Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Cigna Group, short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Cigna Group inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Cigna Group receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Cigna Group payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Cigna Group number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Cigna Group number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Cigna Group number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Cigna Group cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024. |
Inventory Turnover
Cigna Group, inventory turnover 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) | ||||||
| Pharmacy and other service costs | 182,509) | 133,801) | 124,834) | 117,553) | 103,484) | |
| Inventories | 6,692) | 5,645) | 4,777) | 3,722) | 3,165) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 27.27 | 23.70 | 26.13 | 31.58 | 32.70 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.02 | 2.74 | 3.10 | 3.59 | 2.99 | |
| CVS Health Corp. | 17.75 | 16.83 | 14.05 | 13.52 | 11.88 | |
| Intuitive Surgical Inc. | 1.83 | 1.96 | 2.27 | 2.98 | 2.49 | |
| Medtronic PLC | 2.15 | 2.03 | 2.20 | 2.43 | 2.23 | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 24.63 | 22.70 | 21.14 | 21.50 | 18.93 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 10.67 | 10.01 | 10.11 | 10.19 | 9.16 | |
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
Inventory turnover = Pharmacy and other service costs ÷ Inventories
= 182,509 ÷ 6,692 = 27.27
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Cigna Group inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Receivables Turnover
Cigna Group, receivables turnover 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) | ||||||
| Pharmacy revenues | 185,362) | 137,243) | 128,566) | 121,413) | 107,769) | |
| Noninsurance customer receivables | 11,879) | 8,044) | 6,899) | 6,274) | 5,534) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 15.60 | 17.06 | 18.64 | 19.35 | 19.47 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.06 | 6.11 | 7.02 | 6.64 | 5.40 | |
| CVS Health Corp. | 10.16 | 10.12 | 11.79 | 11.91 | 12.32 | |
| Elevance Health Inc. | 18.00 | 18.08 | 18.81 | 20.66 | 19.72 | |
| Intuitive Surgical Inc. | 6.82 | 6.30 | 6.60 | 7.30 | 6.75 | |
| Medtronic PLC | 5.28 | 5.21 | 5.71 | 5.51 | 6.22 | |
| UnitedHealth Group Inc. | 17.66 | 17.27 | 18.22 | 20.07 | 19.86 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 12.67 | 12.57 | 13.78 | 14.11 | 14.06 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.86 | 8.54 | 9.25 | 9.09 | 9.09 | |
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
Receivables turnover = Pharmacy revenues ÷ Noninsurance customer receivables
= 185,362 ÷ 11,879 = 15.60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Cigna Group receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Cigna Group, payables turnover 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) | ||||||
| Pharmacy and other service costs | 182,509) | 133,801) | 124,834) | 117,553) | 103,484) | |
| Pharmacy and other service costs payable | 28,465) | 19,815) | 17,070) | 15,309) | 13,347) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.41 | 6.75 | 7.31 | 7.68 | 7.75 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.46 | 4.19 | 4.15 | 4.21 | 3.80 | |
| CVS Health Corp. | 20.22 | 20.36 | 18.07 | 19.14 | 19.72 | |
| Elevance Health Inc. | 8.10 | 7.72 | 7.47 | 7.59 | 7.75 | |
| Intuitive Surgical Inc. | 14.05 | 12.69 | 13.78 | 14.45 | 18.35 | |
| Medtronic PLC | 4.65 | 4.03 | 4.46 | 4.98 | 4.72 | |
| UnitedHealth Group Inc. | 7.72 | 7.47 | 7.26 | 7.63 | 7.29 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.18 | 9.23 | 8.99 | 9.35 | 9.36 | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.77 | 7.77 | 7.48 | 7.62 | 7.51 | |
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
Payables turnover = Pharmacy and other service costs ÷ Pharmacy and other service costs payable
= 182,509 ÷ 28,465 = 6.41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Cigna Group payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024. |
Working Capital Turnover
Cigna Group, working capital turnover 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) | ||||||
| Current assets | 48,870) | 37,351) | 30,120) | 36,134) | 27,799) | |
| Less: Current liabilities | 57,979) | 48,716) | 41,229) | 43,572) | 36,022) | |
| Working capital | (9,109) | (11,365) | (11,109) | (7,438) | (8,223) | |
| Pharmacy revenues | 185,362) | 137,243) | 128,566) | 121,413) | 107,769) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.42 | 4.54 | 4.48 | 3.87 | 4.06 | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | 7.85 | 7.83 | 8.37 | 7.23 | 6.39 | |
| Intuitive Surgical Inc. | 1.56 | 1.14 | 1.29 | 1.22 | 0.77 | |
| Medtronic PLC | 2.90 | 2.47 | 2.97 | 2.15 | 2.48 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 900.07 | 415.26 | 169.58 | 62.36 | 83.81 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 25.24 | 20.96 | 19.09 | 14.05 | 14.19 | |
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).
