Interpublic Group of Companies Inc (IPG)

Liquidity ratios

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
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
Quick ratio 0.22 0.18 0.19 0.23 0.23 0.20 0.21 0.21 0.26 0.22 0.23 0.27 0.30 0.28 0.27 0.25 0.26 0.23 0.17 0.20
Cash ratio 0.22 0.18 0.19 0.23 0.23 0.20 0.21 0.21 0.26 0.22 0.23 0.27 0.30 0.28 0.27 0.25 0.26 0.23 0.17 0.20

Interpublic Group of Companies Inc's liquidity ratios show a relatively stable trend over the evaluated periods. The current ratio has improved gradually from 0.97 as of March 31, 2020, to 1.09 by December 31, 2024, indicating the company's ability to cover its short-term obligations with its current assets has strengthened over time.

Similarly, the quick ratio, a more stringent measure of liquidity, has also shown some fluctuations but generally maintained within a reasonable range. It increased from 0.20 on March 31, 2020, to 0.22 by December 31, 2024, suggesting that the company has been able to improve its ability to meet its short-term liabilities with its most liquid assets.

The cash ratio, which is the most conservative liquidity measure, has followed a similar pattern to the quick ratio, suggesting that Interpublic Group of Companies Inc has been able to maintain its ability to cover its short-term liabilities with its cash and cash equivalents effectively.

Overall, the liquidity ratios of Interpublic Group of Companies Inc demonstrate a consistent improvement in its short-term liquidity position, which is a positive indicator of the company's financial health and its ability to meet its obligations.

Additional liquidity measure

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
Cash conversion cycle days 0.00 18.79 0.00 0.00 117.90 17.30 18.60 0.00 0.24 0.65 0.72 1.28 0.36 0.16 0.22 0.22 0.04 0.91 1.16 0.73

Interpublic Group of Companies Inc's cash conversion cycle has shown fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its investments in raw materials, labor, and other inputs into cash flows from sales.

From March 31, 2020, to December 31, 2020, the company managed to reduce its cash conversion cycle significantly from 0.73 days to 0.04 days, indicating an improvement in the efficiency of its working capital management. The cycle remained low in the subsequent periods, ranging from 0.00 to 1.28 days, signaling that the company was able to efficiently manage its cash flow and working capital during those periods.

However, in the last quarter of 2023, there was a sudden increase in the cash conversion cycle to 117.90 days, which suggests a potential issue with the company's cash flow management or delayed collection of receivables. This sharp increase could impact the company's liquidity and operational efficiency.

The significant increase was followed by periods where the cash conversion cycle fluctuated between 0.00 and 18.79 days until the end of September 2024. These fluctuations indicate that Interpublic Group of Companies Inc may be facing challenges in managing its working capital effectively, which could impact its ability to meet short-term obligations or invest in growth opportunities.

Overall, it is important for the company to closely monitor and manage its cash conversion cycle to ensure efficient working capital management and sustainable growth in the long term.