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IPG (The Interpublic Group of) Degree of Operating Leverage : 12.06 (As of Mar. 2025)


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What is The Interpublic Group of Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The Interpublic Group of's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 12.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for The Interpublic Group of's Degree of Operating Leverage or its related term are showing as below:

IPG's Degree of Operating Leverage is ranked worse than
83.64% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs IPG: 12.06

The Interpublic Group of Degree of Operating Leverage Historical Data

The historical data trend for The Interpublic Group of's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

The Interpublic Group of Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.28 11.65 0.49 -38.47 11.96

The Interpublic Group of Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage 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 -113.66 22.40 23.88 11.96 12.06

Competitive Comparison of The Interpublic Group of's Degree of Operating Leverage

For the Advertising Agencies subindustry, The Interpublic Group of's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Interpublic Group of's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, The Interpublic Group of's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where The Interpublic Group of's Degree of Operating Leverage falls into.


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The Interpublic Group of Degree of Operating Leverage Calculation

The Interpublic Group of's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1011.3 (Mar. 2025) / 1641.3 (Mar. 2024) - 1 )/( 10518.4 (Mar. 2025) / 10864.2 (Mar. 2024) - 1 )
=-0.3838/-0.0318
=12.06***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


The Interpublic Group of  (NYSE:IPG) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


The Interpublic Group of Degree of Operating Leverage Related Terms

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


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 about 65% of revenue in the US and 17% in the UK and Europe. IPG agreed to merge with Omnicom in December 2024, pending regulatory approval.
Executives
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
Philippe Krakowsky officer: SVP, Dir of Corporate Comms
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
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
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