Interpublic Group of Companies Inc (IPG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,002,200 | 9,206,400 | 9,248,600 | 9,161,800 | 9,140,400 | 9,085,800 | 9,082,600 | 9,105,700 | 9,083,100 | 9,099,700 | 8,975,900 | 8,701,600 | 8,387,800 | 8,010,200 | 7,666,500 | 7,436,000 | 7,709,400 | 8,053,400 | 8,383,700 | 8,751,100 |
| Inventory | US$ in thousands | — | 474,000 | — | 0 | 2,952,400 | 430,600 | 462,900 | -7,618,700 | 5,900 | 16,200 | 17,700 | 30,400 | 8,200 | 3,500 | 4,600 | 4,500 | 800 | 20,000 | 26,600 | 17,400 |
| Inventory turnover | — | 19.42 | — | — | 3.10 | 21.10 | 19.62 | — | 1,539.51 | 561.71 | 507.11 | 286.24 | 1,022.90 | 2,288.63 | 1,666.63 | 1,652.44 | 9,636.75 | 402.67 | 315.18 | 502.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,002,200K ÷ $—K
= —
The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period it sells and replaces its stock. A high inventory turnover suggests strong sales and effective inventory management, while a low ratio may indicate overstocking or slowing sales.
Analyzing Interpublic Group of Companies Inc's inventory turnover based on the provided data, we observe significant fluctuations in the ratio over the reporting periods.
For the most part, the inventory turnover ratio remained relatively stable at moderate levels between March 2020 and June 2022, indicating a consistent management of inventory. However, there was a noticeable spike in December 2020, where the ratio surged to 9,636.75, which may be an anomalous data point or could signal a unique event impacting inventory levels.
Subsequently, the ratio experienced fluctuations, touching both highs and lows, with peaks recorded in September 2021 and December 2022 at 2,288.63 and 1,539.51, respectively. These elevated levels suggest efficient inventory turnover during those quarters.
However, there are instances where the inventory turnover ratio dropped significantly, such as in December 2021 and March 2022, indicating potential challenges in inventory management during those periods. Notably, there are missing or zero values in some quarters like March 2023, June 2024, and December 2024, making it difficult to perform a complete analysis for those periods.
In conclusion, the inventory turnover ratio for Interpublic Group of Companies Inc shows variability over the reporting periods, with some quarters indicating efficient inventory management while others suggest room for improvement. Further investigation into the reasons behind the fluctuations in the ratio could provide valuable insights into the company's inventory management practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024