Interpublic Group of Companies Inc (IPG)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 5.30 36.69 34.13 — 2,678.80 974.33 883.82 502.40 1,803.16 4,029.60 2,951.76 2,960.64 17,115.12 693.51 533.50 831.68 635.82 634.70 543.00 721.14
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
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
Working capital turnover 17.58 34.00 37.84 51.59 31.95 29.73 36.16 33.41 29.96 117.50 — — — 166.89 — — — — — —

Inventory turnover is not available in the provided data, which indicates that there is no available information on how efficiently Interpublic Group Of Cos., Inc. is managing its inventory during the specified periods.

The receivables turnover ratio fluctuated over the quarters, ranging from 1.36 to 1.83. This indicates that Interpublic Group Of Cos., Inc. collected its accounts receivable 1.36 to 1.83 times during the periods covered in the data. A higher receivables turnover ratio suggests that the company is efficient in collecting outstanding receivables.

On the other hand, the payables turnover ratio was consistently low at 0.00 across all quarters, except for minor activity in Q2 and Q1 of 2022. A low payables turnover ratio could suggest that the company is taking longer to pay its suppliers, potentially affecting its relationships with them.

The working capital turnover ratio varied significantly, ranging from 17.58 to 51.59. This ratio indicates how efficiently Interpublic Group Of Cos., Inc. is utilizing its working capital to generate revenue. A higher ratio suggests better utilization of working capital to generate revenue.

Overall, while the company seems efficient in collecting receivables and utilizing working capital, the lack of payables turnover data raises questions about its payment practices with suppliers. Further analysis would be needed to understand the underlying reasons for these trends in the activity ratios.

Average number of days

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
Days of inventory on hand (DOH) days 68.86 9.95 10.69 — 0.14 0.37 0.41 0.73 0.20 0.09 0.12 0.12 0.02 0.53 0.68 0.44 0.57 0.58 0.67 0.51
Days of sales outstanding (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
Number of days of payables days 194.85 148.98 151.84 149.01 190.19 151.13 160.09 173.15 221.18 177.13 177.58 160.60 193.79 134.36 111.32 140.22 181.42 142.66 153.34 147.31

Based on the provided data for Interpublic Group Of Cos., Inc., we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
Unfortunately, the data for Days of Inventory on Hand (DOH) is missing in all the quarters provided. This ratio measures the average number of days it takes for a company to sell its inventory. Without this data, it is challenging to assess the efficiency of Interpublic Group's inventory management during the specified periods.

2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding (DSO) ratio indicates the average number of days it takes for Interpublic Group to collect payment after making a sale. Analyzing the trend over the quarters provided, we observe a decrease in DSO from Q4 2022 to Q1 2023, indicating an improvement in the company's ability to collect receivables more quickly. However, a slight increase is noted in Q2 2023, followed by a more substantial increase in Q3 2023 and Q4 2023, which suggests a potential slowdown in collections during those periods.

3. Number of Days of Payables:
The Number of Days of Payables ratio shows the average number of days it takes for Interpublic Group to pay its outstanding invoices. Unfortunately, the data for Days of Payables is missing for all quarters except Q3 and Q4 2022. Interestingly, a significant increase in Days of Payables is observed from Q2 to Q3 in 2022, indicating a prolonged payment cycle during that period. However, the ratio improves in Q4 2022, signaling a potential effort to reduce outstanding payables.

In conclusion, while there are limitations due to missing data, the analysis of the available activity ratios suggests fluctuations in Interpublic Group Of Cos., Inc.'s efficiency in managing inventory, collecting receivables, and settling payables during the specified quarters. Further data and context would be needed to provide a more comprehensive assessment of the company's performance in these areas.

Long-term

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
Fixed asset turnover 17.10 17.29 17.17 17.26 17.14 17.18 16.80 16.11 15.15 14.80 14.35 13.43 13.13 13.26 13.55 13.58 13.14 13.42 13.08 12.91
Total asset turnover 0.57 0.64 0.63 0.65 0.58 0.64 0.62 0.59 0.51 0.55 0.55 0.55 0.50 0.59 0.65 0.62 0.58 0.64 0.61 0.62

Interpublic Group Of Cos., Inc.'s long-term activity ratios provide insights into how efficiently the company utilizes its assets to generate revenue. The fixed asset turnover ratio remained relatively stable over the quarters, ranging between 16.11 and 17.29. This ratio indicates that Interpublic Group efficiently utilized its fixed assets to generate revenue during the period.

On the other hand, the total asset turnover ratio fluctuated more significantly, ranging from 0.57 to 0.65. This ratio suggests that the company generated revenue at a rate between 57% and 65% of its total assets during the periods under review. A higher total asset turnover ratio could indicate better efficiency in asset utilization.

Overall, both ratios suggest that Interpublic Group Of Cos., Inc. effectively managed its assets to generate revenue during the quarters analyzed. The company's ability to maintain a stable fixed asset turnover ratio and show fluctuation in the total asset turnover ratio may indicate a mix of efficiently managing both fixed and total assets to generate sales. However, further analysis and comparison with industry averages would be necessary to provide a more comprehensive assessment of the company's long-term activity performance.