WPP Balance Sheet Health
Financial Health criteria checks 2/6
WPP has a total shareholder equity of £4.0B and total debt of £5.5B, which brings its debt-to-equity ratio to 138.9%. Its total assets and total liabilities are £25.8B and £21.9B respectively. WPP's EBIT is £637.7M making its interest coverage ratio 2.5. It has cash and short-term investments of £2.1B.
Key information
138.9%
Debt to equity ratio
UK£5.50b
Debt
| Interest coverage ratio | 2.5x |
| Cash | UK£2.13b |
| Equity | UK£3.96b |
| Total liabilities | UK£21.86b |
| Total assets | UK£25.81b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: 0WPA's short term assets (£13.4B) do not cover its short term liabilities (£15.0B).
Long Term Liabilities: 0WPA's short term assets (£13.4B) exceed its long term liabilities (£6.9B).
Debt to Equity History and Analysis
Debt Level: 0WPA's net debt to equity ratio (85.2%) is considered high.
Reducing Debt: 0WPA's debt to equity ratio has increased from 64.2% to 138.9% over the past 5 years.
Debt Coverage: 0WPA's debt is well covered by operating cash flow (20.8%).
Interest Coverage: 0WPA's interest payments on its debt are not well covered by EBIT (2.5x coverage).