Omnicom Group Inc (OMC)
Total asset 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 |
| Total assets | US$ in thousands | 28,044,600 | 27,002,500 | 28,421,800 | 27,647,200 | 26,783,400 |
| Total asset turnover | 0.52 | 0.53 | 0.50 | 0.48 | 0.56 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,692,200K ÷ $28,044,600K
= 0.52
Based on the data provided, Omnicom Group, Inc.'s total asset turnover ratio has fluctuated over the past five years. The total asset turnover ratio indicates how efficiently the company is using its assets to generate revenue. A higher ratio signifies better utilization of assets.
In 2020 and 2021, the total asset turnover was 0.48 and 0.50, respectively, showing a slight improvement year over year. However, this ratio decreased in 2022 to 0.53 before dropping further to 0.52 in 2023. The decline in the total asset turnover ratio over the last two years might suggest that Omnicom Group, Inc. is becoming less efficient in generating revenue from its assets.
It is important for the company to analyze the underlying reasons for the decrease in total asset turnover and take appropriate measures to improve asset utilization efficiency. This could involve optimizing the management of inventory, reducing excess assets, or enhancing operational processes to generate more revenue from existing assets. Monitoring and improving the total asset turnover ratio can help Omnicom Group, Inc. enhance its overall financial performance and profitability.
Peer comparison
Dec 31, 2023