Cigna’s SG&A (Expense) ratio has been around 7.5% of revenue the last two years. 2024 is projected to be ~6.1% based on the recent earnings release. This represents a 20% reduction for a company where headcount is the largest SG&A expense.
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WILL ANYONE THINK OF THE CASE MANAGERS?!
“But how will this impact case managers?”
Finding this made it worth reading dozens of pages.
Okay, ~6.1 is 20% less than 7.5, so that's why the OP said 20% reduction.
I literally laughed out loud. And I work in CM.
“ But how will this impact case managers?”
From here, how do you get to 20 percent reduction?
- 1 is 20% less than 7.5
Not a finance person, simply trying to follow the math.
An SG&A reduction to 6.1 percent from 7.5 percent means we should expect 1.4 percent trimmed from SG&A.
A callout that above is SG&A stated as a percentage of revenue.
Using 2024 revenue forecast of 235B, we could expect a reduction of 3.29B in SG&A.
From here, how do you get to 20 percent reduction?
It's very clear that no one knows anything until it actually happens.
they already did a huge layoff oct/nov which is why i assume the 2024 projections already came in lower
But how will this impact case managers?
Wow that’s solid information. Thank you. Do you know if that means 20% reduction in headcount ?