ManpowerGroup Inc (MAN)

Solvency ratios are important metrics that indicate a company's ability to meet its long-term financial obligations. Let's analyze ManpowerGroup's solvency ratios based on the provided data:

1. Debt-to-assets ratio:
ManpowerGroup's debt-to-assets ratio has remained relatively stable around 0.11 over the past five years. This indicates that the company relies minimally on debt to finance its assets, with only 11% of its assets funded by debt on average.

2. Debt-to-capital ratio:
The debt-to-capital ratio has shown some fluctuation, ranging from 0.28 to 0.32 over the same period. This ratio provides insight into the proportion of a company's capital that is financed through debt, and ManpowerGroup's ratio suggests that around 29% to 32% of its capital has been derived from debt financing.

3. Debt-to-equity ratio:
The debt-to-equity ratio has also fluctuated, ranging from 0.39 to 0.46 over the past five years. This ratio reflects the extent to which a company's operations are funded by debt versus equity. ManpowerGroup's ratio indicates that the company has been relying more on debt funding in recent years compared to equity.

4. Financial leverage ratio:
The financial leverage ratio has shown an upward trend from 3.36 in 2019 to 3.97 in 2023. This ratio measures the extent to which a company uses debt to finance its operations and assets. ManpowerGroup's increasing financial leverage ratio suggests a higher level of financial risk due to the rising use of debt in its capital structure.

Overall, ManpowerGroup's solvency ratios indicate a relatively stable and conservative approach to debt financing, as reflected in the low debt-to-assets ratio. However, the increasing financial leverage ratio raises some concerns about the company's financial risk and reliance on debt funding over the years. It would be important for investors and analysts to monitor these ratios to assess ManpowerGroup's long-term financial health and ability to meet its obligations.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater ability to cover interest expenses using its operating income.

Based on the data provided for ManpowerGroup over the past five years, the interest coverage ratio has fluctuated significantly. In 2023, the interest coverage ratio was 6.83, indicating a decrease compared to the previous years. This suggests that the company's ability to cover its interest expenses with its operating income weakened in 2023.

In 2022 and 2021, the interest coverage ratios were 20.06 and 21.84, respectively, showing a strong ability to cover interest payments during those years. This could indicate better operational performance or lower interest expenses during those periods.

In 2020 and 2019, the interest coverage ratios were 8.42 and 16.79, respectively. These ratios show some variability but indicate that the company generally had a reasonable ability to cover its interest expenses in those years.

Overall, while the interest coverage ratio for ManpowerGroup in 2023 was lower compared to some of the previous years, the company has generally demonstrated a satisfactory ability to meet its interest obligations over the past five years. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.