Interpublic Group of Companies Inc (IPG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,889,300 | 10,927,800 | 10,240,700 | 9,061,000 | 10,221,300 |
| Property, plant and equipment | US$ in thousands | 636,700 | 637,400 | 675,800 | 690,300 | 778,100 |
| Fixed asset turnover | 17.10 | 17.14 | 15.15 | 13.13 | 13.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,889,300K ÷ $636,700K
= 17.10
Interpublic Group Of Cos., Inc. has demonstrated a consistently high fixed asset turnover ratio over the past five years. The company's fixed asset turnover ratio ranged from 13.13 to 17.14, indicating that the company generates $17.10 in sales revenue for every dollar invested in fixed assets in 2023, similar to the previous year's performance. This suggests efficient utilization of its fixed assets to generate sales revenue. The increasing trend in the fixed asset turnover ratio over the years reflects improving operational efficiency in utilizing fixed assets. Overall, the company's ability to generate revenue from its fixed assets is a key strength that enhances its operational performance and financial sustainability.
Peer comparison
Dec 31, 2023