Cash flow generation remains inconsistent, highlighted by a $329.7 million working capital drain in 2025Q2 and a dividend payout that persists despite periods of negative free cash flow.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 |
|---|
| Cash from Operations | 915.2M | 1.06B | 554.7M | 608.8M | 2.08B | 1.85B | 1.53B | 565.1M | 881.8M | 513.4M | 674M | 669.5M | 592.9M | 357.2M | 273.5M | 817.3M | 540.8M | 865.3M | 298.1M | 9M | -20.2M | 455.5M | 502M | 873.8M | 148.5M | 300.18M | 562.3M | 504.7M | 277.1M | 249M | 164.4M |
| Operating CF Margin % | - | 9.87% | 5.09% | 5.57% | 20.27% | 20.39% | 14.96% | 5.82% | 11.19% | 6.54% | 8.85% | 8.88% | 8.32% | 5.13% | 3.9% | 12.51% | 8.97% | 12.43% | 4.55% | 0.15% | -0.32% | 7.13% | 8.56% | 14.09% | 2.21% | 5.34% | 12.7% | 13.13% | 8.86% | 9.81% | 7.54% |
| Operating CF Growth % | -125.55% | 90.23% | -8.89% | -70.67% | 12.36% | 20.8% | 170.61% | -35.92% | 71.76% | -23.83% | 0.67% | 12.92% | 65.99% | 30.6% | -66.54% | 51.13% | -37.5% | 190.27% | 3212.22% | 144.55% | -104.43% | -9.26% | -42.55% | 488.42% | -50.53% | -46.62% | 11.41% | 82.14% | 11.29% | 51.46% | -42.38% |
| Net Income | 551.6M | 715.7M | 1.1B | 956.1M | 972.8M | 354.2M | 673.9M | 637.7M | 595M | 632.5M | 480.5M | 505.4M | 288.9M | 464.6M | 551.5M | 281.2M | 143.4M | 295M | 167.6M | -31.7M | -271.9M | -544.9M | -552.9M | 99.5M | -534.5M | 358.66M | 321.9M | 309.9M | 239.1M | 205.2M | 129.8M |
| Depreciation & Amortization | 247.6M | 258.9M | 264.3M | 274M | 283.8M | 290.6M | 278.5M | 202.9M | 157.1M | 160.2M | 157M | 163M | 157.4M | 147.7M | 150.9M | 148.4M | 169.9M | 173.3M | 287.7M | 260.5M | 220.2M | 239.4M | 277.9M | 300.5M | 451.3M | 299.54M | 215.9M | 179.1M | 130.8M | 103.5M | 91.2M |
| Stock-Based Compensation | 57.9M | 64.8M | 46.7M | 50M | 70.1M | 67M | 80.2M | 82.2M | 82M | 85.6M | 70.3M | 54.3M | 43.1M | 44.5M | 51.7M | 50M | 49.5M | 80.1M | 0 | 55.1M | 42.3M | 31.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -104.5M | -28.1M | 5.1M | -27M | -8.2M | -46.4M | 9.7M | 14.1M | 1.1M | 45.7M | 49.5M | 83.5M | 69.4M | 103.6M | 83.9M | 56M | 89.2M | 51.9M | -22.4M | -57.9M | 44.6M | 128.2M | 71.5M | 55M | -191.2M | -31.55M | 10.7M | -12.9M | 12.7M | 4.1M | -18.5M |
| Other Non-Cash Items | 308.2M | 340.4M | 36.9M | 120.6M | 113M | 423.5M | 72.7M | 76.1M | 52.1M | 99.2M | 90.9M | 25M | 39.6M | -63.2M | -102.3M | 31.3M | 69.9M | 97.7M | 8.9M | 36.7M | 78M | 407M | 384.4M | 186.4M | 619.4M | 70.24M | -100K | 100K | 16.6M | -300K | -9.6M |
| Working Capital Changes | -157.7M | -296.5M | -896.7M | -764.9M | 644.1M | 758.3M | 414.2M | -447.9M | -5.5M | -509.8M | -174.2M | -161.7M | -5.5M | -340M | -462.2M | 250.4M | 18.9M | 167.3M | -185.6M | -253.7M | -133.4M | 194.4M | 219.9M | 232.4M | -196.5M | -396.71M | -16.1M | 31M | -86.6M | -27.5M | -72.4M |
