How did WPP Group perform financially before September 11?
WPP Groups current ratio for the year 2000 was .8663. The fact that the current ratio is less than one implies a possible shortage of current assets. If WPP wants to increase the average of its current assets and liabilities, the company will have to make better use of the assets that are available. WPP Groups debt-to-equity ratio for the year 2000 was 1.73. Since the debt-to- equity ratio is greater than one, it could mean that WPP is relying heavily on debt financing. Since WPP is the largest communications service company in the world the company is able to borrow money for financing. WPP Groups return on assets for the year 2000 was 6.6%. This percentage indicates that WPP Group is handling its assets well. WPP Group financials for the year 2000 in millions are as follows: • Total Revenue 4,448.81, • EBIT 400.5, • Net Income 365.22, • Assets 13,360.92, and • Debt 8,951.8. WPP Group financial for the 4th quarter of the year 2000 in millions are as follows: • Total Revenue 1,368.3, •
