Interpublic Group of Companies Inc (IPG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,098,400 | 938,000 | 952,800 | 351,100 | 656,000 |
| Total assets | US$ in thousands | 19,267,300 | 18,811,700 | 19,909,200 | 18,042,700 | 17,751,900 |
| ROA | 5.70% | 4.99% | 4.79% | 1.95% | 3.70% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,098,400K ÷ $19,267,300K
= 5.70%
Interpublic Group Of Cos., Inc.'s return on assets (ROA) has shown a positive trend over the past five years. The company's ROA increased from 3.70% in 2019 to 5.70% in 2023, indicating the company's ability to generate more profit per dollar of assets employed. This improvement suggests that Interpublic Group has become more efficient in generating earnings from its asset base.
The consistent increase in ROA reflects positively on the company's management efficiency and profitability. It also signifies that Interpublic Group has been effectively managing its assets to generate higher returns for its shareholders. Overall, the rising trend in ROA demonstrates a sustainable improvement in the company's operational performance and financial health over the years.
Peer comparison
Dec 31, 2023