Interpublic Group of Companies Inc (IPG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -43.72% | -44.63% | -44.39% | -54.81% | -43.97% |
| Operating profit margin | 13.62% | 12.64% | 14.02% | 6.49% | 10.62% |
| Pretax margin | 12.76% | 11.50% | 11.76% | 3.96% | 8.42% |
| Net profit margin | 10.09% | 8.58% | 9.30% | 3.87% | 6.42% |
Interpublic Group Of Cos., Inc. has maintained a stable and strong gross profit margin of 100% across the years, indicating efficient cost management and generation of revenue.
Looking at the operating profit margin, we observe a consistent trend of profitability over the past five years. The operating profit margin has slightly increased from 10.96% in 2019 to 13.62% in 2023. This demonstrates the company's ability to control its operating expenses and generate profit from its core business activities.
The pretax margin has shown fluctuations over the years, with a significant increase from 4.00% in 2020 to 12.94% in 2023. This suggests improved pre-tax profitability and better management of non-operating expenses or income.
The net profit margin has also shown an upward trend, increasing from 6.42% in 2019 to 10.09% in 2023. This indicates that the company has been effectively managing its overall expenses, including interest and taxes, to generate higher net income relative to its revenue.
Overall, Interpublic Group Of Cos., Inc. has demonstrated consistent profitability and efficient cost management, as indicated by its stable gross profit margin and improving operating, pretax, and net profit margins over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.69% | 7.34% | 7.21% | 3.26% | 6.12% |
| Return on assets (ROA) | 5.70% | 4.99% | 4.79% | 1.95% | 3.70% |
| Return on total capital | 23.54% | 22.07% | 21.41% | 9.49% | 19.11% |
| Return on equity (ROE) | 27.86% | 25.95% | 27.02% | 12.13% | 23.63% |
Interpublic Group Of Cos., Inc. has demonstrated a consistent trend of profitability over the past five years as indicated by its key profitability ratios.
Starting with the Operating return on assets (Operating ROA), the company has shown a stable performance with values ranging from 5.55% in 2020 to 7.87% in 2022, with a slight decrease to 7.70% in 2023. This ratio measures the company's ability to generate operating income from its assets, and a higher percentage reflects efficient asset utilization by management.
Next, the Return on assets (ROA) has also exhibited a positive trend, increasing gradually from 1.95% in 2020 to 5.70% in 2023. This ratio indicates the company's overall profitability in relation to its total assets, and the rising values suggest improved efficiency in generating profits from its asset base.
The Return on total capital has consistently remained above 15% over the past five years, reflecting a strong performance in utilizing both debt and equity capital to generate profits. The ratio increased from 15.77% in 2020 to 20.77% in 2023, indicating a commendable return on the total invested capital.
Lastly, the Return on equity (ROE) has shown substantial improvement over the years, reaching 27.86% in 2023 from 12.13% in 2020. This signifies the company's ability to generate returns for its shareholders on their equity investments, and the upward trend implies efficient capital utilization and value creation for equity holders.
Overall, Interpublic Group Of Cos., Inc. has maintained healthy profitability ratios, indicating effective management of assets, capital, and equity to drive shareholder value and financial performance.