The Cigna Group (The Cigna Group) Interest Coverage

: 1.52 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. The Cigna Group's EBIT for the three months ended in Dec. 2023 was $548 Mil. The Cigna Group's Interest Expense for the three months ended in Dec. 2023 was $-360 Mil. The Cigna Group's interest coverage for the quarter that ended in Dec. 2023 was 1.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Cigna Group's Interest Coverage or its related term are showing as below:

CI' s Interest Coverage Range Over the Past 10 Years
Min: 4.81 Med: 8.02 Max: 15.31
Current: 4.81

CI's Interest Coverage is ranked worse than
76.92% of 13 companies
in the Healthcare Plans industry
Industry Median: 7.86 vs CI: 4.81

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Cigna Group Interest Coverage Historical Data

The historical data trend for The Cigna Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

The Cigna Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.91

8.56

6.62

7.84

4.81

The Cigna Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																5.19	5.47	6.19	6.04	1.52

Competitive Comparison

For the Healthcare Plans subindustry, The Cigna Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Cigna Group Interest Coverage Distribution

For the Healthcare Plans industry and Healthcare sector, The Cigna Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Cigna Group's Interest Coverage falls into.

The Cigna Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Cigna Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, The Cigna Group's Interest Expense was $-1,446 Mil. Its EBIT was $6,959 Mil. And its Long-Term Debt & Capital Lease Obligation was $28,155 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6959	/	-1446
	=	4.81

The Cigna Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Cigna Group's Interest Expense was $-360 Mil. Its EBIT was $548 Mil. And its Long-Term Debt & Capital Lease Obligation was $28,155 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	548	/	-360
	=	1.52

The higher the ratio, the stronger the company's Financial Strength is.

The Cigna Group (NYSE:CI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Cigna Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Cigna Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

The Cigna Group (The Cigna Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » The Cigna Group (NYSE:CI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CI:Mexico CGN:Germany CGN:Germany C1IC34:Brazil CIGN:Austria

Address

900 Cottage Grove Road, Bloomfield, CT, USA, 06002

Website

https://www.cigna.com

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, but it also operates in government programs, such as Medicare Advantage. The company operates mostly in the U.S. with 18 million U.S. medical members covered as of the end of June 2023.

Executives

Cynthia Ryan	officer: EVP, CHRO	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192
Nicole S Jones	officer: EVP, General Counsel	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Agoglia Hoeltzel Mary T	officer: VP & Chief Accounting Officer	1601 CHESTNUT STREET, TWO LIBERTY PLACE, PHILADELPHIA PA 19192
Brian C Evanko	officer: President Government Business	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Everett Neville	officer: EVP, Strategy and Business Dev	ONE EXPRESS WAY, ST. LOUIS MO 63121
Paul A Sanford	officer: EVP Operations	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192
Phillip Ozuah	director	30 HUDSON STREET, FLOOR 33, JERSEY CITY NJ 07302
Donna F Zarcone	director	C/O HARLEY DAVIDSON, 3700 W. JUNEAU AVE, MILWAUKEE WI 53208
Michael W Triplett	officer: President, US Markets	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Elder Granger	director	5176 S. LEWISTON WAY, CENTENNIAL CO 80015
David Cordani	director, officer: President & CEO	THE CIGNA GROUP, 900 COTTAGE GROVE ROAD, BLOOMFIELD CT 06002
Jason D Sadler	officer: Pres., International Markets	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Eric P Palmer	officer: EVP, Chief Financial Officer	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
David J Brailer	officer: EVP & Chief Health Officer	4 PRESIDIO TERRACE, SAN FRANCISCO CA 94118
Charles Berg	officer: Pres, Govt Programs & Sr Advsr	48 MONROE TURNPIKE, TRUMBULL CT 06611