ManpowerGroup Inc (MAN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.11 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.27 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.37 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 3.36 | 3.24 | 3.44 | 3.42 |
ManpowerGroup's solvency ratios indicate the company's ability to meet its long-term obligations and manage its financial leverage effectively.
The debt-to-assets ratio has remained relatively constant at around 0.11 over the past eight quarters, signifying that only a small portion of the company's assets is financed by debt.
The debt-to-capital ratio, which measures the proportion of capital provided by debt, shows a stable trend around 0.29 to 0.31 in the most recent quarters. This suggests that debt accounts for approximately 29% to 31% of the company's total capital structure.
The debt-to-equity ratio has shown some variability but has generally been in the range of 0.40 to 0.45, indicating that ManpowerGroup relies more on equity financing compared to debt financing.
The financial leverage ratio has fluctuated within a relatively narrow range of 3.57 to 3.97 in the past two years, indicating that the company is using debt to amplify returns but is managing its leverage within a reasonable range.
Overall, based on these solvency ratios, ManpowerGroup appears to have a conservative debt structure with a well-balanced combination of debt and equity financing, and it has been maintaining a stable level of financial leverage over the analyzed periods.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a more financially sound company, as it suggests that the company is generating sufficient earnings to cover its interest expenses.
ManpowerGroup's interest coverage has shown a declining trend over the past eight quarters, indicating a potential decrease in its ability to cover its interest expenses. The interest coverage ratio has decreased from 22.92 in Q1 2022 to 6.83 in Q4 2023. This downward trend could be a red flag for investors and creditors, as it may suggest a weakening financial position or operational performance.
While an interest coverage ratio above 1 indicates that the company is able to meet its interest obligations, ManpowerGroup's ratio has been well above this threshold in all quarters, which is a positive sign. However, the significant decrease in the ratio over time warrants further investigation to understand the reasons behind this trend and assess the company's overall financial health.