Omnicom Group Inc (OMC)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,472,300 | 13,249,600 | 12,984,400 | 12,714,600 | 12,879,400 | 12,690,700 | 12,570,800 | 12,464,900 | 12,205,800 | 12,213,600 | 12,209,600 | 12,187,200 | 12,091,400 | 12,004,300 | 11,816,000 | 11,828,900 | 11,858,000 | 12,206,600 | 12,652,000 | 12,782,000 |
| Payables | US$ in thousands | 12,484,400 | 10,937,500 | 10,647,800 | 10,337,700 | 11,634,000 | 9,601,100 | 9,948,800 | 9,585,200 | 11,000,200 | 9,027,800 | 9,553,400 | 9,899,600 | 11,897,200 | 9,953,800 | 9,988,500 | 9,465,800 | 11,513,000 | 8,572,700 | 7,919,500 | 9,387,200 |
| Payables turnover | 1.08 | 1.21 | 1.22 | 1.23 | 1.11 | 1.32 | 1.26 | 1.30 | 1.11 | 1.35 | 1.28 | 1.23 | 1.02 | 1.21 | 1.18 | 1.25 | 1.03 | 1.42 | 1.60 | 1.36 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,472,300K ÷ $12,484,400K
= 1.08
Based on the data provided, Omnicom Group Inc's payables turnover ratio has exhibited some fluctuations over the periods outlined. The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times during a period the company pays off its suppliers.
Omnicom Group Inc's payables turnover ratio ranged from a low of 1.03 on December 31, 2020, to a high of 1.60 on June 30, 2020. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be a sign of good liquidity or effective management of trade credit terms.
However, it is important to note that a very high payables turnover ratio could also indicate that the company is not taking advantage of credit terms offered by suppliers. Conversely, a low payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could strain supplier relationships or indicate liquidity issues.
Omnicom Group Inc's payables turnover ratio has generally remained within a moderate range, indicating a balanced approach to managing trade credit terms. It is essential to assess the payables turnover ratio in conjunction with other financial ratios and factors to gain a comprehensive understanding of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024