Interpublic Group of Companies Inc (IPG)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 1,204,100 1,243,800 1,487,700 1,479,900 1,483,400 1,320,400 1,285,400 1,323,800 1,381,200 1,393,900 1,403,600 1,438,900 1,436,200 1,202,300 1,099,400 755,500 588,400 856,300 888,000 1,111,700
Total assets US$ in thousands 18,325,800 17,083,200 17,011,800 17,286,100 19,267,300 17,027,300 17,110,000 16,664,100 18,845,000 16,875,200 17,249,200 17,880,900 19,909,200 17,805,300 17,321,700 16,349,700 18,042,700 16,074,700 14,896,900 16,428,900
Operating ROA 6.57% 7.28% 8.75% 8.56% 7.70% 7.75% 7.51% 7.94% 7.33% 8.26% 8.14% 8.05% 7.21% 6.75% 6.35% 4.62% 3.26% 5.33% 5.96% 6.77%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,204,100K ÷ $18,325,800K
= 6.57%

Interpublic Group of Companies Inc's operating return on assets (Operating ROA) has shown some fluctuations over the reported periods. The trend indicates variations in the efficiency of generating operating income from the company's assets.

The Operating ROA started at 6.77% as of March 31, 2020, and experienced a gradual decrease to 3.26% by December 31, 2020. This downward trend suggests a potential decline in the company's ability to generate profits from its assets during that period.

However, from March 31, 2021, there was a reversal in the trend as the Operating ROA began to increase. The percentage improved significantly from 4.62% in March 2021 to 8.56% by March 31, 2024, reflecting a positive comeback in operational efficiency and profitability.

The Operating ROA peaked at 8.75% on June 30, 2024, indicating a strong performance in utilizing the company's assets to generate operating income. Although there was a slight dip to 6.57% by December 31, 2024, the overall trend shows a positive trajectory.

In conclusion, the analysis of Interpublic Group of Companies Inc's Operating ROA demonstrates a mixture of fluctuations and improvements over the reported periods, showcasing the company's ability to enhance operational efficiency and profitability.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Interpublic Group of Companies Inc
IPG
6.57%
Omnicom Group Inc
OMC
7.68%