Interpublic Group of Companies Inc (IPG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,279,000 | 1,636,200 | 1,491,500 | 1,462,900 | 1,007,200 |
| Interest expense | US$ in thousands | 229,900 | 225,600 | 174,700 | 173,100 | 192,200 |
| Interest coverage | 5.56 | 7.25 | 8.54 | 8.45 | 5.24 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,279,000K ÷ $229,900K
= 5.56
The interest coverage ratio for Interpublic Group of Companies Inc has shown a positive trend over the past five years. Starting at 5.24 in December 31, 2020, the ratio has steadily increased to reach 8.54 by December 31, 2022. This indicates that the company's ability to cover its interest obligations has improved over the years, reflecting a healthier financial position. Despite a slight dip to 7.25 on December 31, 2023, the ratio remains relatively strong. However, it dropped further to 5.56 by December 31, 2024, showing a potential strain on the company's ability to cover interest expenses. Overall, Interpublic Group of Companies Inc has generally maintained a solid interest coverage position, but recent fluctuations in the ratio may warrant closer monitoring to ensure sustainable financial stability.
Peer comparison
Dec 31, 2024