Omnicom Group Inc (OMC)

Receivables 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
Receivables US$ in thousands 8,659,800 8,097,100 8,472,500 7,813,400 7,829,000
Receivables turnover 1.70 1.76 1.69 1.69 1.91

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $14,692,200K ÷ $8,659,800K
= 1.70

The receivables turnover ratio for Omnicom Group, Inc. has shown a downward trend over the past five years. It has decreased from 1.91 in 2019 to 1.70 in 2023. This indicates that the company is taking longer to collect its accounts receivable. A decreasing trend in the receivables turnover ratio could suggest that the company's credit policies may have become less stringent or that customers are taking longer to pay their bills. It is essential for the company to closely monitor and manage its accounts receivable collection process to ensure timely payment and maintain healthy cash flows.


Peer comparison

Dec 31, 2023

Company name
Symbol
Receivables turnover
Omnicom Group Inc
OMC
1.70
Interpublic Group of Companies Inc
IPG
1.36