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The Interpublic Group of (The Interpublic Group of) Operating Margin % : 20.10% (As of Dec. 2023)


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What is The Interpublic Group of Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. The Interpublic Group of's Operating Income for the three months ended in Dec. 2023 was $608 Mil. The Interpublic Group of's Revenue for the three months ended in Dec. 2023 was $3,023 Mil. Therefore, The Interpublic Group of's Operating Margin % for the quarter that ended in Dec. 2023 was 20.10%.

Good Sign:

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

The historical rank and industry rank for The Interpublic Group of's Operating Margin % or its related term are showing as below:

IPG' s Operating Margin % Range Over the Past 10 Years
Min: 10.34   Med: 11.01   Max: 14.13
Current: 13.62


IPG's Operating Margin % is ranked better than
80.42% of 1037 companies
in the Media - Diversified industry
Industry Median: 3.28 vs IPG: 13.62

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

The Interpublic Group of's Operating Income for the three months ended in Dec. 2023 was $608 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,483 Mil.


The Interpublic Group of Operating Margin % Historical Data

The historical data trend for The Interpublic Group of's Operating Margin % 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 Margin % Chart

The Interpublic Group of Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.96 11.06 14.13 13.58 13.62

The Interpublic Group of Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % 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 18.30 7.53 11.59 14.05 20.10

Competitive Comparison of The Interpublic Group of's Operating Margin %

For the Advertising Agencies subindustry, The Interpublic Group of's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution in the Media - Diversified Industry

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

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



The Interpublic Group of Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

The Interpublic Group of's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1482.7 / 10889.3
=13.62 %

The Interpublic Group of's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=607.6 / 3023.3
=20.10 %

* 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 Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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 Margin % Related Terms

Thank you for viewing the detailed overview of The Interpublic Group of's Operating Margin % 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