Interpublic Group of Companies Inc (IPG)
Receivables 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 |
| Receivables | US$ in thousands | 7,998,000 | 7,339,000 | 7,524,900 | 6,467,100 | 7,143,300 |
| Receivables turnover | 1.36 | 1.49 | 1.36 | 1.40 | 1.43 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,889,300K ÷ $7,998,000K
= 1.36
The receivables turnover ratio for Interpublic Group Of Cos., Inc. has shown some fluctuations over the past five years. In 2023, the ratio was 1.36, slightly down from 1.49 in 2022. This implies that in 2023, the company collected its accounts receivable approximately 1.36 times during the year.
A decreasing trend in the receivables turnover ratio could indicate that the company is taking longer to collect its outstanding receivables, which may be a cause for concern. It could suggest potential issues with credit policies, collection practices, or the creditworthiness of customers.
On the other hand, a consistently low receivables turnover ratio may also indicate that the company is too stringent in extending credit to customers, which could potentially impact sales and growth.
Overall, an analysis of the receivables turnover ratio for Interpublic Group Of Cos., Inc. suggests a need for further investigation into the company's credit and collection practices to ensure efficient management of accounts receivable.
Peer comparison
Dec 31, 2023