Interpublic Group of Companies Inc (IPG)
Quick ratio
| 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 | US$ in thousands | 2,386,100 | 1,574,900 | 1,628,100 | 1,678,100 | 2,545,300 | 1,768,300 | 1,983,400 | 2,402,300 | 3,270,000 | 2,490,000 | 2,340,600 | 2,015,300 | 2,509,000 | 1,628,000 | 1,085,400 | 1,554,000 | 1,192,200 | 520,500 | 614,000 | 630,500 |
| Short-term investments | US$ in thousands | — | 101,800 | 102,800 | 2,000 | 1,100 | 2,000 | 2,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 7,998,000 | 6,464,300 | 6,385,900 | 5,946,500 | 7,339,000 | 6,279,100 | 6,247,900 | 6,335,200 | 7,524,900 | 6,192,900 | 5,937,000 | 5,283,000 | 6,467,100 | 5,114,600 | 4,610,300 | 5,575,500 | 7,143,300 | 6,066,500 | 6,367,100 | 6,104,900 |
| Total current liabilities | US$ in thousands | 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 | 9,420,400 | 7,398,400 | 7,731,300 | 7,531,100 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,386,100K
+ $—K
+ $7,998,000K)
÷ $10,330,900K
= 1.01
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.
Interpublic Group Of Cos., Inc. has maintained a relatively stable quick ratio over the past eight quarters, ranging from 1.03 to 1.06. A quick ratio above 1 suggests that the company has an adequate level of liquid assets to cover its short-term obligations.
The consistency of the quick ratio around 1.03 to 1.06 indicates that Interpublic Group Of Cos., Inc. has been effectively managing its short-term liquidity position. A quick ratio at or above 1 is generally considered healthy as it indicates the company is capable of meeting its current liabilities without having to rely heavily on selling inventory.
Overall, based on the quick ratio trend of Interpublic Group Of Cos., Inc., it can be inferred that the company is in a stable financial position in terms of its ability to cover short-term obligations with liquid assets.
Peer comparison
Dec 31, 2023