Omnicom Group Inc (OMC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 35.77 | 40.26 | 37.83 | 36.11 |
| Days of sales outstanding (DSO) | days | 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 | 191.10 | 160.41 | 176.41 | 169.76 |
| Number of days of payables | days | 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 | 334.76 | 266.15 | 289.80 | 284.11 |
| Cash conversion cycle | days | -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 | -107.89 | -65.48 | -75.56 | -78.25 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.05 + 215.14 – 329.71
= -76.52
The cash conversion cycle of Omnicom Group, Inc. has displayed some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 215.14 days compared to the previous quarter Q3 2023 when it stood at 183.41 days. This rise indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.
Looking further back, the trend in the cash conversion cycle shows varied performance. In Q1 and Q2 of 2023, the cash conversion cycle hovered around 180 days, indicating a relatively stable operational efficiency in converting resources into cash during those quarters. However, in Q4 and Q2 of 2022, the cycle was higher, signifying potential delays in the conversion process during those periods.
Overall, analyzing the cash conversion cycle data suggests that Omnicom Group, Inc. has experienced some fluctuations in its efficiency in managing cash flow from operations. It is important for the company to closely monitor and potentially improve its cash conversion cycle to enhance liquidity and operational effectiveness.
Peer comparison
Dec 31, 2023