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