Interpublic Group of Companies Inc (IPG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,386,100 | 2,545,300 | 3,270,000 | 2,509,000 | 1,192,200 |
| Short-term investments | US$ in thousands | — | 1,100 | — | — | — |
| Total current liabilities | US$ in thousands | 10,330,900 | 9,983,200 | 10,890,000 | 9,580,500 | 9,420,400 |
| Cash ratio | 0.23 | 0.26 | 0.30 | 0.26 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,386,100K
+ $—K)
÷ $10,330,900K
= 0.23
The cash ratio of Interpublic Group Of Cos., Inc. has shown some fluctuations over the past five years. The ratio indicates the firm's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio decreased to 0.28 from 0.30 in 2022, showing a slight decline in the company's liquidity position. However, it remained relatively stable compared to the ratios of 2020 and 2019.
The highest cash ratio was observed in 2021 at 0.34, indicating that the company had a strong ability to cover its short-term obligations with its available cash. This was a positive trend in terms of liquidity.
It is worth noting that the cash ratio dropped to 0.17 in 2019, suggesting a lower level of liquidity compared to the following years. The improvement in subsequent years highlights the company's efforts to enhance its cash position and manage its short-term obligations more effectively.
Overall, while there have been fluctuations in the cash ratio of Interpublic Group Of Cos., Inc. over the past five years, the company has generally maintained a reasonable level of liquidity to meet its short-term financial commitments. Further analysis of the company's cash management practices and overall financial health would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2023