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

Company name
Symbol
Cash ratio
Omnicom Group Inc
OMC
0.27
Interpublic Group of Companies Inc
IPG
0.23