3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Cigna Group's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 29.55%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Cigna Group's 3-Year ROIIC % or its related term are showing as below:
CI's 3-Year ROIIC % is ranked better than 70% of 20
companies
in the Healthcare Plans industry
Industry Median: 9.575
vs CI: 29.55
The Cigna Group 3-Year ROIIC % Historical Data
The historical data trend for The Cigna Group's 3-Year ROIIC % 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.
Competitive Comparison of The Cigna Group's 3-Year ROIIC %
For the Healthcare Plans subindustry, The Cigna Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, The Cigna Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Cigna Group's 3-Year ROIIC % falls into.
The Cigna Group 3-Year ROIIC % Calculation
The Cigna Group's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 6780.8496 (Dec. 2023) - 9612.2166 (Dec. 2020) )
/
( 116375.35 (Dec. 2023) - 125956.5 (Dec. 2020) )
=
-2831.367
/
-9581.15
=
29.55%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Cigna Group (NYSE:CI) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Cigna Group 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of The Cigna Group's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Cigna Group (The Cigna Group) Business Description
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.
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