Interpublic Group of Companies Inc (IPG)
Working capital 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 current assets | US$ in thousands | 10,606,000 | 10,950,400 | 10,325,200 | 11,231,800 | 9,367,600 |
| Total current liabilities | US$ in thousands | 9,758,000 | 10,330,900 | 9,983,200 | 10,890,000 | 9,580,500 |
| Working capital turnover | 12.61 | 17.58 | 31.95 | 29.96 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,691,700K ÷ ($10,606,000K – $9,758,000K)
= 12.61
The working capital turnover of Interpublic Group of Companies Inc has shown fluctuations over the past five years. In December 2021, the company had a working capital turnover of 29.96, indicating that it generated $29.96 in revenue for every $1 of working capital invested. This ratio improved in December 2022 to 31.95, suggesting more efficient utilization of working capital to generate revenue.
However, there was a significant decline in the working capital turnover in December 2023 to 17.58, which may indicate inefficiencies in managing working capital during that period. The trend continued in December 2024 with a further decrease to 12.61, signaling potential challenges in converting working capital into sales revenue efficiently.
Overall, the working capital turnover ratio of Interpublic Group of Companies Inc has varied, reflecting fluctuations in the company's ability to generate revenue from its working capital investments. Further analysis of operational and strategic factors influencing working capital management may be necessary to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2024