Interpublic Group of Companies Inc (IPG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,187,100 | 2,386,100 | 2,545,300 | 3,270,000 | 2,509,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 9,758,000 | 10,330,900 | 9,983,200 | 10,890,000 | 9,580,500 |
| Cash ratio | 0.22 | 0.23 | 0.25 | 0.30 | 0.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,187,100K
+ $—K)
÷ $9,758,000K
= 0.22
Interpublic Group of Companies Inc's cash ratio, which is a measure of the company's ability to cover its short-term liabilities with cash and cash equivalents, has shown a fluctuating trend over the past five years. The cash ratio was 0.26 as of December 31, 2020, indicating that the company had $0.26 of cash and cash equivalents for every $1 of current liabilities.
Subsequently, the cash ratio improved to 0.30 as of December 31, 2021, suggesting an increase in the company's liquidity position. However, in the following years, the cash ratio declined to 0.25 as of December 31, 2022, 0.23 as of December 31, 2023, and finally 0.22 as of December 31, 2024.
The decreasing trend in the cash ratio from 2021 to 2024 may indicate that Interpublic Group of Companies Inc's ability to cover its short-term liabilities with cash and cash equivalents has weakened over time. It would be prudent for stakeholders to closely monitor the company's liquidity position and assess the reasons behind the declining cash ratio to ensure financial stability and meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024