ManpowerGroup Inc (MAN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.11 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 | 0.06 | 0.00 | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.30 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 | 0.00 | 0.28 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.44 | 0.00 | 0.00 | 0.00 | 0.45 | 0.00 | 0.00 | 0.00 | 0.39 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 | 0.45 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.86 | 3.90 | 3.96 | 3.90 | 3.97 | 3.57 | 3.64 | 3.56 | 3.73 | 3.56 | 3.95 | 3.82 | 3.90 | 3.82 | 3.96 | 3.91 | 3.82 | 3.46 | 3.35 | 3.31 |
ManpowerGroup Inc's solvency ratios indicate its ability to meet its long-term financial obligations.
1. Debt-to-Assets Ratio: This ratio shows the proportion of the company's assets financed by debt. ManpowerGroup's debt-to-assets ratio has been consistently low, with occasional increases in the range of 0.06 to 0.12, indicating a conservative level of leverage.
2. Debt-to-Capital Ratio: This ratio reflects the percentage of capital provided by debt. ManpowerGroup's debt-to-capital ratio has also been relatively low, with occasional peaks around 0.31, but generally staying below 0.30, suggesting the company relies more on equity financing.
3. Debt-to-Equity Ratio: This ratio compares the company's debt to its shareholders' equity. ManpowerGroup's debt-to-equity ratio has remained low, showing a stable financial structure with moderate levels of debt relative to equity.
4. Financial Leverage Ratio: This ratio measures the extent to which the company uses debt to support its operations. ManpowerGroup's financial leverage ratio has fluctuated but generally stayed within a range of 3.5 to 4.0, indicating a moderate level of financial leverage.
Overall, ManpowerGroup Inc's solvency ratios suggest a prudent approach to managing its long-term financial stability, with a focus on maintaining a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
ManpowerGroup Inc's interest coverage ratio has shown some fluctuations over the past few years. The interest coverage ratio provides insight into the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT).
Looking at the data provided, the interest coverage ratio has generally been above 1, indicating that ManpowerGroup Inc has been able to cover its interest expenses with its operating income. A ratio above 1 suggests that the company is generating enough operating income to comfortably cover its interest payments.
From March 31, 2020, to December 31, 2022, the interest coverage ratio showed a decreasing trend, dropping from 14.53 to 12.40. This may raise some concerns as a declining interest coverage ratio could imply a weakening ability to meet interest obligations from operating earnings.
However, there was a slight uptick in the interest coverage ratio from March 31, 2023, to June 30, 2023, suggesting a temporary improvement in the company's ability to cover its interest expenses. But the ratio decreased significantly from June 30, 2023, to December 31, 2024, reaching its lowest point at 2.28 in September 30, 2024.
The interest coverage ratio dropping below 3 is considered a warning sign, indicating a potential inability to cover interest expenses with earnings. It would be crucial for investors and stakeholders to monitor this metric closely in the coming periods to ensure the company's financial health and ability to manage its debt.