Interpublic Group of Companies Inc (IPG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,267,300 | 18,811,700 | 19,909,200 | 18,042,700 | 17,751,900 |
| Total stockholders’ equity | US$ in thousands | 3,942,600 | 3,614,600 | 3,526,000 | 2,895,000 | 2,775,900 |
| Financial leverage ratio | 4.89 | 5.20 | 5.65 | 6.23 | 6.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,267,300K ÷ $3,942,600K
= 4.89
Interpublic Group Of Cos., Inc.'s financial leverage ratio has shown a decreasing trend over the past five years, indicating an improving leverage position. The ratio decreased from 6.40 in 2019 to 4.89 in 2023. This suggests that the company has been progressively reducing its reliance on debt to finance its operations and investments. Lower financial leverage ratios generally indicate a lower level of financial risk and a stronger balance sheet. It is important to analyze other financial metrics and factors in conjunction with the financial leverage ratio to gain a comprehensive understanding of the company's overall financial health.
Peer comparison
Dec 31, 2023