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CI (The Cigna Group) ROA % : 4.01% (As of Jun. 2024)


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What is The Cigna Group ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Cigna Group's annualized Net Income for the quarter that ended in Jun. 2024 was $6,192 Mil. The Cigna Group's average Total Assets over the quarter that ended in Jun. 2024 was $154,283 Mil. Therefore, The Cigna Group's annualized ROA % for the quarter that ended in Jun. 2024 was 4.01%.

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

CI' s ROA % Range Over the Past 10 Years
Min: 2.44   Med: 3.59   Max: 5.44
Current: 2.44

During the past 13 years, The Cigna Group's highest ROA % was 5.44%. The lowest was 2.44%. And the median was 3.59%.

CI's ROA % is ranked worse than
57.14% of 21 companies
in the Healthcare Plans industry
Industry Median: 2.52 vs CI: 2.44

The Cigna Group ROA % Historical Data

The historical data trend for The Cigna Group's ROA % 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.

* Premium members only.

The Cigna Group ROA % Chart

The Cigna Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.30 5.44 3.46 4.49 3.48

The Cigna Group Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.92 3.76 2.72 -0.72 4.01

Competitive Comparison of The Cigna Group's ROA %

For the Healthcare Plans subindustry, The Cigna Group's ROA %, along with its competitors' market caps and ROA % 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's ROA % Distribution in the Healthcare Plans Industry

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

* The bar in red indicates where The Cigna Group's ROA % falls into.



The Cigna Group ROA % Calculation

The Cigna Group's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=5164/( (143885+152761)/ 2 )
=5164/148323
=3.48 %

The Cigna Group's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=6192/( (153119+155446)/ 2 )
=6192/154282.5
=4.01 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


The Cigna Group  (NYSE:CI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2024 )
=Net Income/Total Assets
=6192/154282.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(6192 / 241900)*(241900 / 154282.5)
=Net Margin %*Asset Turnover
=2.56 %*1.5679
=4.01 %

Note: The Net Income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


The Cigna Group ROA % Related Terms

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


The Cigna Group Business Description

Address
900 Cottage Grove Road, Bloomfield, CT, USA, 06002
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy 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, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.
Executives
Delaney William J Iii director 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Michael W Triplett officer: President, US Markets 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Nicole S Jones officer: EVP, General Counsel 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Brian C Evanko officer: President Government Business 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Elder Granger director 5176 S. LEWISTON WAY, CENTENNIAL CO 80015
Noelle K Eder officer: EVP, CIO 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Agoglia Hoeltzel Mary T officer: VP & Chief Accounting Officer 1601 CHESTNUT STREET, TWO LIBERTY PLACE, PHILADELPHIA PA 19192
David Cordani director, officer: President & CEO THE CIGNA GROUP, 900 COTTAGE GROVE ROAD, BLOOMFIELD CT 06002
Eric P Palmer officer: EVP, Chief Financial Officer 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Cynthia Ryan officer: EVP, CHRO 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, 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
Jason D Sadler officer: Pres., International Markets 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192