Omnicom Group Inc (OMC)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,689,100 | 14,692,200 | 14,289,100 | 14,289,400 | 13,171,100 |
| Receivables | US$ in thousands | 9,242,000 | 8,659,800 | 8,097,100 | 8,472,500 | 7,813,400 |
| Receivables turnover | 1.70 | 1.70 | 1.76 | 1.69 | 1.69 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,689,100K ÷ $9,242,000K
= 1.70
The receivables turnover ratio for Omnicom Group Inc has been relatively stable over the past five years, ranging from 1.69 to 1.76. This ratio indicates that, on average, the company is able to collect its accounts receivable approximately 1.69 to 1.76 times per year. A higher turnover ratio suggests more efficient management of accounts receivable and quicker conversion of credit sales into cash. However, it is important to consider industry norms and historical trends when evaluating this ratio. In Omnicom's case, the consistency of the receivables turnover ratio may indicate a steady and effective credit and collection policy. Further analysis of the company's accounts receivable aging and collection practices could provide additional insights into its financial health and operational efficiency.
Peer comparison
Dec 31, 2024