Omnicom Group Inc (OMC)

Short-term

Turnover ratios

Omnicom Group, Inc. has activity ratios that provide insights into the efficiency of its operations.

1. Inventory Turnover: The inventory turnover ratio for Omnicom Group, Inc. is consistently at 0.00 across all quarters, indicating that the company is managing its inventory levels effectively, or it may not hold significant amounts of inventory in its operations.

2. Receivables Turnover: The receivables turnover ratio fluctuates between 1.70 and 2.19 throughout the quarters. This suggests that, on average, the company collects its accounts receivable approximately 1.70 to 2.19 times per year, indicating a moderate efficiency in collecting credit sales.

3. Payables Turnover: The payables turnover ratio is consistently at 0.00 in all quarters, which may suggest that the company is not utilizing its accounts payable to finance its operations actively. Alternatively, it may indicate that the company has efficient payment terms with its suppliers.

4. Working Capital Turnover: The data provided does not include information on working capital turnover, so it is not possible to analyze this ratio for Omnicom Group, Inc.

Overall, the activity ratios for Omnicom Group, Inc. show that the company efficiently manages its inventory and accounts receivable, while also possibly maintaining favorable payment terms with its suppliers. Further analysis and comparison with industry benchmarks could provide more context on the company's operational efficiency.

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Average number of days

The days of inventory on hand (DOH) for Omnicom Group, Inc. was not provided in the data table. However, the days of sales outstanding (DSO) showed fluctuating trends over the past eight quarters. In Q4 2023, the DSO was at 215.14 days, which was an increase from the previous quarter's 183.41 days. This suggests that the company took longer to collect its accounts receivable in Q4 2023 compared to Q3 2023.

Comparing the DSO to the same quarter in the previous year, Q4 2022 had a DSO of 206.83 days, indicating an increase in the collection period in Q4 2023. Notably, there was a significant increase in DSO in Q4 2023 compared to Q3 2022 when it was 167.00 days, reflecting potential challenges in receivables management during the latest quarter.

Unfortunately, the number of days of payables was not available in the data for analysis, which limits the complete assessment of the company's activity ratios. However, based on the DSO trend alone, Omnicom Group, Inc. may want to focus on improving its accounts receivable collection process to shorten the time it takes to receive payments from customers and enhance overall liquidity and working capital management.

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Long-term

Omnicom Group, Inc. demonstrates a consistently high fixed asset turnover ratio, ranging from 14.71 to 16.82 over the past eight quarters. This indicates the company's ability to generate revenue efficiently from its fixed assets, such as property, plant, and equipment.

In contrast, the total asset turnover ratio fluctuates slightly between 0.52 and 0.59 during the same period. This ratio reflects the company's overall ability to generate sales from all its assets. While the fluctuations suggest some variability in asset utilization, the ratios generally remain within a close range.

Overall, Omnicom Group, Inc. appears to effectively utilize its fixed assets to generate revenue, while also efficiently utilizing its total assets to drive sales. The stability of the fixed asset turnover ratio may indicate a consistent level of productivity and efficiency in the company's operations over the analyzed quarters.