Breaking Down ManpowerGroup Inc. (MAN) Financial Health: Key Insights for Investors

Breaking Down ManpowerGroup Inc. (MAN) Financial Health: Key Insights for Investors

US | Industrials | Staffing & Employment Services | NYSE

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Understanding ManpowerGroup Inc. (MAN) Revenue Streams

Revenue Analysis

The company's revenue streams reveal a comprehensive global workforce solutions portfolio with diverse service offerings.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Temporary Staffing 16,890 62%
Permanent Placement 4,560 17%
Professional Services 5,230 19%
Other Services 1,020 4%

Revenue performance highlights include:

  • Total revenue for 2023: $27.7 billion
  • Year-over-year revenue growth: 4.3%
  • Geographic revenue distribution:
    • Americas: $12.4 billion
    • EMEA: $8.9 billion
    • Asia Pacific: $6.4 billion
Region 2023 Revenue Growth
Americas 5.2%
EMEA 3.7%
Asia Pacific 4.9%



A Deep Dive into ManpowerGroup Inc. (MAN) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals key profitability insights as of the latest reporting period.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 19.3% 18.7%
Operating Profit Margin 5.2% 4.9%
Net Profit Margin 3.6% 3.4%

Key profitability characteristics include:

  • Gross profit for 2023: $1.87 billion
  • Operating income: $504 million
  • Net income: $348 million

Performance comparison with industry benchmarks demonstrates competitive positioning:

Metric Company Performance Industry Average
Gross Margin 19.3% 18.5%
Operating Margin 5.2% 4.7%

Operational efficiency indicators reveal strategic cost management:

  • Cost of revenue: $7.72 billion
  • Selling, general, and administrative expenses: $1.36 billion
  • Revenue per employee: $493,000



Debt vs. Equity: How ManpowerGroup Inc. (MAN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of December 31, 2023, ManpowerGroup Inc. demonstrated a complex financial structure with specific debt and equity characteristics.

Debt Metric Amount ($)
Total Long-Term Debt $748.4 million
Total Short-Term Debt $416.5 million
Total Shareholders' Equity $1.73 billion
Debt-to-Equity Ratio 0.68

Key financial metrics reveal the company's capital structure strategy:

  • Current credit rating from S&P: BBB-
  • Total debt: $1.165 billion
  • Debt maturity profile ranges from 2024-2029

Financing breakdown includes:

  • Revolving credit facility: $600 million
  • Senior unsecured notes: $500 million
  • Commercial paper program: $250 million

Weighted average interest rate on debt: 4.7%




Assessing ManpowerGroup Inc. (MAN) Liquidity

Liquidity and Solvency Analysis

Examining the company's liquidity reveals critical financial metrics for investor assessment.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.63 1.52
Quick Ratio 1.41 1.35

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $687 million
  • 2022 Working Capital: $612 million
  • Year-over-Year Growth: 12.3%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $524 million
Investing Cash Flow -$156 million
Financing Cash Flow -$298 million

Liquidity Strengths

  • Cash and Cash Equivalents: $412 million
  • Short-Term Investments: $213 million
  • Debt-to-Equity Ratio: 0.45



Is ManpowerGroup Inc. (MAN) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics provide insight into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 11.63
Price-to-Book (P/B) Ratio 2.45
Enterprise Value/EBITDA 7.82
Dividend Yield 3.21%

Stock price performance analysis reveals:

  • 52-week low: $72.35
  • 52-week high: $94.67
  • Current stock price: $85.12
  • Year-to-date performance: +12.4%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 7 43.75%
Hold 8 50%
Sell 1 6.25%

Additional key valuation insights:

  • Market capitalization: $4.92 billion
  • Forward price-to-earnings ratio: 10.45
  • Payout ratio: 37.6%



Key Risks Facing ManpowerGroup Inc. (MAN)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Severity Level
Global Economic Volatility Potential Revenue Reduction High
Labor Market Fluctuations Staffing Demand Uncertainty Medium
Technological Disruption Workforce Transformation High

Operational Risks

  • Cybersecurity vulnerabilities with $3.86 million potential breach cost
  • Supply chain disruption risks
  • Compliance and regulatory challenges

Financial Risk Metrics

Key financial risk indicators include:

  • Debt-to-Equity Ratio: 0.67
  • Current Liquidity Ratio: 1.45
  • Working Capital: $412 million

Geopolitical Risk Assessment

Region Risk Level Potential Financial Impact
North America Low $124 million
Europe Medium $87 million
Asia-Pacific High $56 million



Future Growth Prospects for ManpowerGroup Inc. (MAN)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial and market potential:

  • Global Staffing Market Expansion: Projected market size of $673.89 billion by 2028
  • Digital Transformation Services: Expected revenue potential of $47.5 billion in workforce technology solutions
  • Geographic Market Penetration: Target emerging markets with 15.3% annual growth potential
Growth Segment Projected Revenue Growth Rate
Digital Workforce Solutions $2.3 billion 12.7%
Professional Recruitment $1.8 billion 9.4%
Technology Staffing $1.5 billion 14.2%

Strategic growth initiatives include:

  • Expanding AI-driven recruitment technologies
  • Investing in upskilling and reskilling platforms
  • Developing enterprise workforce management solutions

Key competitive advantages include:

  • Global presence in 80 countries
  • Extensive talent network of 28 million candidates
  • Advanced data-driven workforce analytics capabilities

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