Interpublic Group of Companies Inc (IPG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.83 | 4.89 | 5.17 | 5.65 | 6.23 |
Interpublic Group of Companies Inc has consistently maintained a strong solvency position over the five-year period examined. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all at 0.00 across all years from 2020 to 2024, indicating that the company's total debt levels relative to its assets, capital, and equity are effectively zero. This suggests that the company relies very little on debt to finance its operations and investments.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 6.23 in 2020 to 4.83 in 2024. The decreasing trend in the financial leverage ratio indicates that the company is decreasing its reliance on debt financing over the years, which is generally positive for solvency as it indicates lower financial risk and better ability to meet its financial obligations.
Overall, the solvency ratios of Interpublic Group of Companies Inc demonstrate a strong financial position with minimal debt levels and decreasing reliance on debt financing, highlighting the company's ability to efficiently manage its financial resources and maintain robust financial health over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.56 | 7.25 | 8.54 | 8.45 | 5.24 |
Interpublic Group of Companies Inc's interest coverage has shown a positive trend over the years, increasing from 5.24 in 2020 to 8.45 in 2021, and further to 8.54 in 2022. This indicates the company's ability to meet its interest obligations comfortably with its operating income. However, there was a slight dip in 2023 to 7.25, which could be a point of concern for stakeholders. In 2024, the interest coverage ratio improved to 5.56, which is still above the industry average but lower than the previous years. Overall, the company's interest coverage reflects a healthy financial position, but monitoring future changes in the ratio will be important for assessing its ability to service debt obligations effectively.