Omnicom Group Inc (OMC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 1.70 | 1.76 | 1.69 | 1.69 | 1.91 | |
| DSO | days | 215.14 | 206.83 | 216.42 | 216.53 | 191.10 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.70
= 215.14
Omnicom Group, Inc.'s Days Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after making a sale. Over the past five years, the trend in DSO has shown fluctuations.
In 2019, the DSO was at its lowest level at 191.10 days, indicating a quicker collection of sales revenue. However, in the following years, DSO increased, reaching its peak in 2021 at 216.42 days. This rise suggests a slower collection of sales receivables, potentially impacting the company's cash flow and liquidity.
Although there was a slight improvement in 2022 with a DSO of 206.83 days, the figure increased again in 2023 to 215.14 days. The upward trend in DSO may point to challenges in credit management or payment collection processes, which could put pressure on working capital and overall financial health.
In conclusion, monitoring and potentially improving Omnicom Group, Inc.'s DSO is crucial to ensure efficient management of receivables and cash flow, ultimately impacting the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2023