Interpublic Group of Companies Inc (IPG)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,606,000 | 9,257,700 | 8,825,600 | 9,025,900 | 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 |
| Total current liabilities | US$ in thousands | 9,758,000 | 8,465,600 | 8,287,300 | 8,498,300 | 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 |
| Current ratio | 1.09 | 1.09 | 1.06 | 1.06 | 1.06 | 1.04 | 1.03 | 1.03 | 1.03 | 1.04 | 1.04 | 1.04 | 1.03 | 1.01 | 1.00 | 0.97 | 0.98 | 1.01 | 0.98 | 0.97 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,606,000K ÷ $9,758,000K
= 1.09
Interpublic Group of Companies Inc has shown a trend of improving current ratio over the past few years, indicating its ability to meet short-term obligations with its current assets. The current ratio has increased steadily from 0.97 as of March 31, 2020, to 1.09 as of December 31, 2024. This suggests the company has a relatively strong liquidity position, with current assets exceeding current liabilities by a healthy margin.
The current ratio surpassed 1.0 starting from September 30, 2020, indicating that Interpublic Group has more than enough current assets to cover its current liabilities. The ratio remained above 1.0 for the subsequent quarters, indicating a continued ability to pay off short-term obligations. The highest current ratio of 1.09 was achieved by December 31, 2024, which implies an improved ability to cover short-term debts with assets that can be quickly converted into cash.
Overall, the upward trend in the current ratio reflects positively on Interpublic Group's financial health and ability to manage its short-term financial obligations effectively. However, it is important to consider other liquidity and solvency ratios in conjunction with the current ratio to gain a more comprehensive understanding of the company's financial stability.
Peer comparison
Dec 31, 2024