Interpublic Group of Companies Inc (IPG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,325,800 | 19,267,300 | 18,845,000 | 19,909,200 | 18,042,700 |
| Total stockholders’ equity | US$ in thousands | 3,797,400 | 3,942,600 | 3,647,900 | 3,526,000 | 2,895,000 |
| Financial leverage ratio | 4.83 | 4.89 | 5.17 | 5.65 | 6.23 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,325,800K ÷ $3,797,400K
= 4.83
The financial leverage ratio of Interpublic Group of Companies Inc has exhibited a decreasing trend over the past five years, declining from 6.23 in December 2020 to 4.83 in December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments, which could be perceived positively by investors and creditors. A lower financial leverage ratio suggests that the company has a stronger equity position relative to its debt obligations, potentially lowering its financial risk and increasing its financial stability. Overall, the decreasing trend in the financial leverage ratio reflects a prudent financial management strategy by Interpublic Group of Companies Inc.
Peer comparison
Dec 31, 2024