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The Interpublic Group of (The Interpublic Group of) Debt-to-EBITDA : 4.00 (As of Mar. 2024)


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What is The Interpublic Group of Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Interpublic Group of's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $520 Mil. The Interpublic Group of's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $4,100 Mil. The Interpublic Group of's annualized EBITDA for the quarter that ended in Mar. 2024 was $1,154 Mil. The Interpublic Group of's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 4.00.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for The Interpublic Group of's Debt-to-EBITDA or its related term are showing as below:

IPG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.26   Med: 2.56   Max: 6.13
Current: 2.42

During the past 13 years, the highest Debt-to-EBITDA Ratio of The Interpublic Group of was 6.13. The lowest was 1.26. And the median was 2.56.

IPG's Debt-to-EBITDA is ranked worse than
59.52% of 672 companies
in the Media - Diversified industry
Industry Median: 1.65 vs IPG: 2.42

The Interpublic Group of Debt-to-EBITDA Historical Data

The historical data trend for The Interpublic Group of's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Interpublic Group of Debt-to-EBITDA Chart

The Interpublic Group of Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.70 6.13 2.86 2.65 2.46

The Interpublic Group of Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.97 2.91 2.53 1.56 4.00

Competitive Comparison of The Interpublic Group of's Debt-to-EBITDA

For the Advertising Agencies subindustry, The Interpublic Group of's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Interpublic Group of's Debt-to-EBITDA Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, The Interpublic Group of's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where The Interpublic Group of's Debt-to-EBITDA falls into.



The Interpublic Group of Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Interpublic Group of's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(536.9 + 4134.3) / 1897.9
=2.46

The Interpublic Group of's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(520 + 4099.8) / 1154.4
=4.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.


The Interpublic Group of  (NYSE:IPG) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


The Interpublic Group of Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of The Interpublic Group of's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


The Interpublic Group of (The Interpublic Group of) Business Description

Traded in Other Exchanges
Address
909 Third Avenue, New York, NY, USA, 10022
Interpublic Group is among the world's largest advertising holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 80% of its revenue from developed regions such as the United States and Europe.
Executives
Jorge L. Benitez director 5201 BLUE LAGOON DRIVE, SUITE 250, MIAMI FL 33126
Dawn E Hudson director 2530 ZANKER ROAD, SAN JOSE CA 95131
Jocelyn Carter-miller director 3698 NW 15TH STREET, LAUDERHILL FL 33311
Christopher F Carroll officer: SVP, Controller & CAO 3 TIMES SQUARE, 12TH FL., NEW YORK NY 10036
Andrew Bonzani officer: SVP, General Counsel & Sec. 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Ellen Tobi Johnson officer: SVP of Finance & Treasurer C/O IPG, 1114 AVE OF THE AMERICAS, NEW YORK NY 10036
Mary Guilfoile director 227 WASHINGTON STREET STE.200, CONSHOHOCKEN PA 19428
Michael Isor Roth director THE INTERPUBLIC GROUP OF COMPANIES, INC., 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Philippe Krakowsky officer: SVP, Dir of Corporate Comms
H John Greeniaus director
Linda S Sanford director 4 IRVING PLACE, NEW YORK NY 10003
Julie Connors officer: SVP,Audit & Chief Risk Officer C/O IPG, 1114 AVE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
David M Thomas director 930 CLAPBOARD RIDGE ROAD, GREENWICH CT 06830
Frank Mergenthaler officer: Exec. VP & CFO 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Patrick Q Moore director 625 ELMWOOD DRIVE NE, ATLANTA GA 30306