Interpublic Group of Companies Inc (IPG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,615,200 | 1,431,100 | 1,377,700 | 551,300 | 1,060,100 |
| Long-term debt | US$ in thousands | 2,917,500 | 2,870,700 | 2,908,600 | 2,915,800 | 2,771,900 |
| Total stockholders’ equity | US$ in thousands | 3,942,600 | 3,614,600 | 3,526,000 | 2,895,000 | 2,775,900 |
| Return on total capital | 23.54% | 22.07% | 21.41% | 9.49% | 19.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,615,200K ÷ ($2,917,500K + $3,942,600K)
= 23.54%
Interpublic Group Of Cos., Inc. has shown consistent performance in terms of its return on total capital over the past five years. The trend indicates a generally positive outcome, with the return on total capital ranging from 15.77% in 2020 to 22.69% in 2022. The company's return on total capital for 2023 stood at 20.77%, which is slightly lower than the previous year but still reflects a strong performance.
Overall, Interpublic Group Of Cos., Inc. has been effectively utilizing its capital to generate returns for its shareholders, with the return on total capital consistently remaining above 15% over the period analyzed. This indicates efficient capital allocation and management practices within the company, which have contributed to its financial success and shareholder value.
Peer comparison
Dec 31, 2023