Interpublic Group of Companies Inc (IPG)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,889,300 | 10,851,900 | 10,811,100 | 10,880,300 | 10,927,800 | 10,874,000 | 10,778,300 | 10,552,200 | 10,240,700 | 9,858,600 | 9,442,100 | 8,958,200 | 9,061,000 | 9,412,800 | 9,725,400 | 10,219,900 | 10,221,300 | 10,175,500 | 10,034,900 | 9,906,500 |
| Total current assets | US$ in thousands | 10,950,400 | 8,645,400 | 8,641,000 | 8,170,900 | 10,325,200 | 8,534,900 | 8,760,800 | 9,270,000 | 11,231,800 | 9,132,900 | 8,782,500 | 7,770,200 | 9,367,600 | 7,284,300 | 6,214,300 | 7,596,700 | 8,770,700 | 7,050,000 | 7,475,400 | 7,247,000 |
| Total current liabilities | US$ in thousands | 10,330,900 | 8,326,200 | 8,355,300 | 7,960,000 | 9,983,200 | 8,169,200 | 8,462,700 | 8,954,200 | 10,890,000 | 9,049,000 | 8,796,700 | 7,984,500 | 9,580,500 | 7,227,900 | 6,366,500 | 7,795,900 | 9,420,400 | 7,398,400 | 7,731,300 | 7,531,100 |
| 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 | — | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,889,300K ÷ ($10,950,400K – $10,330,900K)
= 17.58
Interpublic Group Of Cos., Inc. has exhibited fluctuations in its working capital turnover ratio over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In Q1 2022, the working capital turnover ratio was 33.41, which indicates that for every dollar of working capital the company had, it generated $33.41 of sales revenue. The ratio then increased to 36.16 in Q2 2022 before decreasing slightly to 29.73 in Q3 2022.
Throughout 2023, there was a significant increase in the working capital turnover ratio from Q4 2022 to Q1 2023, reaching a peak of 51.59, which signifies that the company was effectively utilizing its working capital to generate sales. However, the ratio declined in subsequent quarters, reaching a low of 17.58 in Q4 2023.
Overall, the working capital turnover ratio of Interpublic Group Of Cos., Inc. has displayed variability, with periods of both efficiency and inefficiency in converting working capital into revenue. It is essential for the company to closely monitor and manage its working capital levels to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2023