Interpublic Group of Companies Inc (IPG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.93 | 0.95 | 0.97 | 0.96 |
| Quick ratio | 1.01 | 0.98 | 0.97 | 0.96 | 0.99 | 0.99 | 0.97 | 0.98 | 0.99 | 0.96 | 0.94 | 0.91 | 0.94 | 0.93 | 0.89 | 0.91 | 0.88 | 0.89 | 0.90 | 0.89 |
| Cash ratio | 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 | 0.13 | 0.07 | 0.08 | 0.08 |
Interpublic Group Of Cos., Inc. has maintained relatively stable liquidity ratios over the past eight quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, has been hovering around 1.03 to 1.06, showing that the company may have just enough current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, mirrors the pattern of the current ratio with values ranging from 1.03 to 1.06. This suggests that Interpublic Group may be able to meet its short-term obligations without relying on selling inventory.
The cash ratio, representing the ability to pay off current liabilities using only cash and cash equivalents, has shown slight fluctuations from 0.26 to 0.32. The decrease in the cash ratio from 0.32 in Q1 2022 to 0.28 in Q4 2023 may indicate a potential decrease in the company's ability to pay off current liabilities with cash alone.
Overall, the liquidity ratios of Interpublic Group Of Cos., Inc. indicate a stable liquidity position, with the company having the ability to meet its short-term obligations, albeit with a relatively lower cushion of cash reserves in recent quarters.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 142.09 | 78.39 | 74.45 | 50.47 | 55.08 | 60.01 | 51.91 | 46.71 | 47.22 | 52.25 | 52.05 | 54.78 | 66.74 | 64.49 | 62.39 | 59.34 | 74.24 | 75.52 | 78.92 | 78.13 |
The cash conversion cycle of Interpublic Group Of Cos., Inc. has shown positive values in the recent quarters, indicating a longer period of time required to convert resources into cash. The trend shows an improvement from Q4 2022 to Q1 2023, with the cycle decreasing from 245.13 days to 199.49 days. However, in Q2 and Q3 2023, the cycle increased slightly but remained within the range of 215 to 217 days.
It is worth noting that there were significant anomalies in Q2 and Q3 2022 where the cash conversion cycle was negative, which may suggest issues with data reporting or unusual business activities during those periods. Overall, the recent positive trend in the cash conversion cycle indicates improved efficiency in managing working capital and converting resources into cash, although the company should continue monitoring and managing this cycle effectively to ensure optimal cash flow.