Omnicom Group Inc (OMC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,432,000 | 4,281,800 | 5,316,800 | 5,600,500 | 4,305,700 |
| Short-term investments | US$ in thousands | 0 | 60,700 | 0 | 0 | 3,600 |
| Total current liabilities | US$ in thousands | 16,246,000 | 15,052,800 | 16,226,200 | 15,525,100 | 15,980,900 |
| Cash ratio | 0.27 | 0.29 | 0.33 | 0.36 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,432,000K
+ $0K)
÷ $16,246,000K
= 0.27
The cash ratio of Omnicom Group, Inc. has shown a fluctuating trend over the past five years. The ratio stood at 0.33 as of December 31, 2023, which indicates that the company had $0.33 in cash and cash equivalents for every dollar of current liabilities. This represents a slight decrease from the previous year's ratio of 0.35 and a continuation of the downward trend observed since 2020.
While the cash ratio provides insight into the company's ability to cover its short-term liabilities with its readily available cash, a decreasing trend could signal potential liquidity challenges if the trend persists. It is important for investors and stakeholders to monitor this ratio closely to ensure that the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023