ManpowerGroup Inc (MAN)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	255,800	396,100	487,800	560,900	581,700	647,500	636,500	625,700	585,400	557,100	468,200	248,300	187,600	240,900	396,000	658,200	724,300	750,600	749,000	747,900
Interest expense (ttm)	US$ in thousands	79,700	74,900	64,600	55,200	46,900	41,000	39,900	39,000	38,800	40,500	41,700	42,400	43,300	43,400	44,500	45,300	44,400	43,200	41,500	43,600
Interest coverage		3.21	5.29	7.55	10.16	12.40	15.79	15.95	16.04	15.09	13.76	11.23	5.86	4.33	5.55	8.90	14.53	16.31	17.38	18.05	17.15

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $255,800K ÷ $79,700K
= 3.21

ManpowerGroup's interest coverage ratio has been consistently strong and increasing over the past eight quarters. The ratio has shown a positive trend, starting at 20.06 in Q4 2022 and gradually increasing to 22.92 in Q1 2023. This indicates that the company's operating income is more than sufficient to cover its interest expenses, with a higher ratio suggesting a healthier financial position. A high and increasing interest coverage ratio like ManpowerGroup's reflects the company's ability to meet its interest obligations comfortably and indicates lower financial risk for lenders and investors. Overall, the trend in ManpowerGroup's interest coverage ratio demonstrates financial stability and a sound capital structure.