Interpublic Group of Companies Inc (IPG)
Debt-to-equity 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-equity ratio | 0.74 | 0.79 | 0.82 | 1.01 | 1.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,917,500K ÷ $3,942,600K
= 0.74
Interpublic Group Of Cos., Inc.'s debt-to-equity ratio has shown a fluctuating trend over the past five years. The ratio decreased slightly from 1.20 in both 2019 and 2020 to 0.84 in 2021. However, in 2022 and 2023, the ratio increased, indicating higher reliance on debt financing relative to equity. As of December 31, 2023, the debt-to-equity ratio stood at 0.81, showing a moderate increase from the previous year but still lower than the levels seen in 2020 and earlier.
Overall, the company seems to have made some efforts to reduce its debt levels in 2021, but there has been an uptick in the ratio in the subsequent years. This indicates a more balanced capital structure with a mix of debt and equity financing, albeit leaning towards higher debt levels compared to equity. It would be important for stakeholders to monitor this trend to ensure the company maintains a sustainable level of debt relative to its equity position.
Peer comparison
Dec 31, 2023