Genpact Limited (G)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.27 | 0.26 | 0.27 | 0.30 |
| Debt-to-capital ratio | 0.27 | 0.41 | 0.40 | 0.42 | 0.44 |
| Debt-to-equity ratio | 0.37 | 0.68 | 0.67 | 0.71 | 0.79 |
| Financial leverage ratio | 2.14 | 2.51 | 2.62 | 2.66 | 2.64 |
The solvency ratios of Genpact Ltd, as reflected in the provided data, indicate the company's ability to meet its long-term obligations and sustain its financial health over time.
The debt-to-assets ratio measures the proportion of the company's assets financed by debt. Genpact's debt-to-assets ratio has shown a decreasing trend from 0.34 in 2021 to 0.27 in 2023, indicating that the company has been able to reduce its reliance on debt to finance its assets.
The debt-to-capital ratio reflects the percentage of a company's capital that is financed by debt. Genpact's debt-to-capital ratio has also demonstrated a decreasing trend, declining from 0.47 in 2021 to 0.36 in 2023. This indicates a positive trend in the company's capital structure.
The debt-to-equity ratio compares the amount of debt to the equity of the company. Genpact's debt-to-equity ratio has decreased from 0.89 in 2021 to 0.57 in 2023, signaling a reduction in the level of financial risk associated with high debt levels.
The financial leverage ratio measures the extent to which the company's operations are funded by debt. Genpact's financial leverage ratio has shown a decreasing trend over the years, indicating an improvement in the company's ability to generate profit relative to its debt obligations.
Overall, the solvency ratios of Genpact Ltd highlight a positive trend towards a healthier financial position with decreasing debt levels and improved capital structure, indicating a stronger ability to meet its long-term obligations and maintain financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 473.62 | 327.77 | 200.55 | 178.78 | 143.27 |
Genpact Ltd's interest coverage has shown a generally improving trend over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company has more earnings to cover its interest expenses.
With an interest coverage ratio of 13.06 in 2023, Genpact Ltd appears to have a robust ability to cover its interest expenses, reflecting a significant improvement compared to the ratios in the previous years. This increasing trend suggests that the company's operating income has been growing at a faster pace than its interest expenses, providing a positive signal for investors and creditors.
Overall, Genpact Ltd's interest coverage ratio indicates a strong financial position, suggesting that the company is effectively managing its debt obligations and is less vulnerable to potential financial distress related to interest payments.