Omnicom Group Inc (OMC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,692,200 | 14,289,100 | 14,289,400 | 13,171,100 | 14,953,700 |
| Property, plant and equipment | US$ in thousands | 874,900 | 900,100 | 992,100 | 585,200 | 663,400 |
| Fixed asset turnover | 16.79 | 15.88 | 14.40 | 22.51 | 22.54 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,692,200K ÷ $874,900K
= 16.79
Omnicom Group, Inc.'s fixed asset turnover has shown fluctuating trends over the past five years. The fixed asset turnover ratio measures the efficiency with which the company generates revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio increased to 16.79, indicating that Omnicom Group generated $16.79 in revenue for every dollar invested in fixed assets during the year. This improvement suggests enhanced efficiency in utilizing fixed assets to generate sales compared to the previous year.
The ratio was relatively stable in 2022 and 2021, standing at 15.88 and 14.40, respectively. While these figures indicate consistent performance in utilizing fixed assets to generate revenue, there was a slight decrease in efficiency in 2021 compared to the previous year.
In contrast, the fixed asset turnover ratio was notably higher in 2020 and 2019, at 22.51 and 22.54, respectively. This signifies that Omnicom Group was more effective in generating revenue from its fixed assets during those years, indicating a higher level of operational efficiency in utilizing its fixed asset base.
Overall, fluctuations in the fixed asset turnover ratio of Omnicom Group over the five-year period may be indicative of varying levels of efficiency in generating revenue from its investment in fixed assets. It is essential for the company to consistently monitor and improve its asset utilization to optimize operational efficiency and financial performance.
Peer comparison
Dec 31, 2023