Interpublic Group of Companies Inc (IPG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.02% | 16.66% | 16.88% | 18.09% | 14.92% |
| Operating profit margin | 11.25% | 13.62% | 12.64% | 14.02% | 10.68% |
| Pretax margin | 9.81% | 12.93% | 11.61% | 11.93% | 3.99% |
| Net profit margin | 6.45% | 10.09% | 8.58% | 9.30% | 3.87% |
Interpublic Group of Companies Inc has shown an improving trend in its gross profit margin over the past five years, starting at 14.92% in December 2020 and reaching 17.02% in December 2024. This indicates the company's ability to efficiently manage its production costs and generate more profit per dollar of revenue.
Similarly, the operating profit margin has fluctuated over the years but generally increased from 10.68% in December 2020 to 11.25% in December 2024. This indicates that the company's operational efficiency and cost management have been relatively stable, with a slight decline in the most recent year.
The pretax margin has shown a significant improvement from 3.99% in December 2020 to 9.81% in December 2024. This indicates that Interpublic Group of Companies Inc has been able to effectively manage its operating expenses and interest costs to generate higher profits before taxes.
On the other hand, the net profit margin has shown some variability, with a notable increase from 3.87% in December 2020 to 10.09% in December 2023, but a decline to 6.45% in December 2024. This suggests that while the company has been successful in generating profits after accounting for all expenses, there might be areas of improvement to sustain or further enhance profitability.
Overall, Interpublic Group of Companies Inc has shown mixed results in its profitability ratios, with improvements in some margins over the years, indicating a degree of efficiency in cost management and revenue generation, while also highlighting areas that may require attention for sustained profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.57% | 7.69% | 7.33% | 7.21% | 5.36% |
| Return on assets (ROA) | 3.76% | 5.70% | 4.98% | 4.79% | 1.95% |
| Return on total capital | 33.68% | 41.50% | 40.89% | 41.49% | 34.79% |
| Return on equity (ROE) | 18.16% | 27.86% | 25.71% | 27.02% | 12.13% |
Interpublic Group of Companies Inc has demonstrated a generally improving trend in profitability ratios over the years from 2020 to 2024.
- Operating return on assets (Operating ROA) has increased steadily from 5.36% in 2020 to 7.69% in 2023, before experiencing a slight dip to 6.57% in 2024. This ratio reflects the company's operating efficiency in generating profits from its assets. The consistent improvement indicates effective management of assets to generate operating income.
- Return on assets (ROA) has shown a significant increase from 1.95% in 2020 to 5.70% in 2023, before slightly decreasing to 3.76% in 2024. ROA measures the overall profitability of a company relative to its total assets. The substantial improvement in this ratio signifies the company's ability to generate higher profits in relation to its total assets.
- Return on total capital has generally been high, fluctuating between 33.68% and 41.50% over the years. This ratio shows how effectively the company is utilizing its total capital to generate profits. The consistent performance within this range indicates a sound capital allocation strategy.
- Return on equity (ROE) has displayed a similar increasing trend like other profitability ratios, from 12.13% in 2020 to 27.86% in 2023, before decreasing to 18.16% in 2024. ROE reflects the company's ability to generate a return on the shareholders' equity. The strong growth in ROE signifies the company's effectiveness in using shareholder investments to generate profits.
Overall, Interpublic Group of Companies Inc has shown positive performance in its profitability ratios, demonstrating efficient management of assets, capital, and equity to drive profitability and create value for its stakeholders.