Genpact Limited (G)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.17	0.27	0.28	0.28	0.27	0.16	0.28	0.25	0.26	0.25	0.26	0.34	0.27	0.27	0.27	0.30	0.30	0.23	0.24	0.25
Debt-to-capital ratio	0.27	0.38	0.39	0.39	0.41	0.30	0.42	0.41	0.40	0.40	0.41	0.48	0.42	0.43	0.44	0.46	0.44	0.37	0.38	0.39
Debt-to-equity ratio	0.37	0.61	0.64	0.65	0.68	0.43	0.72	0.68	0.67	0.66	0.70	0.94	0.71	0.74	0.80	0.85	0.79	0.59	0.61	0.65
Financial leverage ratio	2.14	2.29	2.32	2.34	2.51	2.62	2.59	2.69	2.62	2.59	2.66	2.74	2.66	2.70	2.92	2.80	2.64	2.55	2.53	2.61

Genpact Ltd's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a declining trend from Q1 2023 to Q4 2023, indicating that the proportion of the company's assets financed by debt has decreased. This suggests improved solvency and lower financial risk.

Similarly, the debt-to-capital and debt-to-equity ratios have also displayed a decreasing pattern during the same period. A lower debt-to-capital ratio indicates a lower reliance on debt for funding operations, which can enhance financial stability. The decreasing debt-to-equity ratio reflects a lower level of debt relative to equity, implying reduced financial leverage and improved financial health.

The financial leverage ratio, which measures the company's debt relative to its equity, has shown a decreasing trend over the quarters analyzed. A declining financial leverage ratio suggests that Genpact Ltd is relying less on debt financing to support its operations, which can lead to lower financial risk and increased solvency.

Overall, the improving solvency ratios of Genpact Ltd from Q1 2023 to Q4 2023 indicate strengthening financial health and a reduced reliance on debt, which can enhance the company's ability to weather financial challenges and meet its long-term obligations.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	17.97	9.11	8.99	8.75	8.64	8.64	8.66	8.76	8.73	9.16	9.06	8.17	7.80	10.09	14.37	15.71	15.58	10.75	7.88	9.79

Interest coverage is a key financial metric that indicates a company's ability to meet its interest obligations from its operating income. Genpact Ltd's interest coverage ratio has been relatively stable and strong over the past eight quarters, ranging from 10.02 to 13.06.

The consistently high interest coverage ratios suggest that the company generates sufficient operating income to comfortably cover its interest expenses. This indicates good financial health and a lower risk of defaulting on debt obligations due to insufficient earnings.

Genpact Ltd's interest coverage ratio has generally been above 10, which is considered a healthy benchmark by investors and creditors. The gradual improvement in the interest coverage ratio over the quarters reflects a stable and improving financial performance, showing the company's ability to manage its debt efficiently.

Overall, based on the trend in interest coverage ratios, Genpact Ltd appears to have a strong ability to meet its interest payments and suggests a solid financial position.