Interpublic Group of Companies Inc (IPG)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,199,900 | 1,271,500 | 1,517,800 | 1,512,100 | 1,517,900 | 1,353,300 | 1,285,400 | 1,323,800 | 1,381,200 | 1,420,900 | 1,436,800 | 1,484,200 | 1,492,300 | 1,482,300 | 1,415,300 | 1,156,300 | 967,300 | 969,000 | 960,700 | 1,093,400 |
| Interest expense (ttm) | US$ in thousands | 229,900 | 237,000 | 240,800 | 246,100 | 239,100 | 227,100 | 213,300 | 191,100 | 174,700 | 163,300 | 161,300 | 162,900 | 173,100 | 181,900 | 189,800 | 197,000 | 192,200 | 193,600 | 192,500 | 194,300 |
| Interest coverage | 5.22 | 5.36 | 6.30 | 6.14 | 6.35 | 5.96 | 6.03 | 6.93 | 7.91 | 8.70 | 8.91 | 9.11 | 8.62 | 8.15 | 7.46 | 5.87 | 5.03 | 5.01 | 4.99 | 5.63 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,199,900K ÷ $229,900K
= 5.22
Interpublic Group of Companies Inc has shown a generally stable interest coverage ratio over the past few years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to June 30, 2022, the interest coverage ratio fluctuated in the range of 4.99 to 9.11, showing some variability but generally staying above 5, which indicates that the company is generating enough operating income to cover its interest expenses comfortably.
However, in the later periods from September 30, 2022, to December 31, 2024, the interest coverage ratio decreased, ranging from 5.22 to 8.70. This reduction could signify either an increase in interest expenses or a decrease in operating income during these periods, affecting the company's ability to cover its interest payments.
Overall, while the company's interest coverage ratio has fluctuated, it remained above 5 for most of the periods, indicating a healthy ability to meet its interest obligations. However, the decreasing trend in the later periods should be monitored to ensure the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024