Cigna Corp CIGNA Bond
| CI Stock | USD 333.01 4.56 1.39% |
Cigna Corp holds a debt-to-equity ratio of 0.738. As of now, Cigna Corp's Long Term Debt is increasing as compared to previous years. The Cigna Corp's current Debt To Equity is estimated to increase to 0.70, while Short and Long Term Debt is projected to decrease to under 2.5 B. With a high degree of financial leverage come high-interest payments, which usually reduce Cigna Corp's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Cigna Corp's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Cigna Corp's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Cigna Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Cigna Corp's stakeholders.
For most companies, including Cigna Corp, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Cigna Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Cigna Corp's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 2.2004 | Book Value 150.608 | Operating Margin 0.0274 | Profit Margin 0.0132 | Return On Assets 0.028 |
Cigna |
Given the importance of Cigna Corp's capital structure, the first step in the capital decision process is for the management of Cigna Corp to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Cigna Corp to issue bonds at a reasonable cost.
| Popular Name | Cigna Corp CIGNA P |
| Specialization | Health Care Equipment & Services |
| Equity ISIN Code | US1255231003 |
| Bond Issue ISIN Code | US125523CL22 |
| S&P Rating | Others |
| Maturity Date | Others |
| Issuance Date | Others |
| Coupon | 2.4 % |
Cigna Corp Outstanding Bond Obligations
| CIGNA P 7875 | US125509AZ26 | Details | |
| CIGNA P 305 | US125509BV03 | Details | |
| CIGNA P 325 | US125509BU20 | Details | |
| CIT Group 6125 | US125581GX07 | Details | |
| CIGNA P | US125523AG54 | Details | |
| CIGNA P | US125523AH38 | Details | |
| CIGNA P | US125523AK66 | Details | |
| CIGNA P | US125523AJ93 | Details | |
| CIGNA P | US125523BK57 | Details | |
| US125523BH29 | US125523BH29 | Details | |
| US125523AX87 | US125523AX87 | Details | |
| CIGNA P | US125523AV22 | Details | |
| US125523AZ36 | US125523AZ36 | Details | |
| CIGNA P | US125523CM05 | Details | |
| CIGNA P | US125523CJ75 | Details | |
| CIGNA P | US125523CK49 | Details | |
| CIGNA P | US125523CL22 | Details | |
| CIGNA P | US125523CF53 | Details | |
| US125523CV04 | US125523CV04 | Details | |
| CI 54 15 MAR 33 | US125523CS74 | Details | |
| CIGNA P | US125523CQ19 | Details | |
| CI 5685 15 MAR 26 | US125523CR91 | Details | |
| CIGNA P | US125523CP36 | Details | |
| CIGNA P | US125523BZ27 | Details | |
| US125523CD06 | US125523CD06 | Details | |
| CIGNA P | US125523CB40 | Details | |
| US125581AY44 | US125581AY44 | Details |
Understaning Cigna Corp Use of Financial Leverage
Understanding the composition and structure of Cigna Corp's debt gives an idea of how risky is the capital structure of the business and if it is worth investing in it. The degree of Cigna Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 31.5 B | 33.1 B | |
| Net Debt | 23.7 B | 24.8 B | |
| Short Term Debt | 2.9 B | 3 B | |
| Long Term Debt | 28.2 B | 29.6 B | |
| Short and Long Term Debt | 2.8 B | 2.5 B | |
| Long Term Debt Total | 32.3 B | 24.1 B | |
| Net Debt To EBITDA | 2.31 | 1.26 | |
| Debt To Equity | 0.67 | 0.70 | |
| Interest Debt Per Share | 109.94 | 115.44 | |
| Debt To Assets | 0.20 | 0.21 | |
| Long Term Debt To Capitalization | 0.38 | 0.19 | |
| Total Debt To Capitalization | 0.40 | 0.21 | |
| Debt Equity Ratio | 0.67 | 0.70 | |
| Debt Ratio | 0.20 | 0.21 | |
| Cash Flow To Debt Ratio | 0.38 | 0.67 |
Currently Active Assets on Macroaxis
Check out the analysis of Cigna Corp Fundamentals Over Time. For more detail on how to invest in Cigna Stock please use our How to Invest in Cigna Corp guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cigna Corp. If investors know Cigna will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cigna Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.45) | Dividend Share 5.43 | Earnings Share 10.56 | Revenue Per Share 808.024 | Quarterly Revenue Growth 0.28 |
The market value of Cigna Corp is measured differently than its book value, which is the value of Cigna that is recorded on the company's balance sheet. Investors also form their own opinion of Cigna Corp's value that differs from its market value or its book value, called intrinsic value, which is Cigna Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cigna Corp's market value can be influenced by many factors that don't directly affect Cigna Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cigna Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cigna Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cigna Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.