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Cigna Financial Strength

: 5 (As of Jun. 2022)
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Cigna has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Cigna's Interest Coverage for the quarter that ended in Jun. 2022 was 7.59. Cigna's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.18. Altman Z-Score does not apply to banks and insurance companies.


Cigna Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Cigna's Interest Expense for the months ended in Jun. 2022 was $-301 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $30,984 Mil.

Cigna's Interest Coverage for the quarter that ended in Jun. 2022 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Cigna's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2397 + 30984) / 181540
=0.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Cigna  (NYSE:CI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Cigna has the Financial Strength Rank of 5.


Cigna Financial Strength Related Terms

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


Cigna Business Description

Cigna logo
Address
900 Cottage Grove Road, Bloomfield, CT, USA, 06002
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM services were greatly expanded by its 2018 merger with Express Scripts and are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense. 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 15 million medical members covered as of the end of 2020, but its services extend internationally, covering another 2 million people.
Executives
Berg Charles officer: Pres, Govt Programs & Sr Advsr 48 MONROE TURNPIKE TRUMBULL CT 06611
Sanford Paul A officer: EVP Operations 1601 CHESTNUT STREET SHAREHOLDER SERVICES TL05Z PHILADELPHIA PA 19192
Hathi Neesha director 1601 CHESTNUT STREET SHAREHOLDER SERVICES TL05Z PHILADELPHIA PA 19192
Ryan Cynthia officer: EVP, CHRO 1601 CHESTNUT STREET SHAREHOLDER SERVICES TL05Z PHILADELPHIA PA 19192
Kurian George director C/O NETAPP 495 E. JAVA DRIVE SUNNYVALE CA 94089
Neville Everett officer: EVP, Strategy and Business Dev ONE EXPRESS WAY ST. LOUIS MO 63121
Eder Noelle K officer: EVP, CIO 1680 CAPITAL ONE DRIVE MCLEAN VA 22102
Ross Kimberly A. director C/O AVON PRODUCTS,INC. 1345 AVENUE OF THE AMERICAS` NEW YORK NY 10105-0196
Lauria Kristen officer: EVP Chief Marketing Officer 1601 CHESTNUT STREET SHAREHOLDER SERVICES TL05Z PHILADELPHIA PA 19192
Zollars William D director 10777 BARKLEY PO BOX 7563 OVERLAND PARK KS 66207-0563
Granger Elder director 5176 S. LEWISTON WAY CENTENNIAL CO 80015
Mcclellan Mark B. director THE BROOKINGS INSITUTION 1775 MASSACHUSETTS AVE., NW WASHINGTON DC 20036
Martinez Roman Iv director 90 OARJ AVE 4TH FLOOR GREENPOINT BANK NEW YORK NY 10016
Zarcone Donna F director C/O HARLEY DAVIDSON 3700 W. JUNEAU AVE MILWAUKEE WI 53208
Wiseman Eric C director 319 MEADOWBROOK TERRACE GREENSBORO NC 27408
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