GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Interpublic Group of Companies Inc (NYSE:IPG) » Definitions » Operating Income

The Interpublic Group of (The Interpublic Group of) Operating Income : $1,478 Mil (TTM As of Mar. 2024)


View and export this data going back to 1971. Start your Free Trial

What is The Interpublic Group of Operating Income?

The Interpublic Group of's Operating Income for the three months ended in Mar. 2024 was $185 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $1,478 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The Interpublic Group of's Operating Income for the three months ended in Mar. 2024 was $185 Mil. The Interpublic Group of's Revenue for the three months ended in Mar. 2024 was $2,496 Mil. Therefore, The Interpublic Group of's Operating Margin % for the quarter that ended in Mar. 2024 was 7.40%.

Good Sign:

The Interpublic Group of Companies Inc operating margin is expanding. Margin expansion is usually a good sign.

The Interpublic Group of's 5-Year average Growth Rate for Operating Margin % was 6.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Interpublic Group of's annualized ROC % for the quarter that ended in Mar. 2024 was 5.46%. The Interpublic Group of's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 50.28%.


The Interpublic Group of Operating Income Historical Data

The historical data trend for The Interpublic Group of's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Interpublic Group of Operating Income Chart

The Interpublic Group of Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,119.90 1,002.20 1,446.80 1,483.60 1,482.70

The Interpublic Group of Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 189.90 309.00 376.20 607.60 184.80

The Interpublic Group of Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,478 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The Interpublic Group of  (NYSE:IPG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The Interpublic Group of's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=739.2 * ( 1 - 29.45% )/( (9587 + 9500.9)/ 2 )
=521.5056/9543.95
=5.46 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

The Interpublic Group of's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=893.6/( ( (1799.3 + max(-1229.7, 0)) + (1755.1 + max(-883.6, 0)) )/ 2 )
=893.6/( ( 1799.3 + 1755.1 )/ 2 )
=893.6/1777.2
=50.28 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7998 + 0 + 566.3) - (9060.8 + 684.7 + 48.5)
=-1229.7

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6474.6 + 0 + 620.1) - (7257.6 + 707.7 + 12.999999999998)
=-883.6

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

The Interpublic Group of's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=184.8/2495.9
=7.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


The Interpublic Group of Operating Income Related Terms

Thank you for viewing the detailed overview of The Interpublic Group of's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


The Interpublic Group of (The Interpublic Group of) Business Description

Traded in Other Exchanges
Address
909 Third Avenue, New York, NY, USA, 10022
Interpublic Group is among the world's largest advertising holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 80% of its revenue from developed regions such as the United States and Europe.
Executives
Jorge L. Benitez director 5201 BLUE LAGOON DRIVE, SUITE 250, MIAMI FL 33126
Dawn E Hudson director 2530 ZANKER ROAD, SAN JOSE CA 95131
Jocelyn Carter-miller director 3698 NW 15TH STREET, LAUDERHILL FL 33311
Christopher F Carroll officer: SVP, Controller & CAO 3 TIMES SQUARE, 12TH FL., NEW YORK NY 10036
Andrew Bonzani officer: SVP, General Counsel & Sec. 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Ellen Tobi Johnson officer: SVP of Finance & Treasurer C/O IPG, 1114 AVE OF THE AMERICAS, NEW YORK NY 10036
Mary Guilfoile director 227 WASHINGTON STREET STE.200, CONSHOHOCKEN PA 19428
Michael Isor Roth director THE INTERPUBLIC GROUP OF COMPANIES, INC., 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Philippe Krakowsky officer: SVP, Dir of Corporate Comms
H John Greeniaus director
Linda S Sanford director 4 IRVING PLACE, NEW YORK NY 10003
Julie Connors officer: SVP,Audit & Chief Risk Officer C/O IPG, 1114 AVE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
David M Thomas director 930 CLAPBOARD RIDGE ROAD, GREENWICH CT 06830
Frank Mergenthaler officer: Exec. VP & CFO 1114 AVENUE OF THE AMERICAS, 19TH FLOOR, NEW YORK NY 10036
Patrick Q Moore director 625 ELMWOOD DRIVE NE, ATLANTA GA 30306