period. Beginning at approximately 33,562 million US dollars in 2020, it increased slightly to 34,265 million in 2021 before trending downward to 31,553 million in 2022 and 31,375 million in 2023. There was a minor uptick to 31,972 million in 2024, suggesting some fluctuation but overall maintenance of a consistent debt level.
- Total Assets
- Total assets exhibited a slight decline from 155,451 million US dollars in 2020 to a low of 143,932 million in 2022. Following this decrease, assets recovered progressively, reaching 152,761 million in 2023 and further increasing to 155,881 million by the end of 2024. This indicates a period of contraction followed by renewed growth in asset base.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio maintained a relatively steady value around 0.22 across the years 2020 to 2022. From 2023 onwards, it declined modestly to 0.21 and remained at that level through 2024. This slight decrease in leverage ratio reflects the combination of stabilized or slightly reduced debt along with recovering asset levels, contributing to a marginally stronger balance sheet position in terms of leverage.
Financial Leverage
Cigna Group, financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Financial Leverage, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets exhibited a fluctuating trend over the five-year period. Starting at 155,451 million US dollars in 2020, assets slightly decreased to 154,889 million in 2021. This was followed by a more noticeable decline to 143,932 million in 2022. Subsequently, assets increased again to 152,761 million in 2023 and continued to grow, reaching 155,881 million by the end of 2024. Overall, despite interim decreases, total assets recovered to a level marginally higher than the initial figure by the end of the final period.
- Shareholders’ equity
- Shareholders’ equity demonstrated a consistent downward trend throughout the observed periods. Beginning at 50,321 million US dollars in 2020, equity declined each year to 47,112 million in 2021, 44,872 million in 2022, and 46,223 million in 2023. The most significant drop occurred by the end of 2024 when equity fell to 41,033 million. This persistent decline suggests a reduction in the company's net worth or retained earnings over the time frame analyzed.
- Financial leverage
- The financial leverage ratio increased from 3.09 in 2020 to 3.29 in 2021, indicating a higher level of debt relative to equity. It then slightly decreased to 3.21 in 2022 but rose again to 3.3 in 2023. The most notable increase took place in 2024, where leverage reached 3.8. This upward trend in leverage, particularly the sharp rise in the last year, reflects an increasing reliance on debt financing relative to equity, consistent with the concurrent decline in shareholders’ equity.
Interest Coverage
Cigna Group, interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Shareholders’ net income | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense on long-term and short-term debt | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Interest Coverage, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values exhibit a declining trend over the periods analyzed. Starting at USD 12,268 million in 2020, there is a sharp decrease to USD 8,082 million in 2021. A partial recovery is noted in 2022, with EBIT rising to USD 9,653 million, but this is followed by a continuous decline in 2023 and 2024, reaching USD 6,913 million and USD 6,769 million respectively. This pattern suggests fluctuating operational performance with a generally downward trajectory in the most recent years.
- Interest expense on long-term and short-term debt
- Interest expenses show a slight but steady increase over the period. The expense starts at USD 1,400 million in 2020, decreases marginally to USD 1,300 million in 2021 and remains stable at this level through 2022, before increasing again to USD 1,400 million in 2023 and further to USD 1,500 million in 2024. This gradual rise in interest costs may indicate increasing debt levels or rising interest rates impacting borrowing costs.
- Interest coverage ratio
- The interest coverage ratio illustrates a notable declining trend. Beginning at a relatively strong level of 8.76 in 2020, it declines sharply to 6.22 in 2021, improves slightly to 7.43 in 2022, but then drops significantly to 4.94 in 2023 and further to 4.51 in 2024. This decline reflects reduced EBIT relative to interest expenses, suggesting decreasing capacity to cover interest obligations from operating earnings and potentially increasing financial risk.
Fixed Charge Coverage
Cigna Group, fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Shareholders’ net income | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense on long-term and short-term debt | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease cost | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest expense on long-term and short-term debt | ||||||
| Operating lease cost | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage1 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Health Care | ||||||
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 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibit a declining trend over the observed periods. Starting at 12,458 million US dollars in 2020, the value decreases sharply to 8,252 million in 2021, followed by a slight recovery to 9,777 million in 2022. Subsequently, the earnings decline again to 7,028 million in 2023 and further to 6,769 million in 2024.
- Fixed charges
- Fixed charges demonstrate a relatively stable pattern, with minor fluctuations. The charges decreased from 1,590 million US dollars in 2020 to 1,470 million in 2021 and then continued a slight downward trend to 1,424 million in 2022. However, there was a moderate increase to 1,515 million in 2023, followed by a small decrease to 1,500 million in 2024.
- Fixed charge coverage ratio
- The fixed charge coverage ratio shows a general downward trend across the periods under review. The ratio declines from a high of 7.84 in 2020 to 5.61 in 2021, improves somewhat to 6.87 in 2022, but then decreases noticeably to 4.64 in 2023 and further to 4.51 in 2024. This suggests a weakening ability to cover fixed charges with earnings over time, reflecting the impact of lower earnings before fixed charges and tax combined with steady fixed charges.