Interpublic Group of Companies Inc (IPG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,279,000 | 1,636,200 | 1,491,500 | 1,462,900 | 1,007,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,797,400 | 3,942,600 | 3,647,900 | 3,526,000 | 2,895,000 |
| Return on total capital | 33.68% | 41.50% | 40.89% | 41.49% | 34.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,279,000K ÷ ($—K + $3,797,400K)
= 33.68%
Interpublic Group of Companies Inc has shown a consistent and strong performance in terms of return on total capital in the recent years. The return on total capital has increased from 34.79% as of December 31, 2020, to 41.50% as of December 31, 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors. However, there was a slight decrease to 33.68% as of December 31, 2024, which could be a point of concern and may require further analysis to understand the underlying reasons for the decline. Overall, the trend in return on total capital for Interpublic Group of Companies Inc showcases its ability to efficiently deploy capital to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2024