Interpublic Group of Companies Inc (IPG)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,199,900 | 1,271,500 | 1,517,800 | 1,512,100 | 1,517,900 | 1,353,300 | 1,285,400 | 1,323,800 | 1,381,200 | 1,420,900 | 1,436,800 | 1,484,200 | 1,492,300 | 1,482,300 | 1,415,300 | 1,156,300 | 967,300 | 969,000 | 960,700 | 1,093,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,797,400 | 3,725,800 | 3,835,600 | 3,824,100 | 3,942,600 | 3,680,200 | 3,686,300 | 3,559,300 | 3,647,900 | 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 |
| Return on total capital | 31.60% | 34.13% | 39.57% | 39.54% | 38.50% | 36.77% | 34.87% | 37.19% | 37.86% | 41.73% | 41.81% | 42.56% | 42.32% | 46.74% | 46.21% | 40.23% | 33.41% | 35.59% | 39.21% | 43.17% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,199,900K ÷ ($—K + $3,797,400K)
= 31.60%
Interpublic Group of Companies Inc's return on total capital has shown fluctuating trends over the reporting periods. The ratio peaked at 46.74% as of September 30, 2021, reflecting strong profitability relative to the total capital employed. However, the ratio declined to 31.60% by December 31, 2024, indicating a decrease in the company's ability to generate returns on its total capital. Overall, Interpublic Group's return on total capital has displayed some volatility, suggesting the need for close monitoring and further analysis to understand the factors influencing the company's financial performance.
Peer comparison
Dec 31, 2024