Interpublic Group of Companies Inc (IPG)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 1.36 | 1.68 | 1.69 | 1.83 | 1.49 | 1.73 | 1.73 | 1.67 | 1.36 | 1.59 | 1.59 | 1.70 | 1.40 | 1.84 | 2.11 | 1.83 | 1.43 | 1.68 | 1.58 | 1.62 | |
| DSO | days | 268.09 | 217.42 | 215.60 | 199.49 | 245.13 | 210.77 | 211.58 | 219.13 | 268.20 | 229.28 | 229.50 | 215.25 | 260.51 | 198.33 | 173.03 | 199.13 | 255.09 | 217.61 | 231.59 | 224.93 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.36
= 268.09
To analyze Interpublic Group Of Cos., Inc.'s Days Sales Outstanding (DSO) performance, we observe a trend over the last eight quarters. DSO measures the average number of days a company takes to collect revenue after a sale is made.
In Q4 2023, the DSO increased to 268.09 days compared to the previous quarter where it was at 217.42 days in Q3 2023. This indicates that the company took longer to collect its revenue in Q4.
Looking at the trend for the past eight quarters, we note that DSO has shown fluctuations. The company's DSO was relatively high in Q4 2022 at 245.13 days, followed by a decrease in subsequent quarters. However, the recent increase in DSO in Q4 2023 is a concerning indication that the company may be facing challenges in collecting its accounts receivable promptly.
It is crucial for companies to manage their DSO effectively to ensure timely collection of revenue and maintain healthy cash flows. Any prolonged increase in DSO may suggest potential liquidity issues or inefficiencies in the company's account receivables management. Further analysis of the company's collection policies and customer credit practices may be necessary to address these issues and improve overall financial performance.
Peer comparison
Dec 31, 2023