Interpublic Group of Companies Inc (IPG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.17 | 0.17 | 0.17 | 0.15 | 0.17 | 0.17 | 0.16 | 0.15 | 0.16 | 0.17 | 0.18 | 0.16 | 0.21 | 0.23 | 0.21 | 0.16 | 0.21 | 0.22 | 0.23 |
| Debt-to-capital ratio | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.46 | 0.46 | 0.45 | 0.45 | 0.48 | 0.49 | 0.50 | 0.50 | 0.56 | 0.58 | 0.57 | 0.50 | 0.58 | 0.60 | 0.61 |
| Debt-to-equity ratio | 0.74 | 0.79 | 0.79 | 0.81 | 0.79 | 0.85 | 0.85 | 0.83 | 0.82 | 0.92 | 0.95 | 1.01 | 1.01 | 1.25 | 1.39 | 1.35 | 1.00 | 1.36 | 1.47 | 1.58 |
| 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 |
The solvency ratios of Interpublic Group Of Cos., Inc. provide insights into the company's ability to meet its financial obligations in the long term.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Interpublic's debt-to-assets ratio has been relatively stable around 0.17 to 0.19 over the last eight quarters, indicating that the company uses debt conservatively to fund its assets.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent to which debt is used to finance the company's operations compared to equity. Interpublic's debt-to-capital ratio has also shown stability, hovering around 0.45 to 0.46 over the same period. This suggests that the company's capital structure is balanced between debt and equity financing.
3. Debt-to-equity ratio: The debt-to-equity ratio indicates the extent to which the company relies on debt relative to equity. Interpublic's debt-to-equity ratio has been relatively consistent between 0.80 to 0.87 over the past eight quarters, showing a moderate level of leverage in the company's financial structure.
4. Financial leverage ratio: The financial leverage ratio provides an indication of the company's financial risk and how much the company relies on debt to finance its assets. Interpublic's financial leverage ratio has fluctuated between 4.63 to 5.17 over the last two years, which suggests some variability in the company's leverage position.
Overall, based on the solvency ratios analyzed, Interpublic Group Of Cos., Inc. appears to maintain a moderate level of debt relative to its assets, capital, and equity. The relatively stable ratios imply that the company has a balanced approach to financing its operations, with a manageable level of financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.81 | 6.09 | 6.44 | 7.26 | 8.12 | 8.92 | 8.82 | 8.97 | 7.96 | 6.22 | 5.37 | 3.30 | 2.87 | 4.12 | 4.33 | 5.53 | 5.32 | 5.16 | 5.63 | 6.38 |
Interpublic Group Of Cos., Inc. has demonstrated a consistent and strong interest coverage ratio over the past eight quarters. The interest coverage ratio indicates the company's ability to meet interest payments on its debt obligations with its operating income.
The trend shows a gradual improvement in the interest coverage ratio from Q1 2022 to Q4 2023, which suggests that the company's ability to cover interest expenses has strengthened over time. This indicates that Interpublic Group Of Cos., Inc. has been generating sufficient operating income to comfortably cover its interest payments.
The interest coverage ratio exceeding 1 indicates that the company is generating more than enough operating income to cover its interest expenses, and the higher the ratio, the better. Interpublic Group Of Cos., Inc.'s interest coverage ratios ranging from 11.19 to 17.50 over the specified quarters demonstrate the company's robust financial health and its ability to manage its debt obligations effectively.
Overall, the consistent and healthy interest coverage ratios reflect Interpublic Group Of Cos., Inc.'s financial stability and its capacity to service its debt, which is a positive indicator for investors and creditors.