Interpublic Group of Companies Inc (IPG)
Working capital 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 |
| Total current assets | US$ in thousands | 10,950,400 | 10,325,200 | 11,231,800 | 9,367,600 | 8,770,700 |
| Total current liabilities | US$ in thousands | 10,330,900 | 9,983,200 | 10,890,000 | 9,580,500 | 9,420,400 |
| Working capital turnover | 17.58 | 31.95 | 29.96 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,889,300K ÷ ($10,950,400K – $10,330,900K)
= 17.58
The working capital turnover ratio for Interpublic Group Of Cos., Inc. has shown some fluctuations over the years based on the data provided. In 2023, the ratio is 17.58, indicating that the company generated $17.58 of revenue for every dollar of working capital invested. This represents a decrease from the previous year's ratio of 31.95, suggesting that the company may be less efficient in utilizing its working capital to generate sales.
Comparing the ratios from 2023 to 2021, there was also a decrease from 29.96 to 17.58, indicating a downward trend in efficiency over this period. The absence of data for 2020 and 2019 makes it difficult to assess the trend over a longer period.
Overall, a working capital turnover ratio of 17.58 in 2023 suggests that Interpublic Group Of Cos., Inc. may need to focus on managing its working capital more effectively to improve its efficiency in generating revenue from its current assets. Further analysis of the company's working capital management and operational efficiency may be warranted to address the decline in the working capital turnover ratio in recent years.
Peer comparison
Dec 31, 2023