Omnicom Group Inc (OMC)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,692,200 | 14,499,500 | 14,364,800 | 14,322,100 | 14,289,100 | 14,276,700 | 14,268,300 | 14,272,700 | 14,289,300 | 14,190,500 | 13,962,000 | 13,191,100 | 13,171,100 | 13,555,300 | 13,972,600 | 14,891,700 | 14,953,700 | 14,899,200 | 14,989,700 | 15,129,500 |
| Receivables | US$ in thousands | 8,659,800 | 7,285,800 | 7,460,100 | 7,062,200 | 8,097,100 | 6,532,300 | 7,043,700 | 7,071,600 | 8,472,500 | 7,186,200 | 7,246,300 | 6,633,200 | 7,813,400 | 6,298,300 | 5,290,800 | 6,690,500 | 7,829,000 | 6,547,900 | 7,244,900 | 7,036,700 |
| Receivables turnover | 1.70 | 1.99 | 1.93 | 2.03 | 1.76 | 2.19 | 2.03 | 2.02 | 1.69 | 1.97 | 1.93 | 1.99 | 1.69 | 2.15 | 2.64 | 2.23 | 1.91 | 2.28 | 2.07 | 2.15 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,692,200K ÷ $8,659,800K
= 1.70
Omnicom Group, Inc.'s receivables turnover ratio has fluctuated over the past eight quarters. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover ratio generally signifies better effectiveness in collecting outstanding payments from customers.
In the most recent quarter, Q4 2023, Omnicom's receivables turnover stood at 1.70 times, showing a decrease from the previous quarter. This may indicate that the company took longer to collect its receivables compared to the prior period. The lower turnover ratio could be a potential concern, suggesting that Omnicom may be facing challenges in managing its accounts receivable efficiently.
Comparing Q4 2023 to Q4 2022, there has been a slight decrease in the receivables turnover ratio, indicating a potential deterioration in the company's receivables management performance over the past year. Omnicom's receivables turnover has been fluctuating over the quarters, with some variability observed, possibly due to changes in credit policies, economic conditions, or customer payment behavior.
Overall, Omnicom Group, Inc. should monitor its receivables turnover closely and take necessary actions to improve collection efficiency and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023