ManpowerGroup Inc (MAN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,830,200 | 9,130,400 | 9,828,900 | 9,328,200 | 9,223,800 |
| Total stockholders’ equity | US$ in thousands | 2,223,300 | 2,447,300 | 2,521,700 | 2,441,000 | 2,743,000 |
| Financial leverage ratio | 3.97 | 3.73 | 3.90 | 3.82 | 3.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,830,200K ÷ $2,223,300K
= 3.97
The financial leverage ratio of ManpowerGroup has shown a fluctuating trend over the past five years. Starting at 3.36 in 2019, the ratio increased steadily to reach 3.90 in 2021 before experiencing a slight decrease in 2022 to 3.73. However, by the end of 2023, the financial leverage ratio had peaked at 3.97, indicating an increase in the company's reliance on debt to finance its operations and investments. This upward trend in the leverage ratio suggests that ManpowerGroup's debt levels have been increasing relative to its equity, potentially increasing its financial risk and vulnerability to economic downturns. It is important for investors and stakeholders to closely monitor this trend to assess the company's ability to manage its debt obligations effectively in the future.
Peer comparison
Dec 31, 2023