Omnicom Group Inc (OMC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 43.95 | 52.30 | 50.60 | 49.14 | 38.05 | 46.52 | 47.56 | 44.18 | 37.52 | 40.72 | 36.95 | 39.44 | 36.25 | 38.00 | 34.52 | 35.14 | 33.90 | 35.12 | 33.42 | 37.50 |
| Days of sales outstanding (DSO) | days | 215.01 | 202.75 | 203.52 | 193.93 | 215.14 | 183.41 | 189.56 | 179.98 | 206.83 | 167.01 | 180.19 | 180.84 | 216.42 | 184.84 | 189.44 | 183.54 | 216.53 | 169.59 | 138.21 | 163.99 |
| Number of days of payables | days | 338.24 | 301.31 | 299.32 | 296.77 | 329.71 | 276.14 | 288.87 | 280.68 | 328.95 | 269.79 | 285.59 | 296.49 | 359.14 | 302.65 | 308.55 | 292.08 | 354.38 | 256.34 | 228.47 | 268.06 |
| Cash conversion cycle | days | -79.27 | -46.26 | -45.20 | -53.70 | -76.52 | -46.21 | -51.75 | -56.51 | -84.60 | -62.07 | -68.46 | -76.21 | -106.47 | -79.82 | -84.59 | -73.40 | -103.96 | -51.63 | -56.84 | -66.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.95 + 215.01 – 338.24
= -79.27
Omnicom Group Inc has shown a consistently negative cash conversion cycle over the past few years, indicating strong efficiency in managing its working capital. The company has been able to convert its investments in inventory and accounts receivable into cash quickly, with the cycle ranging from negative 45.20 days to negative 106.47 days. This suggests that Omnicom Group Inc is able to collect cash from its customers and convert its inventory back into cash at a faster pace than paying off its suppliers, resulting in a net positive working capital position. This efficient management of the cash conversion cycle reflects the company's strong liquidity and operational efficiency in generating cash flows from its core business activities.
Peer comparison
Dec 31, 2024