Cigna (LIM:CI) Debt-to-EBITDA : 5.89 (As of Dec. 2023)

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What is Cigna Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Cigna's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2,775 Mil. Cigna's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $28,155 Mil. Cigna's annualized EBITDA for the quarter that ended in Dec. 2023 was $5,252 Mil. Cigna's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 5.89.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Cigna's Debt-to-EBITDA or its related term are showing as below:

LIM:CI' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.23 Med: 2.78 Max: 8.9
Current: 3.1

During the past 13 years, the highest Debt-to-EBITDA Ratio of Cigna was 8.90. The lowest was 1.23. And the median was 2.78.

LIM:CI's Debt-to-EBITDA is ranked worse than
66.67% of 15 companies
in the Healthcare Plans industry
Industry Median: 2.47 vs LIM:CI: 3.10

Cigna Debt-to-EBITDA Historical Data

The historical data trend for Cigna's Debt-to-EBITDA 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.

Cigna Debt-to-EBITDA Chart

Cigna Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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3.14

2.18

3.08

2.48

3.10

Cigna Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.22	3.00	2.73	2.62	5.89

Competitive Comparison of Cigna's Debt-to-EBITDA

For the Healthcare Plans subindustry, Cigna's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.

Cigna's Debt-to-EBITDA Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Cigna's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Cigna's Debt-to-EBITDA falls into.

Cigna Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Cigna's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2775	+	28155)	/	9994
	=	3.09

Cigna's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2775	+	28155)	/	5252
	=	5.89

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Cigna (LIM:CI) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Cigna Debt-to-EBITDA Related Terms

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

Cigna (LIM:CI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Cigna Corp (LIM:CI) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

CI:USA CI:Mexico 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.