Interpublic Group of Companies Inc (IPG)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,917,500 | 2,870,700 | 2,908,600 | 2,915,800 | 2,771,900 |
| Total stockholders’ equity | US$ in thousands | 3,942,600 | 3,614,600 | 3,526,000 | 2,895,000 | 2,775,900 |
| Debt-to-capital ratio | 0.43 | 0.44 | 0.45 | 0.50 | 0.50 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,917,500K ÷ ($2,917,500K + $3,942,600K)
= 0.43
Interpublic Group Of Cos., Inc.'s debt-to-capital ratio has shown a decreasing trend from 0.55 in 2019 to 0.45 in 2023. This indicates that the company has been reducing its reliance on debt in relation to its total capital over the years. A lower debt-to-capital ratio suggests that the company has a healthier balance sheet and is less leveraged, which may be viewed positively by investors and creditors. It implies that a significant portion of the company's capital is financed through equity rather than debt, potentially reducing financial risk. Overall, the declining trend in the debt-to-capital ratio of Interpublic Group Of Cos., Inc. reflects a more conservative approach to capital structure and financial management.
Peer comparison
Dec 31, 2023