Revenue Analysis
Total and Operating Revenue: Over the observed periods, Total Revenue and Operating Revenue exhibited fluctuations. The highest revenue was recorded in December 2023 at $3,356,000,000, with a notable decrease to $2,935,000,000 by March 2024. The lowest was in September 2023 at $1,811,000,000, coinciding with a significant loss in net income.
Gross Profit Margins: Gross profit margins cannot be directly calculated without the cost of goods sold data, which is not provided.
Cost Management
Cost of Revenue: The specifics of the cost of revenue are not detailed; however, total expenses were highest in December 2023, amounting to $1,866,000,000, and slightly lower at $1,982,000,000 in March 2024.
Operating Expense: Operating expenses increase in times of higher revenue but detailed categorization isn’t provided.
Total Expenses: Sees a general increase as total revenue increases, indicating scaling of operations might be influencing costs significantly.
Profitability Analysis
EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) reflects variability, with a low in September 2023 at -$135,000,000 and a peak in December 2023 at $1,504,000,000.
Operating Income: Directly follows trends in EBITDA due to the minimal non-operating expenses and revenues.
Pretax Income: Showed volatile changes, with a significant drop to -$148,000,000 in September 2023, and recovering to $953,000,000 by March 2024.
Net Income Metrics: Net income showed significant volatility, with a net loss of $99,000,000 in September 2023 and an increase to $1,183,000,000 by December 2023.
Cash Flow Indicators
Reconciled Depreciation: Remained stable at around $34,000,000 in multiple quarters, except for a drop to $14,000,000 in September 2023.
Interest Expense: Has been consistently reported at around $13,000,000 to $14,000,000 each quarter, having a minor impact on financials relative to overall revenue and expenses.
Taxation
Tax Rate: The effective tax rate varied, having the highest impact in September 2023 at 0.331.
Tax Provision: Varied significantly with pretax income, notable with a negative tax provision during the September 2023 loss.
Tax Effect of Unusual Items: Remained at zero throughout the observed periods, suggesting no major impact from unusual items in tax calculations.
Shareholder Metrics
Diluted and Basic EPS: Experienced a dramatic drop in September 2023 to -$0.63 for both diluted and basic EPS, compared to height in December 2023 at $7.5 and $7.54 respectively.
Average Shares: The number of shares has remained relatively stable, around 156,900,000 to 158,500,000 shares.
Net Income Available to Common Stockholders: Matches the net income for each period, indicating no preferred dividends or other adjustments affecting common stockholders disproportionately.
Conclusion
CINF’s financial performance over the past year has been marked by considerable variability. While it managed a strong recovery from a loss in September 2023, revenue generation and cost management also showed instability. The company should focus on stabilizing its financial base and reducing the volatility of its earnings to provide better predictability and security for investors.