S&P Global(SPGI) ZACKS·2024-07-15 14:02Group 1: Strategic Acquisitions and Growth - The company aims to drive growth through strategic acquisitions, innovation, and expansion of content and products [1] - In 2023, the company acquired Market Scan Information Systems, Inc. and ChartIQ, enhancing mobility services and strengthening S&P Global Market Intelligence [1] - The acquisition of Shades of Green in 2022 improved second-party opinions, while the merger with IHS Markit in 2022 enhanced data and analytics offerings [1] Group 2: Financial Performance and Shareholder Returns - S&P Global paid out dividends of 1 billion, and 3.3 billion in 2023 and $12 billion in 2022, which boosts investor confidence and positively impacts the bottom line [2] Group 3: Liquidity and Financial Ratios - The current ratio at the end of Q1 2024 was 0.92, an increase from 0.84 in the previous quarter and 0.91 a year ago, indicating improved liquidity [3] Group 4: Expense Trends and Future Outlook - Total expenses increased by 3.4%, 99.7%, and 6.4% year over year in 2023, 2022, and 2021, respectively, due to investments in productivity programs and growth initiatives [7] - The bottom line is anticipated to be under pressure in the future due to rising expenses [7] Group 5: Revenue and Earnings Growth Projections - Revenues are expected to grow by 7.7% in 2024 and 7.8% in 2025, while earnings are projected to increase by 12.4% in 2024 and 12.7% in 2025 [10] - The company has a long-term earnings per share growth rate expectation of 12.8% over the next three to five years [10] Group 6: Market Demand and Competitive Position - The company is well-positioned to benefit from the growing demand for business information services, driven by the increasing volume of data from various organizations [11] - The market growth will be fueled by rising demand for news, information, and analytics solutions, with the company continuing to innovate and invest in data technology and workflow tools [11]