Interpublic Group of Companies Inc (IPG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,691,700 | 10,889,300 | 10,927,800 | 10,240,700 | 9,061,000 |
| Total assets | US$ in thousands | 18,325,800 | 19,267,300 | 18,845,000 | 19,909,200 | 18,042,700 |
| Total asset turnover | 0.58 | 0.57 | 0.58 | 0.51 | 0.50 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,691,700K ÷ $18,325,800K
= 0.58
The total asset turnover ratio for Interpublic Group of Companies Inc has shown a gradual improvement over the past five years. It increased from 0.50 in December 2020 to 0.58 at the end of both December 2022 and December 2024. This indicates that the company generated $0.58 in revenue for every $1 of total assets invested in the business during those years.
The ratio suggests that Interpublic Group is becoming more efficient in utilizing its assets to generate revenue over time. A higher total asset turnover ratio generally signifies that the company is effectively using its assets to generate sales, which could be indicative of improved operational efficiency and productivity.
Overall, the increasing trend in the total asset turnover ratio for Interpublic Group of Companies Inc reflects positively on the company's ability to generate revenue relative to its asset base, potentially indicating improving business performance and financial health.
Peer comparison
Dec 31, 2024