| Change in Receivables | -152.7M | -79M | -566.7M | -118.2M | -1.22B | 673.9M | -111.2M | -603.8M | 37.6M | -220.7M | -236.1M | -20.1M | -157.1M | -44.7M | -219.2M | -547.6M | 179.5M | 283.9M | 0 | 235.4M | 39.6M | -73.4M | 264.1M | 0 | -208.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | -151.8M | 0 | 0 | 0 | -38.5M | -300.9M | -379.4M | -67.5M | -282.3M | 66.1M | -270.2M | -128.1M | -77.3M | 164.5M | 92.4M | -97.2M | 0 | -116M | -60.9M | 10.6M | -540.6M | 0 | 76.6M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 98.8M | 204.1M | 47.8M | -408M | 1.86B | -27M | 546M | 428.7M | 311.9M | -126.1M | 400.9M | -177.1M | 417.7M | -120.4M | -62.9M | 646.3M | -173M | 6.8M | 0 | -370M | -152.4M | 243M | -228.8M | 0 | 13.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -125.1M | -151.1M | -85.4M | -430.1M | -185.3M | -216.2M | -161.7M | -2.49B | -196.2M | -263.9M | -202.8M | -200.8M | -224.5M | -210.2M | -58.8M | -108.5M | 29.4M | -404.3M | -267.8M | 11.6M | 166.4M | -544.6M | 84.5M | -477.1M | -696.5M | -944.6M | -351.3M | -243.7M | -71.8M | -72.8M | -154.6M |
| Capital Expenditures | -108.4M | -141.8M | -179.3M | -178.1M | -195.3M | -167.5M | -198.5M | -177.1M | -155.9M | -200.7M | -161.1M | -148.7M | -173M | -169.2M | -140.3M | -96.3M | -67.1M | -138.4M | -147.6M | -127.8M | -140.7M | -194M | -159.6M | -183.2M | -268M | -201.87M | -400.1M | -258.5M | -177M | -79.1M | -69.6M |
| CapEx % of Revenue | 1.06% | 1.33% | 1.65% | 1.63% | 1.91% | 1.85% | 1.94% | 1.82% | 1.98% | 2.56% | 2.12% | 1.97% | 2.43% | 2.43% | 2% | 1.47% | 1.11% | 1.99% | 2.25% | 2.06% | 2.24% | 3.04% | 2.72% | 2.95% | 3.99% | 3.59% | 9.04% | 6.72% | 5.66% | 3.12% | 3.19% |
| Acquisitions | -1M | 0 | 52.4M | -252.6M | -16.3M | -4.9M | -600K | -2.31B | -30.6M | -52M | -40.7M | -53.6M | -61.5M | -145.5M | -63.1M | -8.3M | -61.3M | -78.1M | -81.8M | -30.7M | -91.7M | -175.4M | -224.6M | -281.4M | -310.6M | -576.62M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 6.8M | 11.5M | 3.3M | -1.8M | -203.8M | -43.8M | 37.4M | -4.6M | -9.7M | -11.2M | -1.2M | -12.1M | 10M | 9.7M | 11.8M | -52.8M | 1.2M | 2.1M | 4.7M | 20.5M | 61.8M | 40.4M | 403.5M | -44M | -130.9M | -190.02M | 57.9M | 10.9M | 105M | 5.3M | -76.5M |
| Cash from Financing | -796.4M | -1.02B | -634.3M | -899.4M | -1.08B | -346.2M | -843M | 1.85B | -1B | -666.4M | -472.8M | -343.9M | -1.21B | 131.3M | -541M | -547.7M | -267M | -275.8M | -37.3M | -129.7M | 410.1M | -250.2M | 467.7M | -459.3M | 675.5M | 365.18M | 52.2M | -201.9M | 85.2M | -120.4M | -13.9M |
| Debt Issued (Net) | 21.3M | -249.7M | 287.6M | -60M | -583.6M | 144M | -423.1M | 2.37B | -321.6M | -58M | 49.8M | 84.7M | -597M | 655.7M | 3.6M | -199.9M | -210.2M | -225.5M | 2.3M | 20.6M | -40.6M | -233.7M | -158.8M | -357.2M | 860.4M | 597.9M | 383.39M | 144.92M | 256.3M | -1.3M | 70.8M |
| Equity Issued (Net) | -257.4M | -230.1M | -350.2M | -320.1M | 8M | 6.5M | 4.3M | -101.6M | -287M | -303.3M | -271.7M | -275.1M | -481.8M | -350.5M | -400.8M | -265.9M | 0 | -11.3M | 0 | 900K | 511.2M | 25.6M | 696.9M | 51.1M | -32.4M | -188.1M | -234.39M | -129.69M | -106.3M | -67.3M | -38.5M |
