Interpublic Group of Companies Inc (IPG)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,267,300 | 17,027,300 | 17,110,000 | 16,664,100 | 18,811,700 | 16,875,200 | 17,249,200 | 17,880,900 | 19,909,200 | 17,805,300 | 17,321,700 | 16,349,700 | 18,042,700 | 16,074,700 | 14,896,900 | 16,428,900 | 17,751,900 | 15,997,600 | 16,526,900 | 16,050,000 |
| Total stockholders’ equity | US$ in thousands | 3,942,600 | 3,680,200 | 3,686,300 | 3,559,300 | 3,614,600 | 3,404,600 | 3,436,700 | 3,487,000 | 3,526,000 | 3,171,400 | 3,062,900 | 2,874,000 | 2,895,000 | 2,722,600 | 2,450,400 | 2,532,500 | 2,775,900 | 2,469,000 | 2,423,900 | 2,315,300 |
| Financial leverage ratio | 4.89 | 4.63 | 4.64 | 4.68 | 5.20 | 4.96 | 5.02 | 5.13 | 5.65 | 5.61 | 5.66 | 5.69 | 6.23 | 5.90 | 6.08 | 6.49 | 6.40 | 6.48 | 6.82 | 6.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,267,300K ÷ $3,942,600K
= 4.89
The financial leverage ratio of Interpublic Group Of Cos., Inc. has shown some fluctuation over the past eight quarters. The ratio ranged from a low of 4.63 in Q3 2023 to a high of 5.17 in Q4 2022. This indicates that the company has varied levels of debt relative to its equity during the period analyzed.
Overall, the trend suggests that the company's financial leverage has been gradually decreasing since Q4 2022, when it peaked at 5.17. The subsequent quarters saw a downward trend in the ratio, reaching a low of 4.63 in Q3 2023 before slightly increasing to 4.89 in Q4 2023.
A high financial leverage ratio can indicate a higher level of financial risk as it implies that a significant portion of the company's assets are financed through debt rather than equity. Conversely, a lower ratio may suggest a more conservative capital structure and lower financial risk.
It is important for stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risk effectively. The recent decrease in the ratio could indicate potential improvements in the company's financial structure and risk management. However, further analysis of the company's debt levels and overall financial health would be necessary to fully evaluate its leverage position.
Peer comparison
Dec 31, 2023