Interpublic Group of Companies Inc (IPG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,797,400 | 3,942,600 | 3,647,900 | 3,526,000 | 2,895,000 |
| ROE | 18.16% | 27.86% | 25.71% | 27.02% | 12.13% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $689,500K ÷ $3,797,400K
= 18.16%
Interpublic Group of Companies Inc's return on equity (ROE) has shown a positive trend over the years. In 2020, the ROE stood at 12.13%, indicating a moderate return generated from shareholders' equity. Subsequently, in 2021, the ROE increased significantly to 27.02%, reflecting a substantial improvement in the company's ability to generate profit from shareholders' equity.
The trend continued positively in 2022 and 2023, with ROE figures of 25.71% and 27.86% respectively. These figures suggest that Interpublic Group of Companies Inc effectively utilized its equity to generate returns for its shareholders.
However, in 2024, there was a slight dip in ROE to 18.16%. Although this figure is lower compared to the previous year, it is still above the 2020 level, indicating that the company's profitability relative to shareholders' equity remains healthy.
Overall, the increasing trend in ROE from 2020 to 2023 demonstrates the company's improving efficiency in generating profits from shareholders' equity. The slight decline in 2024 suggests a potential need for further analysis to understand the factors contributing to this change.
Peer comparison
Dec 31, 2024