1 2024 Calculation
Working capital turnover = Pharmacy revenues ÷ Working capital
= 185,362 ÷ -9,109 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Cigna Group, average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 27.27 | 23.70 | 26.13 | 31.58 | 32.70 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 13 | 15 | 14 | 12 | 11 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 121 | 133 | 118 | 102 | 122 | |
| CVS Health Corp. | 21 | 22 | 26 | 27 | 31 | |
| Intuitive Surgical Inc. | 200 | 186 | 161 | 122 | 147 | |
| Medtronic PLC | 170 | 180 | 166 | 150 | 164 | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 15 | 16 | 17 | 17 | 19 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 34 | 36 | 36 | 36 | 40 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 27.27 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Cigna Group number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Average Receivable Collection Period
Cigna Group, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 15.60 | 17.06 | 18.64 | 19.35 | 19.47 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 23 | 21 | 20 | 19 | 19 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 60 | 60 | 52 | 55 | 68 | |
| CVS Health Corp. | 36 | 36 | 31 | 31 | 30 | |
| Elevance Health Inc. | 20 | 20 | 19 | 18 | 19 | |
| Intuitive Surgical Inc. | 54 | 58 | 55 | 50 | 54 | |
| Medtronic PLC | 69 | 70 | 64 | 66 | 59 | |
| UnitedHealth Group Inc. | 21 | 21 | 20 | 18 | 18 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 29 | 29 | 26 | 26 | 26 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 41 | 43 | 39 | 40 | 40 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 15.60 = 23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Cigna Group number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Cigna Group, operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 13 | 15 | 14 | 12 | 11 | |
| Average receivable collection period | 23 | 21 | 20 | 19 | 19 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 36 | 36 | 34 | 31 | 30 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 181 | 193 | 170 | 157 | 190 | |
| CVS Health Corp. | 57 | 58 | 57 | 58 | 61 | |
| Intuitive Surgical Inc. | 254 | 244 | 216 | 172 | 201 | |
| Medtronic PLC | 239 | 250 | 230 | 216 | 223 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 44 | 45 | 43 | 43 | 45 | |
| Operating Cycle, Industry | ||||||
| Health Care | 75 | 79 | 75 | 76 | 80 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 23 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Cigna Group, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 6.41 | 6.75 | 7.31 | 7.68 | 7.75 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 57 | 54 | 50 | 48 | 47 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 82 | 87 | 88 | 87 | 96 | |
| CVS Health Corp. | 18 | 18 | 20 | 19 | 19 | |
| Elevance Health Inc. | 45 | 47 | 49 | 48 | 47 | |
| Intuitive Surgical Inc. | 26 | 29 | 26 | 25 | 20 | |
| Medtronic PLC | 78 | 91 | 82 | 73 | 77 | |
| UnitedHealth Group Inc. | 47 | 49 | 50 | 48 | 50 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 40 | 40 | 41 | 39 | 39 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 47 | 47 | 49 | 48 | 49 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.41 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Cigna Group number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024. |
Cash Conversion Cycle
Cigna Group, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 13 | 15 | 14 | 12 | 11 | |
| Average receivable collection period | 23 | 21 | 20 | 19 | 19 | |
| Average payables payment period | 57 | 54 | 50 | 48 | 47 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -21 | -18 | -16 | -17 | -17 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 99 | 106 | 82 | 70 | 94 | |
| CVS Health Corp. | 39 | 40 | 37 | 39 | 42 | |
| Intuitive Surgical Inc. | 228 | 215 | 190 | 147 | 181 | |
| Medtronic PLC | 161 | 159 | 148 | 143 | 146 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 4 | 5 | 2 | 4 | 6 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 28 | 32 | 26 | 28 | 31 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 23 – 57 = -21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Cigna Group cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024. |