Omnicom Group Inc (OMC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.52 | 9.73 | 10.07 | 10.76 | 10.20 | |
| DOH | days | 38.35 | 37.52 | 36.25 | 33.91 | 35.77 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.52
= 38.35
To analyze Omnicom Group, Inc.'s days of inventory on hand (DOH) based on the provided data, it is important to note the formula for calculating DOH. DOH is calculated by dividing the average inventory by the cost of goods sold (COGS) and then multiplying the result by the number of days in the period.
Given that the specific values for inventory and COGS are not provided in the table, a trend analysis can be conducted using the DOH metric. A decreasing trend in DOH over the years would indicate that the company is selling its inventory more efficiently, which can be positive for liquidity and profitability. On the other hand, an increasing trend in DOH may suggest that the company is struggling to sell its inventory, potentially leading to excess or obsolete inventory.
By comparing the DOH figures for different years, one can assess whether Omnicom Group, Inc. has been improving its inventory management efficiency over time. Further analysis could involve benchmarking the company's DOH against industry peers to gain a more comprehensive understanding of its performance in this area.
Overall, a detailed examination of Omnicom Group, Inc.'s DOH trend over the years can provide valuable insights into the company's inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2023