Interpublic Group of Companies Inc (IPG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,482,600 | 1,381,200 | 1,436,200 | 588,400 | 1,086,000 |
| Total assets | US$ in thousands | 19,267,300 | 18,811,700 | 19,909,200 | 18,042,700 | 17,751,900 |
| Operating ROA | 7.69% | 7.34% | 7.21% | 3.26% | 6.12% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,482,600K ÷ $19,267,300K
= 7.69%
Interpublic Group Of Cos., Inc.'s operating return on assets (Operating ROA) has displayed a consistent trend over the past five years. The company's operating ROA ranged from 5.55% in 2020 to 7.87% in 2022, with a slight decrease to 7.70% in 2023. This indicates that the company generates earnings from its operations relative to its total assets invested in the business.
The overall trend suggests that Interpublic Group Of Cos., Inc. has been effectively utilizing its assets to generate operating income. The higher the operating ROA, the more efficient the company is in generating profits relative to its assets.
Although there was a slight dip in 2023 compared to 2022, the operating ROA remained relatively stable and above 7% over the past three years. This consistency indicates that the company has been able to maintain its operational efficiency in utilizing its assets to generate earnings.
Overall, based on the operating ROA trend, Interpublic Group Of Cos., Inc. has been able to effectively manage and generate returns from its assets, showcasing operational efficiency and performance over the five-year period.
Peer comparison
Dec 31, 2023