| Dividends Paid | -489.4M | -496.5M | -479.1M | -457.3M | -427.7M | -398.1M | -363.1M | -322.1M | -280.3M | -238.4M | -195.5M | -159M | -137.6M | -115M | -145.7M | -41.1M | -49.8M | -27.6M | -27.6M | -47M | -42.6M | -43.4M | -26.4M | -145.6M | -144.4M | -123.51M | -90.4M | -79.7M | -61.2M | -51.8M | -46.1M |
| Share Repurchases | -257.4M | -230.1M | -350.2M | -320.1M | 0 | 0 | 0 | -117.1M | -300.1M | -303.3M | -285.2M | -275.1M | -481.8M | -350.5M | -400.8M | -265.9M | 0 | -11.3M | 0 | 0 | 0 | 0 | 0 | -7.9M | -118M | -236.76M | -300.5M | -164.93M | -144.1M | -86.9M | -69.7M |
| Other Financing | -70.9M | -43.6M | -92.6M | -62M | -80.9M | -98.6M | -61.1M | -95M | -116M | -66.7M | -55.4M | 5.5M | 4.1M | -58.9M | -21.1M | -62.3M | -29.2M | -11.4M | -12M | -104.2M | -40.5M | -42.1M | -18.2M | 2.7M | -78.5M | -41.79M | 0 | -13.65M | -3.6M | 0 | -100K |
| Net Change in Cash | -1M | -198.7M | -158M | -719.1M | 760.7M | 1.32B | 518.5M | -120.5M | -302.5M | -405.3M | -157.7M | 23.8M | -938M | 272.1M | -373M | 180.5M | 388M | 92.3M | 59.2M | -120.2M | 525.5M | -321.5M | 1.07B | -2.2M | 90.6M | -320.76M | 220.9M | 70.7M | 246.7M | 50M | 4.8M |
| Free Cash Flow | 806.8M | 913.4M | 375.4M | 430.7M | 1.88B | 1.68B | 1.33B | 388M | 725.9M | 312.7M | 512.9M | 520.8M | 419.9M | 188M | 133.2M | 721M | 473.7M | 726.9M | 150.5M | -118.8M | -160.9M | 261.5M | 342.4M | 690.6M | -119.5M | 98.31M | 162.2M | 246.2M | 100.1M | 169.9M | 94.8M |
| FCF Margin % | 7.9% | 8.54% | 3.45% | 3.94% | 18.36% | 18.54% | 13.02% | 3.99% | 9.21% | 3.99% | 6.74% | 6.91% | 5.9% | 2.7% | 1.9% | 11.04% | 7.86% | 10.44% | 2.3% | -1.92% | -2.56% | 4.09% | 5.84% | 11.13% | -1.78% | 1.75% | 3.66% | 6.4% | 3.2% | 6.7% | 4.35% |
| FCF Growth % | -12.54% | 143.31% | -12.84% | -77.09% | 11.94% | 26.23% | 242.96% | -46.55% | 132.14% | -39.03% | -1.52% | 24.03% | 123.35% | 41.14% | -81.53% | 52.21% | -34.83% | 382.99% | 226.68% | 26.17% | -161.53% | -23.63% | -50.42% | 677.91% | -221.56% | -39.39% | -34.12% | 145.95% | -41.08% | 79.22% | -58.67% |
| FCF per Share | 2.19 | 2.42 | 0.97 | 1.09 | 4.72 | 4.27 | 3.40 | 1.00 | 1.83 | 0.77 | 1.23 | 1.22 | 0.98 | 0.39 | 0.25 | 1.33 | 0.93 | 1.40 | 0.30 | -0.28 | -0.38 | 0.63 | 0.89 | 1.81 | -0.32 | 0.27 | 0.54 | 0.80 | 0.47 | 0.70 | 0.40 |
| FCF Conversion (FCF/Net Income) | 1.46x | 1.53x | 0.51x | 0.65x | 2.18x | 5.26x | 2.33x | 0.91x | 1.52x | 0.84x | 1.48x | 1.40x | 2.21x | 0.80x | 0.51x | 3.13x | 4.46x | 2.93x | 1.78x | -0.28x | 0.08x | -0.85x | -1.11x | 8.78x | -0.28x | 0.84x | 1.75x | 1.63x | 1.16x | 1.21x | 1.27x |
| Interest Paid | 0 | 231M | 221.6M | 171.1M | 175.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 138.6M | 183.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 336.1M | 320.3M | 255.7M | 229.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 57.3M | 104.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in recent financial statements, IPG's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a negative 0.59 in 2025Q2 to a high of 11.13 in 2024Q3, highlighting a significant disconnect between accounting profits and actual cash generation capabilities.
