Interpublic Group of Companies Inc (IPG)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,628,700 | 1,408,700 | 1,385,600 | 1,400,600 | 1,432,900 | 1,436,300 | 1,422,200 | 1,460,500 | 1,377,700 | 1,131,600 | 1,019,100 | 649,700 | 551,300 | 797,300 | 833,000 | 1,074,500 | 1,060,100 | 1,034,700 | 1,004,100 | 974,900 |
| Long-term debt | US$ in thousands | 2,917,500 | 2,916,200 | 2,915,400 | 2,871,500 | 2,870,700 | 2,902,500 | 2,906,100 | 2,908,100 | 2,908,600 | 2,908,300 | 2,907,900 | 2,906,900 | 2,915,800 | 3,411,300 | 3,411,700 | 3,410,900 | 2,771,900 | 3,367,100 | 3,563,800 | 3,663,700 |
| Total stockholders’ equity | US$ in thousands | 3,942,600 | 3,680,200 | 3,686,300 | 3,559,300 | 3,614,600 | 3,404,600 | 3,436,700 | 3,487,000 | 3,526,000 | 3,171,400 | 3,062,900 | 2,874,000 | 2,895,000 | 2,722,600 | 2,450,400 | 2,532,500 | 2,775,900 | 2,469,000 | 2,423,900 | 2,315,300 |
| Return on total capital | 23.74% | 21.36% | 20.99% | 21.78% | 22.09% | 22.77% | 22.42% | 22.84% | 21.41% | 18.61% | 17.07% | 11.24% | 9.49% | 13.00% | 14.21% | 18.08% | 19.11% | 17.73% | 16.77% | 16.31% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,628,700K ÷ ($2,917,500K + $3,942,600K)
= 23.74%
Interpublic Group Of Cos., Inc. has maintained a relatively stable return on total capital over the past eight quarters, ranging from 20.15% to 22.69%. This indicates the company's ability to generate profits from the total capital employed in its operations.
The company's return on total capital has remained above 20% in all quarters, suggesting efficient utilization of its capital resources to generate earnings for its stakeholders. However, there was a slight decline in the return on total capital from Q4 2022 to Q1 2023, before showing a slight increase in the most recent quarter.
Overall, Interpublic Group Of Cos., Inc. has demonstrated consistency in delivering returns on its total capital, signaling effective management of its financial resources to create value for its investors.
Peer comparison
Dec 31, 2023