Omnicom Group Inc (OMC)

Short-term

Turnover ratios

Omnicom Group Inc's activity ratios provide insights into its efficiency in managing its assets and liabilities.

1. Inventory Turnover:
- Omnicom's inventory turnover has shown a slight decline over the years, from 10.76 in 2020 to 8.30 in 2024. This indicates that the company is selling its inventory less frequently compared to previous years.

2. Receivables Turnover:
- The receivables turnover ratio has remained relatively stable, ranging between 1.69 and 1.76 from 2020 to 2024. This suggests that Omnicom is collecting its receivables at a consistent pace.

3. Payables Turnover:
- Omnicom's payables turnover ratio has fluctuated slightly, with a range of 1.02 to 1.11 from 2020 to 2024. This indicates that the company is managing its payments to suppliers within a reasonable range.

4. Working Capital Turnover:
- The working capital turnover data is unavailable for 2021 onwards. However, in 2020, the company had a working capital turnover of 202.63, implying that Omnicom generated revenue efficiently relative to its working capital.

Overall, Omnicom's activity ratios provide a mixed picture of its operational efficiency, with some ratios remaining stable while others showing a slight decline or fluctuation over the years. Further analysis and comparison with industry benchmarks would help in better evaluating the company's performance in managing its assets and liabilities.

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Average number of days

Omnicom Group Inc's activity ratios reflect its efficiency in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The company's DOH has shown a gradual increase over the years, from 33.91 days in 2020 to 43.95 days in 2024. This indicates that Omnicom is taking longer to sell its inventory, possibly due to changes in consumer demand or inventory management practices.

2. Days of Sales Outstanding (DSO): Omnicom's DSO has remained relatively stable, ranging from 206.83 days in 2022 to 216.53 days in 2020. This suggests that the company is maintaining consistent credit policies or experiencing similar payment patterns from customers over the years.

3. Number of Days of Payables: The number of days of payables for Omnicom has fluctuated year over year, with a decrease from 359.13 days in 2021 to 328.95 days in 2022, before increasing to 338.24 days in 2024. This indicates variations in the company's payment terms with suppliers or changes in its cash management strategies.

Overall, while Omnicom's DSO and DOH have been relatively stable or increasing, the number of days of payables has shown fluctuations. The company may need to monitor its inventory turnover and payment cycles to optimize working capital efficiency and maintain healthy liquidity levels.

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Long-term

Omnicom Group Inc's fixed asset turnover ratio has shown fluctuations over the years, decreasing from 22.51 in 2020 to 14.40 in 2021, then gradually increasing to 19.02 in 2024. This ratio indicates the company's ability to generate sales from its investment in fixed assets. The decreasing trend initially may suggest inefficiency in utilizing fixed assets but the subsequent increase points towards improved asset utilization efficiency.

The total asset turnover ratio, on the other hand, has been relatively stable, ranging from 0.48 in 2020 to 0.53 in 2022 and 2024, with a slight dip to 0.52 in 2023. This ratio reflects the company's efficiency in generating sales from its total assets. The stable trend suggests consistency in the company's overall asset utilization efficiency over the years.

Overall, while the fixed asset turnover ratio showed more significant fluctuations, the total asset turnover ratio remained relatively stable, indicating that Omnicom Group Inc has managed to effectively utilize both fixed and total assets to generate sales, albeit with some variations in efficiency levels.