Interpublic Group of Companies Inc (IPG)

Short-term

Turnover ratios

The activity ratios of Interpublic Group of Companies Inc provide insights into the efficiency of the company's operations in managing its assets and liabilities over the years.

1. Inventory Turnover:
- The inventory turnover ratio indicates how many times inventory is sold and replaced during a period.
- In 2020, the inventory turnover was exceptionally high at 9,636.75, implying a very efficient management of inventory.
- However, there was a significant decrease in this ratio to 1,022.90 in 2021, and a subsequent moderate increase to 1,539.51 in 2022.
- The ratio further dropped to 3.07 in 2023, suggesting inventory may not be efficiently managed during that period.

2. Receivables Turnover:
- The receivables turnover ratio measures how many times receivables are collected within a year.
- The data shows that there is no information available for this ratio from 2020 to 2024.
- This lack of data might indicate that information regarding the collection of receivables is not publicly disclosed or may be insignificant.

3. Payables Turnover:
- The payables turnover ratio assesses how quickly the company pays its suppliers.
- Similar to the receivables turnover, there are no available data points for the payables turnover for the years 2020 to 2024.
- The absence of this information may imply that payables management is not a significant focus area in the financial disclosures.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively working capital is utilized in generating sales.
- The data shows an increasing trend from 2020 to 2022, with ratios of 29.96 in 2021 and 31.95 in 2022, reflecting improving efficiency.
- However, there was a decline in this ratio to 17.58 in 2023 and a further drop to 12.61 in 2024.

In conclusion, while the management of inventory and working capital showed fluctuating trends over the years, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity and efficiency in managing its assets and liabilities. Further information would be necessary to provide a more detailed analysis of Interpublic Group of Companies Inc in these areas.

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Average number of days

Interpublic Group of Companies Inc's activity ratios provide insight into how efficiently the company manages its operating cycle.

1. Days of Inventory on Hand (DOH):
- The DOH ratio reflects how many days worth of inventory the company holds on average.
- Interpublic Group of Companies Inc's DOH has fluctuated over the years, starting at an extremely low 0.04 days in December 31, 2020, then increasing to 0.36 days in December 31, 2021, and decreasing slightly to 0.24 days in December 31, 2022.
- However, there was a significant spike in DOH to 118.75 days as of December 31, 2023, which may indicate potential issues with inventory management or changes in production or sales.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect its accounts receivable.
- The data provided does not include any information on DSO for Interpublic Group of Companies Inc, suggesting that details on this ratio were not available or deemed not necessary for disclosure.

3. Number of Days of Payables:
- This ratio looks at the average number of days it takes the company to pay its suppliers.
- Similar to DSO, there is no data provided for the number of days of payables for Interpublic Group of Companies Inc, indicating that this specific information was also not disclosed.

In conclusion, based on the available information, it appears that Interpublic Group of Companies Inc may have encountered a notable deviation in its inventory management efficiency in 2023, as reflected in the drastic increase in the Days of Inventory on Hand ratio. However, without data on Days of Sales Outstanding and Number of Days of Payables, a comprehensive assessment of the company's overall working capital management is limited.

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Long-term

The long-term activity ratios for Interpublic Group of Companies Inc, as reflected in the data provided, reveal an improving trend in the efficiency of utilizing fixed assets and total assets over the years.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio shows a progressive increase from 13.13 in 2020 to 15.15 in 2021 and further to 17.14 in 2022. This indicates that the company generated $17.14 in sales for every dollar invested in fixed assets in 2022.
- However, the data does not provide values for 2023 and 2024, suggesting a potential lack of visibility in the efficient utilization of fixed assets for these years.

2. Total Asset Turnover:
- The total asset turnover ratio depicts a gradual improvement from 0.50 in 2020 to 0.58 in both 2022 and 2024, with a slight dip to 0.57 in 2023. This implies that the company generated $0.58 in sales for each dollar of total assets in both 2022 and 2024.
- The consistent increase in total asset turnover signifies enhanced efficiency in utilizing all assets, including current and fixed, to generate revenue over time.

In summary, the long-term activity ratios for Interpublic Group of Companies Inc suggest an overall positive trend in asset utilization efficiency, as indicated by the improving fixed asset turnover and total asset turnover ratios. The company appears to have been increasingly effective in generating sales relative to its investment in fixed assets and total assets, reflecting potential enhancements in operational performance and resource allocation.