Interpublic Group of Companies Inc (IPG)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	15,650,600	15,798,400	15,800,700	15,824,900	15,804,900	15,784,200	15,643,700	15,273,100	14,785,900	14,103,600	13,578,100	13,322,900	13,692,100	13,870,200	14,191,000	14,471,300	14,496,700	14,471,200	14,335,200	14,206,500
Payables	US$ in thousands	8,355,000	6,448,400	6,573,200	6,460,600	8,235,300	6,535,600	6,861,300	7,245,300	8,960,000	6,844,200	6,605,900	5,862,000	7,269,700	5,105,900	4,328,100	5,559,500	7,205,400	5,656,000	6,022,300	5,733,700
Payables turnover		1.87	2.45	2.40	2.45	1.92	2.42	2.28	2.11	1.65	2.06	2.06	2.27	1.88	2.72	3.28	2.60	2.01	2.56	2.38	2.48

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,650,600K ÷ $8,355,000K
= 1.87

The payables turnover ratio for Interpublic Group Of Cos., Inc. has been consistently low or zero in the recent quarters. This indicates that the company is taking a longer time to pay off its suppliers compared to generating revenue from its sales. A low payables turnover ratio may suggest inefficiencies in managing accounts payable, potential cash flow issues, or strained relationships with suppliers. It is important for the company to monitor and improve this ratio to optimize working capital management and maintain positive supplier relationships.

Peer comparison

Dec 31, 2023

Company name

Symbol

Payables turnover

Interpublic Group of Companies Inc

IPG

1.87

Omnicom Group Inc

OMC

1.11