Genpact Limited (G)

Solvency ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Debt-to-assets ratio	0.24	0.17	0.27	0.26	0.27
Debt-to-capital ratio	0.33	0.27	0.41	0.40	0.42
Debt-to-equity ratio	0.50	0.37	0.68	0.67	0.71
Financial leverage ratio	2.09	2.14	2.51	2.62	2.66

Genpact Limited's solvency ratios show a generally positive trend over the years based on the provided data. The Debt-to-assets ratio has remained relatively stable, indicating that the company's total debt in relation to its total assets has been manageable. The decreasing trend in this ratio since 2023 suggests a lower reliance on debt to finance its assets.

The Debt-to-capital ratio and Debt-to-equity ratio have also shown a declining trend, indicating a decreasing dependency on debt to fund its operations and investments. This is a positive sign for the company's financial health as lower leverage ratios suggest lower financial risk.

The Financial leverage ratio, which measures the company's reliance on debt financing, has been decreasing steadily over the years. This indicates that Genpact Limited has been reducing its financial leverage and moving towards a more equity-funded structure, which can enhance its financial stability and reduce the risk of default.

Overall, the solvency ratios of Genpact Limited demonstrate a prudent approach to managing its debt levels and financial leverage, which bodes well for its long-term financial health and sustainability.

Coverage ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Interest coverage	14.87	473.62	327.77	200.55	178.78

Interest coverage measures the company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a company is more capable of servicing its debt.

Looking at the trend in Genpact Limited's interest coverage over the years, we see a significant increase from 178.78 in 2020 to 473.62 in 2023. This demonstrates a strong improvement in the company's ability to cover its interest expenses. However, there was a sharp decline to 14.87 in 2024, indicating a potential concern as the company may have faced challenges in meeting its interest obligations during that period.

Overall, Genpact Limited has shown a generally positive trend in its interest coverage ratio over the years, but it is important for investors and analysts to further investigate the sharp decline in 2024 to understand the underlying factors causing this decrease and assess the company's financial health and sustainability.