The wide variance in the OCF/NI ratio suggests that reported net income is heavily influenced by non-cash items and timing differences rather than consistent operational cash generation. Investors should monitor whether this divergence stems from aggressive revenue recognition or the inherent lumpiness of project-based agency billing cycles.
Based on the provided cash flow data, IPG's free cash flow margins have fluctuated wildly, swinging from a peak of 29.2% in 2024Q4 to a negative 7.7% in 2024Q1, indicating that the firm's ability to generate surplus cash is highly sensitive to quarterly operational shifts.
This erratic FCF trajectory suggests that the company struggles to maintain a predictable cash conversion profile throughout the fiscal year. The recurring negative FCF quarters warrant further investigation into whether these are seasonal phenomena or indicative of a structural inability to manage costs during revenue troughs.
According to the quarterly cash flow filings, IPG frequently experiences massive working capital outflows, such as the $329.7 million drain observed in 2025Q2, which consistently undermines the firm's ability to convert operating income into tangible cash reserves for shareholders.
These significant periodic outflows suggest that the company is often forced to finance client projects or media buys well in advance of receiving payment. This reliance on working capital to bridge the gap between service delivery and cash collection appears to be a persistent drag on liquidity.
As evidenced by the historical cash flow data, IPG has maintained a consistent dividend payout of approximately $120 million per quarter, even during periods of negative free cash flow, suggesting a management priority on shareholder returns that may be straining the firm's internal cash flexibility.
The commitment to dividends and share repurchases, despite the observed volatility in operating cash flow, implies a high degree of confidence in long-term cash stability. However, investors should monitor if this capital allocation strategy limits the firm's capacity to invest in necessary data-infrastructure upgrades during cyclical downturns.
Quick answers to the most common questions about buying IPG stock.
The Interpublic Group of Companies, Inc. (IPG) generated $1.06B in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
The Interpublic Group of Companies, Inc. (IPG) generated $913.4M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Interpublic Group of Companies, Inc. (IPG) spent $141.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, The Interpublic Group of Companies, Inc. (IPG) returned $496.5M to shareholders via cash dividends and spent $230.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.