Interpublic Group of Companies Inc (IPG)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 689,500 | 1,098,400 | 938,000 | 952,800 | 351,100 |
| Revenue | US$ in thousands | 10,691,700 | 10,889,300 | 10,927,800 | 10,240,700 | 9,061,000 |
| Net profit margin | 6.45% | 10.09% | 8.58% | 9.30% | 3.87% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $689,500K ÷ $10,691,700K
= 6.45%
Interpublic Group of Companies Inc has shown variability in its net profit margin over the past five years. The net profit margin stood at 3.87% as of December 31, 2020, indicating that the company generated $0.0387 in net profit for every dollar of revenue. This metric increased significantly to 9.30% by December 31, 2021, reflecting improved profitability. In the following year, the net profit margin slightly decreased to 8.58% on December 31, 2022, but remained relatively strong compared to the base year.
By December 31, 2023, the net profit margin further improved to 10.09%, showcasing the company's ability to effectively control costs and increase profitability. However, there was a notable decline in profitability by December 31, 2024, with the net profit margin dropping to 6.45%. This decrease may raise concerns about the company's operational efficiency or changes in its cost structure during that period.
Overall, Interpublic Group of Companies Inc has demonstrated varying levels of profitability over the years, with notable improvements in some periods and declines in others. Effective management of costs and sustained revenue growth will be essential for the company to maintain a healthy net profit margin in the future.
Peer comparison
Dec 31, 2024