Interpublic Group of Companies Inc (IPG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,650,600 | 15,804,900 | 14,786,200 | 14,027,500 | 14,716,000 |
| Payables | US$ in thousands | 8,355,000 | 8,235,300 | 8,960,000 | 7,269,700 | 7,205,400 |
| Payables turnover | 1.87 | 1.92 | 1.65 | 1.93 | 2.04 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,650,600K ÷ $8,355,000K
= 1.87
The payables turnover ratio for Interpublic Group Of Cos., Inc. has been consistently reported as 0.00 for the past five years (2019-2023). This indicates that the company is not efficiently managing its accounts payable turnover and may be taking an extended period to pay its suppliers or is not effectively utilizing its accounts payable resources. It is essential for the company to improve its payables turnover ratio to enhance its working capital management and maintain strong supplier relationships. Further investigation into the company's accounts payable processes and supplier payment terms may be necessary to address this inefficiency.
Peer comparison
Dec 31, 2023