ManpowerGroup Inc (MAN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 306,000 | 198,300 | 197,300 | 203,800 | 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 |
| Interest expense (ttm) | US$ in thousands | -90,000 | 87,000 | 83,400 | 81,400 | 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 |
| Interest coverage | — | 2.28 | 2.37 | 2.50 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $306,000K ÷ $-90,000K
= —
ManpowerGroup Inc's interest coverage ratio has shown fluctuations over the periods mentioned. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense, indicating the company's ability to meet its interest obligations from its operating income.
In March 2020, the interest coverage ratio was 14.53, indicating the company was comfortably covering its interest expenses. However, this ratio decreased to 8.90 in June 2020, and further declined to 4.33 by December 2020, which may raise concerns about the company's ability to meet its interest payments.
Subsequently, there was a gradual improvement in the interest coverage ratio, reaching 15.09 by December 2021. The ratio remained relatively stable around this level through June 2022. This indicates that the company's earnings were significantly higher compared to its interest expenses during this period.
However, there was a slight decline in the interest coverage ratio to 10.16 by March 2023, followed by a more significant decrease to 2.50 by March 31, 2024. A ratio of 2.50 suggests that the company's operating income may not be sufficient to cover its interest expenses, potentially indicating financial distress.
It is worth noting that the interest coverage ratio for December 31, 2024, is not provided in the data. Overall, fluctuations in the interest coverage ratio of ManpowerGroup Inc reflect changes in its financial performance and ability to service its debt obligations with its operating earnings.
Peer comparison
Dec 31, 2024