WPP Balance Sheet Health
Financial Health criteria checks 3/6
WPP has a total shareholder equity of £3.8B and total debt of £4.7B, which brings its debt-to-equity ratio to 123.2%. Its total assets and total liabilities are £26.6B and £22.8B respectively. WPP's EBIT is £520.7M making its interest coverage ratio 2.1. It has cash and short-term investments of £2.2B.
Key information
123.2%
Debt to equity ratio
UK£4.72b
Debt
Interest coverage ratio | 2.1x |
Cash | UK£2.22b |
Equity | UK£3.83b |
Total liabilities | UK£22.79b |
Total assets | UK£26.62b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: WPPG.F's short term assets (£13.9B) do not cover its short term liabilities (£16.3B).
Long Term Liabilities: WPPG.F's short term assets (£13.9B) exceed its long term liabilities (£6.5B).
Debt to Equity History and Analysis
Debt Level: WPPG.F's net debt to equity ratio (65.3%) is considered high.
Reducing Debt: WPPG.F's debt to equity ratio has reduced from 154.2% to 123.2% over the past 5 years.
Debt Coverage: WPPG.F's debt is well covered by operating cash flow (26.2%).
Interest Coverage: WPPG.F's interest payments on its debt are not well covered by EBIT (2.1x coverage).