Omnicom Group Inc (OMC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.30 | 6.98 | 7.21 | 7.43 | 9.59 | 7.85 | 7.67 | 8.26 | 9.73 | 8.96 | 9.88 | 9.26 | 10.07 | 9.61 | 10.57 | 10.39 | 10.77 | 10.39 | 10.92 | 9.73 | |
| DOH | days | 43.95 | 52.30 | 50.60 | 49.14 | 38.05 | 46.52 | 47.56 | 44.18 | 37.52 | 40.72 | 36.95 | 39.44 | 36.25 | 38.00 | 34.52 | 35.14 | 33.90 | 35.12 | 33.42 | 37.50 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.30
= 43.95
Omnicom Group Inc's days of inventory on hand (DOH) has shown some fluctuations over the past few years. The trend indicates that DOH has been gradually increasing from around 33 days in mid-2020 to approximately 44 days in early 2023 before slightly decreasing to around 43 days by the end of 2024.
A higher value for DOH indicates that the company is holding inventory for a longer period before it is sold. This could potentially tie up more capital in inventory, increase carrying costs, and pose a risk of obsolescence.
The significant increase in DOH from 2020 to 2023 suggests that Omnicom Group Inc may have experienced challenges in managing its inventory levels efficiently. This situation could be due to factors such as changing consumer demand, supply chain disruptions, or ineffective inventory management practices.
It is important for the company to closely monitor its inventory levels, analyze the reasons behind the increase in DOH, and take necessary steps to optimize inventory turnover to improve working capital efficiency and profitability.
Peer comparison
Dec 31, 2024