The Interpublic Group of Companies, Inc. (IPG) saw its loss narrow to $1.80 million in the quarter ended compared with $20.90 million, a year ago. Revenue during the quarter went up marginally by 2.35 percent to $1,676 million from $1,637.50 million in the previous year period. Operating margin for the quarter period stood at positive 0.47 percent as compared to a negative 0.71 percent for the previous year period.
Operating income for the quarter was $7.80 million, compared with an operating loss of $11.70 million in the previous year period.
Operating cash flow remains negative
The Interpublic Group of Companies, Inc. has spent $796.90 million cash to meet operating activities during the quarter as against cash outgo of $725.70 million in the last year period. The company has spent $20 million cash to meet investing activities during the quarter as against cash outgo of $47.10 million in the last year period.
The company has spent $51.10 million cash to carry out financing activities during the quarter as against cash outgo of $90.70 million in the last year period. It has made net debt repayment of $34.30 million. It has spent net of $42.10 million on repurchase of common stocks.
Cash and cash equivalents stood at $734.30 million as on Mar. 31, 2015, down 4.76 percent or $36.70 million from $771 million on Mar. 31, 2014.
Working capital turns positive
Working capital of The Interpublic Group of Companies, Inc. has turned positive to $162.60 million on Mar. 31, 2015 from negative $278.30 million on Mar. 31, 2014. Current ratio was at 1.03 as on Mar. 31, 2015, up from 0.96 on Mar. 31, 2014.
Days sales outstanding went down to 219 days for the quarter compared with 236 days for the same period last year.
Debt moves up
The Interpublic Group of Companies, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,758.30 million as on Mar. 31, 2015, up 6.24 percent or $103.30 million from $1,655 million on Mar. 31, 2014. Total debt was 15.70 percent of total assets as on Mar. 31, 2015, compared with 14.07 percent on Mar. 31, 2014. Debt to equity ratio was at 0.90 as on Mar. 31, 2015, up from 4.03 as on Mar. 31, 2014. Interest coverage ratio improved to 0.37 for the quarter from 0.58 for the same period last year.
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