Interpublic Group of Companies Inc (IPG)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 18,325,800 | 19,267,300 | 18,845,000 | 19,909,200 | 18,042,700 |
| ROA | 3.76% | 5.70% | 4.98% | 4.79% | 1.95% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $689,500K ÷ $18,325,800K
= 3.76%
Interpublic Group of Companies Inc's return on assets (ROA) has been fluctuating over the past five years. The ROA increased from 1.95% as of December 31, 2020, to 4.79% as of December 31, 2021, indicating improved efficiency in generating profits relative to its assets. Subsequently, the ROA further rose to 4.98% as of December 31, 2022, and peaked at 5.70% as of December 31, 2023, reflecting continued growth in profitability relative to the company's asset base.
However, there was a slight decline in the ROA to 3.76% as of December 31, 2024, suggesting a potential decrease in the company's efficiency in generating profits from its assets compared to the previous year. It is essential for Interpublic Group of Companies Inc to monitor and manage its asset utilization effectively to sustain or improve its ROA in the future.
Peer comparison
Dec 31, 2024