The Cigna Group stock research
FY2023 Q4
The Cigna Group (CI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
- The improvement in gross margin compared to the same quarter last year is the strongest observable driver, as gross profit grew faster than cost of revenue.
- Compared to the prior quarter, gross margin was slightly lower, with revenue and cost of revenue both increasing. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.0%
Gross profit
$15.9B
Revenue
$51.1B
Cost of revenue
$35.3B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $46.5B | $15.1B | $31.5B | 32.4% |
| Jun 30, 2023 | $48.6B | $15.1B | $33.4B | 31.2% |
| Sep 30, 2023 | $49.0B | $15.4B | $33.6B | 31.4% |
| Dec 31, 2023 | $51.1B | $15.9B | $35.3B | 31.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.4 pts
Year-over-year change
Dec 31, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin compared to the same quarter last year is the strongest observable driver, as gross profit grew faster than cost of revenue.
Compared to the prior quarter, gross margin was slightly lower, with revenue and cost of revenue both increasing. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may influence future gross margin stability.