Interpublic Group of Companies Inc (IPG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,187,100 | 2,386,100 | 2,545,300 | 3,270,000 | 2,509,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 9,758,000 | 10,330,900 | 9,983,200 | 10,890,000 | 9,580,500 |
| Quick ratio | 0.22 | 0.23 | 0.25 | 0.30 | 0.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,187,100K
+ $—K
+ $—K)
÷ $9,758,000K
= 0.22
The quick ratio of Interpublic Group of Companies Inc has shown a fluctuating trend over the past five years, starting at 0.26 on December 31, 2020, and increasing to 0.30 on December 31, 2021. However, the ratio declined to 0.25 on December 31, 2022, further dropping to 0.23 on December 31, 2023, and reaching its lowest point at 0.22 on December 31, 2024.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 typically indicates that a company may have difficulty meeting its short-term liabilities. In this case, the decreasing trend of the quick ratio over the years raises concerns about Interpublic Group's liquidity position and ability to cover its immediate obligations using its quick assets.
It is important for stakeholders to closely monitor the company's liquidity position and assess the reasons behind the declining trend in the quick ratio to ensure that Interpublic Group can effectively manage its short-term financial obligations and maintain financial stability.
Peer comparison
Dec 31, 2024