Interpublic Group of Companies Inc (IPG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.83 | 4.59 | 4.44 | 4.52 | 4.89 | 4.63 | 4.64 | 4.68 | 5.17 | 4.96 | 5.02 | 5.13 | 5.65 | 5.61 | 5.66 | 5.69 | 6.23 | 5.90 | 6.08 | 6.49 |
Interpublic Group of Companies Inc has consistently maintained a strong solvency position over the analyzed periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, indicating that the company has no long-term debt in relation to its assets, capital, and equity. This signifies a low financial risk and a healthy balance sheet structure.
The Financial leverage ratio, which measures the company's debt levels in relation to its equity, has shown a declining trend from 6.49 in March 2020 to 4.83 in December 2024. This indicates a reduction in the company's reliance on debt financing over the years, leading to a stronger financial position and lower financial risk.
In conclusion, Interpublic Group of Companies Inc demonstrates excellent solvency ratios, with minimal debt levels and a decreasing trend in financial leverage, reflecting a sound financial health and a strong ability to meet its long-term obligations without jeopardizing its stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interpublic Group of Companies Inc's interest coverage ratio has shown fluctuations over the reported periods. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
From March 31, 2020, to December 31, 2022, the interest coverage ratio improved steadily from 5.63 to 7.91. This indicates the company's increasing ability to cover its interest expenses with operating income during this period.
However, from March 31, 2023, the interest coverage ratio started declining, reaching a low of 5.22 by December 31, 2024. This downward trend suggests that the company may be facing challenges in generating enough operating income to cover its interest expenses efficiently.
Overall, while the interest coverage ratio showed improvement from 2020 to 2022, the subsequent decline highlights the importance for Interpublic Group of Companies Inc to carefully manage its financial resources and operations to ensure it can continue to meet its interest obligations effectively in the future.