Omnicom Group Inc (OMC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,689,100 | 15,427,800 | 15,123,300 | 14,879,400 | 14,692,200 | 14,499,500 | 14,364,800 | 14,322,100 | 14,289,100 | 14,276,700 | 14,268,300 | 14,272,700 | 14,289,300 | 14,190,500 | 13,962,000 | 13,191,100 | 13,171,100 | 13,555,300 | 13,972,600 | 14,891,700 |
| Property, plant and equipment | US$ in thousands | 824,700 | 868,300 | 859,900 | 860,200 | 874,900 | 861,900 | 883,200 | 884,000 | 900,100 | 863,100 | 909,600 | 970,600 | 992,100 | 542,800 | 549,600 | 564,200 | 585,200 | 588,100 | 599,200 | 632,500 |
| Fixed asset turnover | 19.02 | 17.77 | 17.59 | 17.30 | 16.79 | 16.82 | 16.26 | 16.20 | 15.88 | 16.54 | 15.69 | 14.71 | 14.40 | 26.14 | 25.40 | 23.38 | 22.51 | 23.05 | 23.32 | 23.54 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,689,100K ÷ $824,700K
= 19.02
Omnicom Group Inc's fixed asset turnover ratio measures how efficiently the company generates revenue from its fixed assets over a specific period. The trend analysis of the fixed asset turnover ratio shows fluctuations in efficiency over time.
From March 31, 2020, to December 31, 2021, the fixed asset turnover ratio remained relatively stable, ranging between 22.51 and 26.14. This indicates that Omnicom Group was effectively utilizing its fixed assets to generate revenue during this period. However, there was a significant decline in efficiency observed from December 31, 2021, to June 30, 2022, with the ratio dropping to 14.40 and then gradually increasing to 19.02 by December 31, 2024.
The fluctuations in the fixed asset turnover ratio suggest potential changes in the company's operations or investment in fixed assets. A higher ratio generally indicates more efficient utilization of fixed assets to generate revenue. Conversely, a lower ratio may imply underutilization of assets or declining sales relative to the asset base.
Overall, Omnicom Group Inc's fixed asset turnover ratio experienced some variability over the analyzed period, highlighting the importance of monitoring asset efficiency to ensure optimal financial performance.
Peer comparison
Dec 31, 2024