Interpublic Group of Companies Inc (IPG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,942,600 | 3,614,600 | 3,526,000 | 2,895,000 | 2,775,900 |
| ROE | 27.86% | 25.95% | 27.02% | 12.13% | 23.63% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,098,400K ÷ $3,942,600K
= 27.86%
Interpublic Group of Cos., Inc. has shown a varying return on equity (ROE) over the past five years. The ROE has ranged from a low of 12.13% in 2020 to a high of 27.86% in 2023. This indicates fluctuations in the company's ability to generate profit from shareholders' equity during this period.
The ROE in 2021 was 27.02%, slightly lower than the peak in 2023 but still reflective of strong performance. The increase in 2023 to 27.86% indicates an improvement in the company's profitability and efficiency in utilizing shareholder funds to generate earnings.
The significant drop in ROE to 12.13% in 2020 suggests challenges in generating returns in that particular year. However, the subsequent increase in 2021 and the strong performance in 2023 indicate that the company has been able to recover and improve its profitability.
Overall, the fluctuating ROE of Interpublic Group of Cos., Inc. suggests varying levels of success in generating returns on equity over the past five years. It is important for investors and analysts to further investigate the factors contributing to these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023